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BC
benefits by converting to HST at 12%
July 23, 2025
The Premier announced today that BC will benefit
and business will benefit from the change to
HST.
The downside is that clients who aren't
business's will now pay tax on services that were
previously exempt from PST, such as accounting fees.
One way to make your accounting fees
deductible is to ensure that your accountant is
accounting for your investments. If they are tracking
your ACB and actually accounting, not just preparing
your tax return, your tax return preparation costs may
be at least partially or even completely deductible
against income on your personal tax return. See IT 99
for more information.
http://www.cra-arc.gc.ca/E/pub/tp/it99r5-consolid/README.html?=slnk
Don't
hit your accountant with this request at tax time as it
will require time and cost you to get up to speed with
your accounting, in fact, they will require a complete
historical record keeping exercise if they aren't
currently accounting for your portfolio. Your RRSP's,
RESP's, TFSA, RDSP and portfolio held in a non
registered account should all be part of the process.
You may find there are unreported capital gains and
losses and your old returns for the past 10 years may be
able to be adjusted to include these figures in order to
accurately track your income.
Why would you
care? Capital losses carry forward and are utilizable
against regular income on your final date of death tax
return. That's also where you report the collapse of
your RRSP or RRIF and pay tax on the whole lump sum at
once. If calculating capital losses wasn't on your
radar, you may want to determine if your parents have
claimed theirs as the tax on death could be
significantly lower with these valuable carry
forwards.
Why would you want to do this now?
The HST kicks in July 2010. If you get that accounting
done before then, it's going to cost you 7% less than if
you wait until after the HST kicks in. In BC, HST will
be 12%, in Ontario, even more reason as their HST will
be 13% because their sales tax component is 8%.
Disclaimer:
Eileen Reppenhagen CGA does
not research or endorse any
product or service appearing in ads
posted on this site.
Please
do NOT rely on or use the
information on this website as a
basis for a course of action without
obtaining appropriate professional
advice
.
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