March 31, 2007 by Dan White.

A married Irishman went into the confessional and said to his priest, 

“I almost had an affair with another woman.”

The priest said, “What do you mean, almost?”

The Irishman said, “Well, we got undressed and rubbed together, but 

then I stopped.”

The priest said, “Rubbing together is the same as putting it in. You’re

not to see that woman again. For your penance, say five Hail  Mary’s

and put $50 in the poor box.”

The Irishman left the confessional, said his prayers, and then walked 

over to the poor box. He paused for a moment and then started to 

leave. The priest, who was watching, quickly ran over to him saying, 

“I saw that. You didn’t put any money in the poor box!”

The Irishman replied, “Yeah, but I rubbed the $50 on the box, and

according to you, that’s the same as putting it in!”

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March 31, 2007 by Dan White.

For business reasons the answer is yes.

For reduced liability the answer is no. There could be more liabilities by being a director than there are by being a sole proprietorship.

For reduced tax. The answer is No. You pay more tax when you combine the corporate tax with your own when you incorporate.

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March 30, 2007 by Dan White.

Dear Editor,

 What is your take on all the government bureaucracy that business has to endure?

bit of an index: 2846
Small business is the backbone of the economy and that is where we have placed our emphasis. These are not simplistic pledges; they are the heart of our tradition. They have been the soul of our party across generations. It is the glory and the greatness of our Liberal tradition to speak for those who have no voice, to remember those who are forgotten, to respond to the frustrations and fulfil the aspirations of all Canadians seeking a better life in a better land.

 TD,

Dear TD

The take away here is to understand what is happening here.
 

We have a government empire in the business of passing laws to hurt people and companies. The population is not requesting this behaviour, it is self serving to the government.
 

You cannot realistically argue that creating a never ending legal nightmare beyond the abilities of any lawyer to understand, so that only a team of lawyers after sitting down together could guide a business owner through the quagmire of laws and regulations. Even if this was possible, it would be unrealistic.
 

We have reached the point of legal super saturation.
 

There is but one answer, and that is do reinvent business.
 

Best Regards
 

Dan
 

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March 24, 2007 by Dan White.

Good question.

 One that your email box would not be large enough to hold list or our memories large enough to contain all the items. J
 

The answer is much simpler than the question.
 

All expenses that are incurred 100% legitimately for business purposes are 100% deductible. You just need the right “Business Statement” the story of why it is directly related to business.
 

All the rest of the expenses are in direct relationship to the personal benefit that is directly derived.  On a scale of zero to a hundred. E.G. your home may be 20% personal, therefore the deductable amount is 20% of the total cost of home ownership.
 

If you use your computer 50% for personal and 50% for business, it would only be 50% deductible, if you use your computer only for business, then it is 100% deductible.
 

Remember that in dediding what is deductible or not, it is importand to “Think Correctly” do not to think about what is deductible, but rather think about how it relates to your business.? The aforementioned is a good example and it is a required way to think.
The other point you need to remember is that if the purchase is considered an asset, then that is treated differently. If the purchase price of the Asset is less than $500 then you can write the entire item off in the year of purchase. If the item is over $500 then depending on what class it is… how much you can depreciate it.

 

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March 20, 2007 by Dan White.

-       Woke up early in the morning? Don’t want to get up and go to work? Open the “Forbes” magazine and find your name on the list.
Couldn’t find it? So get the f…. up and rush to work!!!!

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March 20, 2007 by Dan White.

A man came home from work,sat down in his favoriate chair, turned on the TV, adn said to his wife, “Quick, bring me a beer before it sarts.”

She looked a little puzzled, but brought him a beer. When he finished it, he said, “Qucik, bring me another beer. Its going to start.”

This time she looked a lottle angry, but brought him another beer. When it iwas gone, he said “Quick bring me another beer before it starts.”

Thats it, she blew her top.

“You lazy bastard! You waltz in here, flop down your fat ass, don’t even say hello to me and then expect me to run around like your slave getting you beer after beer. Don’t you  realize that have a job and then I cook and clean and wash and iron all day long??”

 the husband sighed and said, “Oh shit, its started.”

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March 17, 2007 by Dan White.

OMG… They really do walk among us!!!!!!!!!!!!!!!!!!

