2018 Income Taxes……How Does it Impact YOU?

 

 

 

 

 

2018 Canadian Income Tax Changes

It is coming up to that time of year again, simply not saying this three letter word unfortunately does not make its inevitability go away.  Say it with me it’s TAX time.  The good news is that there is still plenty of time to get organized before the April 30th filing date, so no need to panic yet.

For now you should be aware of a couple of changes in the 2018 tax regulations that could impact your tax situation listed below.

Corporations

Lowering of the small business tax rates (for Canadian Controlled Private Corporations – CCPC’s).  The federal tax rate for CCPC’s dropped from 10.5% down to 10% effective January 1, 2018; their is a further reduction in this tax rate down to 9% effective January 1, 2019.

Business & Personal

The contribution of family members and salaries has been a focus for several years.  In order for family members to receive income from a business (ie. income sprinkling) family members must work in the business at least 20 hours per week or own at least 10% of the business.

Personal

There are new federal personal income tax brackets for the 2018 tax year.  Although the federal tax rates in and of themselves remain the same (15%, 20.5%, 26%, 29% and 33%) there is an adjustment in range of taxable income within each tax bracket which will result in savings for taxpayers.  As an example in 2017 the federal income tax on the first $45,916 of taxable income was 15%, in 2018 the federal income tax rate on the first $46,605 of taxable income is 15%.  This represents an increase of taxable income subject to the lowest federal tax of $689.


Book Your Appointment at AWFS TODAY!

Cell:416.254.4935 | Email:asmith@awfsconsulting.com | Office:416.284.7906

Get a head start on tax season to beat the rush and understand:

  • The information you need to collect to file 2018 personal and corporate income taxes;
  • Your preliminary tax situation; and
  • What you can do to impact your tax situation even after 2018 has ended.

See You SOON!


It is advisable to seek professional advice to understand the tax laws that impact your particular situation, and to guide you through the complexities of Canadian Income taxes.

AWFS Consulting Inc. offers professional tax, business advisory, and accounting services to clients. The company’s mission is to offer financial leadership and support to clients in this ever-changing economic environment by empowering clients with financial knowledge.