{"id":75,"date":"2021-04-05T15:53:29","date_gmt":"2021-04-05T15:53:29","guid":{"rendered":"https:\/\/canadiantaxpodcast.ca\/?p=75"},"modified":"2021-04-12T19:20:45","modified_gmt":"2021-04-12T19:20:45","slug":"canadian-tax-podcast-006-filing-late-returns-self-employed-instalments-joint-venture-reporting","status":"publish","type":"post","link":"https:\/\/canadiantaxpodcast.ca\/index.php\/2021\/04\/05\/canadian-tax-podcast-006-filing-late-returns-self-employed-instalments-joint-venture-reporting\/","title":{"rendered":"Canadian Tax Podcast 006: Filing Late Returns;  Self-employed Instalments; Joint Venture Reporting"},"content":{"rendered":"\n<p>Canadian Tax Podcast for the week of April 05, 2021. This week we cover:<\/p>\n\n\n\n<ul><li>Principal Residence Exemption to be taxed?<\/li><li>Joe Biden&#8217;s proposed corporate tax rate changes;<\/li><li>Quebec lowers corporate taxes on small businesses;<\/li><li>CRA&#8217;s &#8220;Before You Call&#8221; List;<\/li><li>How to approach filing 11 years of late corporate and personal tax returns;<\/li><li>What happens with late-paid instalments for self-employed people;<\/li><li>Reporting joint venture income;<\/li><\/ul>\n\n\n<p><!--more--><\/p>\n\n\n<p><\/p>\n\n\n\n<h2>[INTRO]:<\/h2>\n\n\n\n<p>\u201cThis is the Canadian Tax Podcast, <strong>Episode # 006<\/strong>,&nbsp; hosted by me, Cameron Ware. Good morning\u201d<\/p>\n\n\n\n<h2>&nbsp;[NEWS SECTION]<\/h2>\n\n\n\n<ul><li>\u201cHappy Monday, it is the week of <strong>April 05, 2021<\/strong>. We\u2019ll start with the news.<\/li><\/ul>\n\n\n\n<h2>&nbsp;[ITEM 1] \u2013 CAPITAL GAINS TAX<\/h2>\n\n\n\n<ul><li>Financial Post article talking about messing with the Principal Residence Exemption \/ capital gains exemption<\/li><li>The fact that this is being talked about at all is concerning.<\/li><li>Maybe a system like the US: $250k \/ $500k married;<\/li><li><a href=\"https:\/\/financialpost.com\/real-estate\/why-tinkering-with-the-capital-gains-exemption-is-the-nuclear-option-for-housing-market-intervention\">https:\/\/financialpost.com\/real-estate\/why-tinkering-with-the-capital-gains-exemption-is-the-nuclear-option-for-housing-market-intervention<\/a><\/li><\/ul>\n\n\n\n<h2>&nbsp;[ITEM 2] \u2013 JOE BIDEN\u2019S CORPORATE TAX<\/h2>\n\n\n\n<ul><li>Joe Biden thinking of messing with corporate tax rate<\/li><li>Generally increase from 21% to 28% (Then you have State tax on top of that.)<\/li><li>Also wants to mess with GILTI rates (IRC ss 951A(a)), from 10.5% to 21%<\/li><li>US shareholder of Canadian corp (Controlled Foreign Corp) = Problem<\/li><li><a href=\"https:\/\/www.cnbc.com\/2021\/03\/31\/biden-infrastructure-bill-companies-split-on-whether-to-fight-corporate-tax-hike.html\">https:\/\/www.cnbc.com\/2021\/03\/31\/biden-infrastructure-bill-companies-split-on-whether-to-fight-corporate-tax-hike.html<\/a><\/li><\/ul>\n\n\n\n<h2>&nbsp;[ITEM 3] \u2013 QUEBEC \u2013 SMALL BUSINESS DEDUCTION INCREASE<\/h2>\n\n\n\n<ul><li>Quebec budget released details that they will drop the Provincial SBD rates from 4% to 3.2%.<\/li><li>Small businesses there will pay 12.2% combined Fed and Prov.<\/li><li><a href=\"https:\/\/www.advisor.ca\/tax\/tax-news\/quebec-extends-tax-for-financial-institutions-drops-small-biz-tax-rate\/\">https:\/\/www.advisor.ca\/tax\/tax-news\/quebec-extends-tax-for-financial-institutions-drops-small-biz-tax-rate\/<\/a><\/li><\/ul>\n\n\n\n<h2>ITEM [4] \u2013 CRA: BEFORE YOU CALL<\/h2>\n\n\n\n<ul><li>CRA released their version of a \u201cFAQ\u201d for help prior to getting on the phone to call them<\/li><li>Brilliant tips like: Check \u201cCanada.ca\u201d, or \u201cCheck Wait Times\u201d;<\/li><li><a