I walked into a Burger KIng with a buy-one-get-one-free coupon for a
sandwich.  I handed it to the girl and she looked over at a little
chalkboard that said “buy one-get one free”.  ”They’re already buy-
one-get-one-free”, she said, “so I guess they’re both free”.
She handed me my free sandwiches and I walked out the door.

AND…….. they reproduce!

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March 7, 2007 by Dan White.

CURTESY OF WWW.TAXTIPS.CA

With thanks

Dan White

Income Tax Act s. 118.2(1)A taxpayer can claim medical expenses paid by the taxpayer or the taxpayer’s spouse or common-law partner. The medical expenses claimable include those paid for the taxpayer, the taxpayer’s spouse or common-law partner, or a child or grandchild (who is dependent on the taxpayer or spouse for support) of the taxpayer or spouse. Also claimable are medical expenses for a parent, grandparent, sibling, aunt, uncle, niece or nephew who resided in Canada at any time during the year and depended on the taxpayer or taxpayer’s spouse for support.

Medical expenses can be claimed for any 12 month period ending in the current tax year (and not claimed in the prior tax year), or in the year of death for any 24 month period ending in the current tax year (and not claimed in a prior year). In order to claim all medical expenses for 24 months in the year of death, the tax return for the prior year could be revised so that no medical expenses are claimed, leaving them available for the year of death. To do this, a T1Adj must be filed. See changing your tax return above.

Generally, all medical expenses can be claimed, even if they were incurred outside of Canada. When medical expenses are reimbursed by an insurance plan, only the portion not reimbursed can be claimed.

Medical expenses for the taxpayer, the taxpayer’s spouse or common-law partner, and dependent children under 18 are claimed on line 330 of the federal tax return. Only expenses in excess of the lesser of $1,844 (federal, for 2005) or 3% of net income can be claimed. The lowest tax rate is applied to the medical expenses to determine the amount of the tax credit.

Starting with the 2004 tax year, there is a separate calculation for the medical expense tax credit for other eligible dependents, which includes children 18 years of age and older, grandchildren, parents, grandparents, siblings, aunts, uncles, nieces or nephews.

Medical expenses for other eligible dependents are claimed on line 331 of the federal tax return. A separate calculation is done for each dependent. Only expenses in excess of the lesser of $1,844 (federal, for 2005) or 3% of net income of the dependent can be claimed, up to a maximum of $10,000 per dependent (federal for 2005, up from $5,000 for 2004). The lowest tax rate is applied to the medical expenses to determine the amount of the tax credit.

Most provinces have also increased the maximum allowable medical expenses for other eligible dependents to $10,000 for 2005. See the tables of non-refundable tax credits for the maximum for each province and territory.

Tax tips:
- You may be eligible for the refundable medical expense supplement.
- In the year of a taxpayer’s death, it may help to adjust the prior year tax return to remove medical expenses, and claim them on the year of death tax return. a. Non-prescription medications are not deductible.

Tax Court of Canada cases prior to 2004 had determined that non-prescription medications could be included as medical expenses on a tax return, as long as they were prescribed by a doctor and “recorded by a pharmacist”. The allowable medical expenses are, according to the Income Tax Act:

“drugs, medicaments or other preparations or substances… manufactured, sold or represented for use in the diagnosis, treatment or prevention of a disease, disorder, abnormal physical state, or the symptoms thereof or in restoring, correcting or modifying an organic function, purchased for use by the patient as prescribed by a medical practitioner or dentist and as recorded by a pharmacist”

The previous advice was to have medications qualify for this deduction, make sure you get a written prescription from the doctor, and keep your itemized pharmacy receipt.

A 2004 Tax Court of Canada case, Melnychuk v. the Queen, has come to a very different conclusion. The Judge in this case concluded that “The requirement that a medication be recorded by a pharmacist refers to the recording requirements found in legislation governing pharmacists in each province and territory. Unless that legislation requires a pharmacist to keep a record of the sale of a particular medication, the cost of the medication will not be a medical expense under the Income Tax Act, regardless of how it is sold or treated within a particular pharmacy.” A 2005 Tax Court of Canada case, Rasler v. the Queen, came to the same conclusion, disallowing non-prescription medications because they were off-the-shelf medications.

It is possible that this case could be appealed and the decision changed in the future. Our advice is to keep prescriptions and receipts for any non-prescription medications prescribed by your doctor, and talk to your tax advisor as to whether they can be deducted.

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