It’s the end of the year and tax season is rapidly approaching. 2020 brought the COVID-19 pandemic and a whole new circumstance that none of us have ever seen, which will also bring new tax implications. In addition to the pandemic, personal tax planning in Toronto can be difficult if you had a major change in your personal or professional life. We have four reasons you should hire an accountant like Lenoard Tam and the team at Leonard Tam Professional Corporation to help.
2020 is complicated
The COVID-19 pandemic took a terrible toll on a lot of families across Canada and the world. As a part of their response, the Canadian government introduced the Canada Emergency Response Benefit (CERB). The CERB provided Canadians who were directly affected by the pandemic with $2,000 for each four-week period between March 15 and September 26, 2020. This income is taxable and a tax professional like Leonard Tam can help you sort out the implications that come with such a unique circumstance.
You own a business
Are you new to the world of owning a business or self-employment? Tax laws that apply to self-employment can be difficult to navigate if you’re unfamiliar. An effect many people saw as part of the pandemic was going from working as a full-time employee to taking contract work full-time. Without an employer withholding taxes for you, an accountant can help you know what to expect when it comes to paying taxes. This will help you to save appropriately.
If you own a business, hiring an accountant to help with your taxes is always a good idea. This can help you with complex tax laws as well as maximizing benefits that come with business-related tax write-offs. You can also get help navigating financial losses that you may have taken during the pandemic.
You bought a home
There are tax implications and conditions that come with buying a home. On one hand, you might qualify for certain rebates or incentives. On the other, you will have to pay a provincial transfer tax that varies based on your province. The provincial transfer tax in Ontario, specifically, is about 1.3 percent. However, you’ll need to be aware of other potential taxes and rebates that might come into play as well.
Major life changes
With life changes come differences in how you approach your taxes. Whether you got married or divorced in 2020, your taxes will be different than they were when you filed your 2019 taxes. By hiring an accountant like Leonard Tam, you can make sure that you’re jumping through all the hoops necessary to make the changes that come with life changes.
Talk to Leonard Tam for personal tax planning
If you have any additional questions or concerns about your 2021 tax plan, please don’t hesitate to reach out to our team at Leonard Tam Professional Corporation. You can give us a call at 416-783-2222 or send a message using our contact form.
Make sure that you’re getting the best advice with your personal tax planning in Toronto. Book a meeting with our team for a free consultation and find out how we can help you get started on your 2021 tax plan now.