href=\"https:\/\/www.canada.ca\/en\/revenue-agency\/news\/newsroom\/tax-tips\/tax-tips-2021\/before-call-how-to-get-answers-need-during-2021-tax-filing-season.html?utm_source=mediaroom&amp;utm_medium=eml\">https:\/\/www.canada.ca\/en\/revenue-agency\/news\/newsroom\/tax-tips\/tax-tips-2021\/before-call-how-to-get-answers-need-during-2021-tax-filing-season.html?utm_source=mediaroom&amp;utm_medium=eml<\/a><\/li><\/ul>\n\n\n\n<h2>QUESTIONS<\/h2>\n\n\n\n<ul><li>Hasn\u2019t filed Returns In 11 Years<ul><li>[quote]<\/li><\/ul><ul><li>Don\u2019t feel badly. This is why I started the podcast: to help situations like this. I can\u2019t answer everything, but hope to give a starting point.<\/li><\/ul><ul><li>#1: 11 years. Do you still have a corp? Wasn\u2019t struck from the registry? (Hope that it was.)<\/li><\/ul><ul><li>If it was, just file a T2125 going forward.<\/li><\/ul><ul><li>If not, you technically have 11 years of T2\u2019s, GST rtns, t-slips, and T1 returns.<\/li><\/ul><ul><li>Might be worth doing a Voluntary Disclosure Program application;<\/li><\/ul><\/li><li>Self-Employed: Instalments<ul><li>[quote]<\/li><\/ul><ul><li>You\u2019ve missed the window to do instalments. So that ship has sailed.<\/li><\/ul><ul><li>So if you have over $3k in taxes payable, CRA wants you to do instalments for the year.<\/li><\/ul><ul><li>SUGGESTION, but with teeth.<\/li><\/ul><ul><li>If you choose not to do the instalments, you get charged interest.<\/li><\/ul><ul><li>Sometimes a penalty ($1,000, or 25% of the instalment interest charged) \/2<\/li><\/ul><ul><li>Rates are 5% right now<\/li><\/ul><ul><li>Just pay it now. One less thing hanging over your head.<\/li><\/ul><ul><li><a href=\"https:\/\/www.canada.ca\/en\/revenue-agency\/services\/tax\/prescribed-interest-rates.html\">https:\/\/www.canada.ca\/en\/revenue-agency\/services\/tax\/prescribed-interest-rates.html<\/a><\/li><\/ul><ul><li><a href=\"https:\/\/www.canada.ca\/en\/revenue-agency\/services\/tax\/individuals\/topics\/about-your-tax-return\/making-payments-individuals\/paying-your-income-tax-instalments\/instalment-interest-penalty-charges.html\">https:\/\/www.canada.ca\/en\/revenue-agency\/services\/tax\/individuals\/topics\/about-your-tax-return\/making-payments-individuals\/paying-your-income-tax-instalments\/instalment-interest-penalty-charges.html<\/a><\/li><\/ul><\/li><li>Joint Venture<ul><li>[quote]<\/li><\/ul><ul><li>Joint Venture is a non-entity entity. It exists for a specific project or task<\/li><\/ul><ul><li>In this case, intention is that you are 50\/50 venturers. (You do have a JV agreement, riiiight?)<\/li><\/ul><ul><li>Only difference is that co-venturer put up mortgage cash. Means her equity interest in the JV is higher (by whatever down payment.<\/li><\/ul><ul><li>Secondly, you need to report not \u201ccash flow\u201d, but your full portion of the JV income\/expenses. 50% of income\/expenses show up on your filings.<\/li><\/ul><ul><li>Fun fact: Usually will see 2 S125\u2019s: one for your corp\u2019s operations, and one detailing the 50% JV operation.<\/li><\/ul><ul><li>Few other things: Fixed assets are dealt with at the venturer level, meaning rarely (if ever) see depreciation taken at the JV level. (If you do, problem)<\/li><\/ul><ul><li>Stub period. Corp owners have different fiscal years to JV = need to do 12mo reporting for that specific period (Killed back in Nov\/11).