intermediate tax tune-up, 2011
TRANSCRIPT
IntermediateTax Tune-Up
Prepared for
Your OrganizationPresented by
Allan Loiselle,Life member, the A.P.A. & T.C.
[email protected](519) 870-1529
Here’s a sample drawn from the 2011 presentation.
• Relevant material attendees can use in their practice right away.
• Tons of Group discussion.
• Real world exercises.
Presented by someone with solid experience in the tax preparation field. (Who can actually speak)
An interactive, fun workshop, featuring:
• 2010 Tax Rates and Non Refundable Amounts• Rental income• Investment income• HST – and how your business clients benefit• Some tax credits that will impress your client• Questions to ask your client
Today’s Agenda
• Popular investment• Common source of
secondary income• Common source of
challenges• Subject to misinformation• Worthy of review today
So you wanna be a landlord, eh?
Rental Income
Common source of problems for APA&TC exam writers Prorating expenses for owner
occupied dwellings Prorating expenses for non-
calendar periods Calculating Capital Cost Allowance Restrictions
Rental Exercise, Part 1
• Mike MacIver, from Maidstone, sold his rental property located on Wilson Ave, in Chatham. The ACB was $165,000, and he sold it for $273,500 on July 31st, 2009. Commissions and legal costs totaled $8,500.
• The Purchaser assumed an existing mortgage with a balance of $85,000, and paid Mike a deposit of $33,500. In order to get the sale in a depressed market, Mike took back a second mortgage for the balance, with the principal due in equal annual installments over four years, starting June 30, 2010.
• Required: Calculate the capital gain reserve for 2010.
Rental Exercise, Part 2
Mike MacIver has another property, a duplex on Jasper Ave., in Maidstone. Both sides are 2 bedroom units of 1,500 sf, and he lives in the unit on the western side. There is no common area. Mike and his spousal person, Maryanne, bought the property in 2005 for $215,000. In 2007 they bought new appliances for the rental unit costing $2,000. Book value at January 1st 2010 was $1,150.
Prepare a rental income statement for 2010 from the information on this and the next page.
Auto Expense Rates
Can a self employed person use this method? Why or why not?
Investment Exercise
Wendy Wainwright, from Wroxeter, is actively involved in on-line trading, using a popular e-trade system. She brings you her trading information.
Assume there is a $10 fee for each transaction.Calculate the adjusted cost base for the Acme Wholesale
Group shares at December 31st
Calculate the taxable capital gain or loss on the Delaware Racing Corp shares sold on November 15th.
What happens if I sell my farm?• $750,000 Capital Gains
Exemption available upon the sale of a Qualified Farm Property
• Rules are very, very complex• Consultation with an
experienced expert is strongly advised
Did we say this is complex? Do not try this one on your own without help from an experienced expert.
We really mean it.
Impressing your client (Damn, you’re good)Ontario has a whole mess of refundable credits that hardly ever get used.
1. Ontario Energy and Property Tax Credit**2. Ontario Children’s Activity Tax Credit**3. Northern Ontario Energy Credit4. Ontario Senior Homeowners’ Property Tax Grant5. Apprenticeship Training Tax Credit6. Cooperative Education Tax Credit
** New for 2010 and 2011
Developing a relationship with your client
• You are more than a data entry clerk• You are a tax accountant• You have responsibilities to your client and to your
practice• Ask the right questions• Ask questions that develop a stronger relationship• Use a client questionnaire to ensure all bases are
covered - see the example in your handout• Then follow up with additional services where needed
Developing a relationship with your client
• You can’t do a tax return correctly in only a few moments
• Invest some time• Do it right and win clients for
life
