TaxPlanningandSchoolFees:Areyoufullyoptimized?KGMSParentInformationSessionRiseCPAandVELAWealthMay21,2020

Agenda

 Introduction Theroleoftaxplanning BenefitProgramsandKeyDates PrivateHealthServicePlansvsGroupBenefits TaxDeductions–Individual&Corporate

Introduction

HussainHajiCPA,CAPartner

RobWallisPartner–VELAWealth

TheRoleofTaxPlanning

BenefitProgramsandKeyDeadlines  CanadaEmergencyResponseBenefit(CERB)–week3

  IfeligibleforCERB,eligibleforEmergencyWorkerBenefitfor$1,000

  CanadaChildBenefittop-up–ShouldreceiveinMay($300perchild)  CanadaEmergencyBusinessAccount(CEBA)-expanded BCCommercialRentAssistanceProgram(ApplicationsopenMay25,2020)  TaxDeferralsandDeadlines

  PersonalTax DeadlineJune1,2020  PaymentDeadlineSeptember1,2020

  CorporateTax(Decemberyearend) DeadlineJune30,2020  PaymentsDeferredtoSeptember1,2020

MedicalTaxDeductionExample-Individual

PersonalTaxReturn PaidPersonally

MedicalExpense(ifeligible) $25,000

(3%ofnetincomeormaximum$2,352)Deduct

$2,352

Expenseavailableforcredit $2,648

Non-refundableTaxCredit(20%)

$4,530

  Exampleassuminghighestrateoftax

  Childcareexpenses(Reductionofnetincome–marginaltaxratesavings)  Under7yearsofage-$8,000  7–16yearsofage-$5,000  Thoseeligiblefordisabilitytaxcredit-$11,000.

  Note:Eligibleinanytwelve-monthsendinginthetaxyear–carryforwardifnotused

TaxDeductionExample-Corporate

PrivateHealthServicesPlan(“PHSP”) PaidCorporately

Expense–E.G.SchoolFeesatKGMS(ifeligible)

$25,000

AdminFee(10%) $2,500

Tax-deductibletotal $27,500

Corporatetaxsavings(11%–27%) $3,025-$7,425

  Note:Besuretospeaktoyouradvisors,eachindividualcircumstanceisverydifferent!

Anyquestionsandareyouoptimized?

 PleasereachouttoHussainorRobtodiscussyourtaxstructureandpotentiallyusingthePHSP:

 HussainHaji

 6049364377 hhaji@risecpa.ca

 RobWallis 6047797052 rob@velawealth.com