<\/li><\/ul><ul><li><a href=\"https:\/\/www.canada.ca\/en\/revenue-agency\/services\/forms-publications\/publications\/p-171r\/distinguishing-between-a-joint-venture-a-partnership-purposes-section-273-joint-venture-election.html\">https:\/\/www.canada.ca\/en\/revenue-agency\/services\/forms-publications\/publications\/p-171r\/distinguishing-between-a-joint-venture-a-partnership-purposes-section-273-joint-venture-election.html<\/a><\/li><\/ul><ul><li><a href=\"https:\/\/www.canada.ca\/en\/revenue-agency\/services\/tax\/businesses\/topics\/corporations\/partnerships-deferral-corporation-tax\/joint-ventures-elimination-fiscal-period.html\">https:\/\/www.canada.ca\/en\/revenue-agency\/services\/tax\/businesses\/topics\/corporations\/partnerships-deferral-corporation-tax\/joint-ventures-elimination-fiscal-period.html<\/a><\/li><\/ul><ul><li><\/li><\/ul><\/li><\/ul>\n\n\n\n<h2>OUTRO<\/h2>\n\n\n\n<p>That will wrap things up for today. Like always, if you have any questions, send them to <a href=\"mailto:questions@canadiantaxpodcast.ca\">questions@canadiantaxpodcast.ca<\/a>, or find us on twitter: <a href=\"https:\/\/twitter.com\/cdntaxpodcast\">https:\/\/twitter.com\/cdntaxpodcast<\/a>&nbsp;&nbsp;<\/p>\n\n\n\n<p>This is Canadian Tax Podcast, thanks for listening.&nbsp;<\/p>\n<iframe src=\"https:\/\/player.blubrry.com\/?media_url=https%3A%2F%2Fmedia.blubrry.com%2Fcanadiantaxpodcast%2Fcontent.blubrry.com%2Fcanadiantaxpodcast%2F2021-04-05_CTP006.mp3&amp;podcast_link=https%3A%2F%2Fcanadiantaxpodcast.ca%2Findex.php%2F2021%2F04%2F05%2Fcanadian-tax-podcast-006-filing-late-returns-self-employed-instalments-joint-venture-reporting%2F#mode-Light&border-000000&progress-000000\" scrolling=\"no\" width=\"100%\" height=\"165\" frameborder=\"0\" id=\"blubrryplayer-1\" class=\"blubrryplayer\" title=\"Blubrry Podcast Player\"><\/iframe><p class=\"powerpress_links powerpress_links_mp3\" style=\"margin-bottom: 1px !important;\">Podcast: <a href=\"https:\/\/media.blubrry.com\/canadiantaxpodcast\/content.blubrry.com\/canadiantaxpodcast\/2021-04-05_CTP006.mp3\" class=\"powerpress_link_pinw\" target=\"_blank\" title=\"Play in new window\" onclick=\"return powerpress_pinw('https:\/\/canadiantaxpodcast.ca\/?powerpress_pinw=75-podcast');\" rel=\"nofollow\">Play in new window<\/a> | <a href=\"https:\/\/media.blubrry.com\/canadiantaxpodcast\/content.blubrry.com\/canadiantaxpodcast\/2021-04-05_CTP006.mp3\" class=\"powerpress_link_d\" title=\"Download\" rel=\"nofollow\" download=\"2021-04-05_CTP006.mp3\">Download<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Canadian Tax Podcast for the week of April 05, 2021. This week we cover: Principal Residence Exemption to be taxed? Joe Biden&#8217;s proposed corporate tax rate changes; Quebec lowers corporate taxes on small businesses; CRA&#8217;s &#8220;Before You Call&#8221; List; How to approach filing 11 years of late corporate and personal tax returns; What happens with [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[24,23,22,19],"tags":[],"_links":{"self":[{"href":"https:\/\/canadiantaxpodcast.ca\/index.php\/wp-json\/wp\/v2\/posts\/75"}],"collection":[{"href":"https:\/\/canadiantaxpodcast.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/canadiantaxpodcast.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/canadiantaxpodcast.ca\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/canadiantaxpodcast.ca\/index.php\/wp-json\/wp\/v2\/comments?post=75"}],"version-history":[{"count":2,"href":"https:\/\/canadiantaxpodcast.ca\/index.php\/wp-json\/wp\/v2\/posts\/75\/revisions"}],"predecessor-version":[{"id":81,"href":"https:\/\/canadiantaxpodcast.ca\/index.php\/wp-json\/wp\/v2\/posts\/75\/revisions\/81"}],"wp:attachment":[{"href":"https:\/\/canadiantaxpodcast.ca\/index.php\/wp-json\/wp\/v2\/media?parent=75"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/canadiantaxpodcast.ca\/index.php\/wp-json\/wp\/v2\/categories?post=75"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/canadiantaxpodcast.ca\/index.php\/wp-json\/wp\/v2\/tags?post=75"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}