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Response Bookkeepers At Response Bookkeepers we understand the complexity of managing your business.

10/20/2026

The Small Business Deduction (SBD) can significantly reduce the federal corporate tax rate on eligible income: but the rules matter.

For a Canadian-controlled private corporation (CCPC), the SBD generally applies to the first $500,000 of active business income. However:

• Associated corporations must share the $500,000 business limit.
• Significant passive investment income can reduce access to the SBD. The business limit may begin decreasing when adjusted aggregate investment income exceeds $50,000 and can be eliminated at $150,000.
• Federal and provincial rules may differ, so proper planning is essential.

Action steps for your business:

1. Confirm your corporation’s CCPC status and identify active business income.
2. Review associated corporations and complete required CRA allocations and filings on time.
3. Monitor passive investment income throughout the year.
4. Track income carefully by source to support a clean, accurate year-end.

Don’t wait until year-end to discover that your SBD access has been reduced. A timely review can help you plan with confidence.

When all you get are questions, all you need is Response.

10/20/2026

Thinking about succession? An Employee Ownership Trust (EOT) can help you pass your business to the people who helped build it, without selling to an outside buyer. The trust holds the business for employees’ benefit, offering a way to preserve continuity and share ownership with your team.

The 2026 Spring Economic Update confirmed the $10 million capital gains exemption for qualifying sales to EOTs is permanent. It may let an eligible owner claim a deduction on up to $10 million of capital gains, not $10 million of sale proceeds, if every requirement is met.

The rules are specific. Generally, the business must be a Canadian-controlled private corporation with substantially all its assets used in an active business. A qualifying Canadian-resident trust must meet employee-benefit and ownership-control rules. Sellers must satisfy related-party restrictions and share ownership and holding-period tests, and give up control as required.

Start early: document your transition plan, obtain a defensible valuation, map out how the trust will finance the buyout, and get legal and tax advice before taking steps. The conditions are detailed, and eligibility should be confirmed with a professional before acting.

Have questions about planning a succession? Reach out: we’re happy to help you think through the bookkeeping and financial picture.

When all you get are questions, all you need is Response.

🚒 Personal Tax Tip Thursday: Volunteer firefighter and search and rescue tax creditsVolunteering your time to protect yo...
10/15/2026

🚒 Personal Tax Tip Thursday: Volunteer firefighter and search and rescue tax credits

Volunteering your time to protect your community can also come with a tax benefit. If you're a volunteer firefighter or search and rescue volunteer, you may be able to claim a non-refundable tax credit.

What to know:
✅ You generally need to complete at least 200 hours of volunteer service during the year.
✅ The service must be with a fire department or search and rescue organization, and certain eligibility rules apply.
✅ You can claim either the volunteer firefighter amount or the search and rescue volunteer amount: but not both for the same year in most cases.
✅ Keep a record of your volunteer hours and ask your organization for documentation if available.
✅ Review the CRA eligibility criteria each year, since your situation or the rules may change.

Giving back to your community is rewarding in more ways than one. If you volunteer, check whether these credits apply to you.

When all you get are questions, all you need is Response.

10/13/2026

Planning a major equipment or software purchase for your business? The timing could matter more than ever.

In September 2026, the federal government announced the Productivity Mega Deduction, making immediate expensing permanent and expanding it from roughly 15% to more than 65% of eligible assets, including software, computer equipment, vehicles, patents and certain R&D assets. The measure is designed to reduce the marginal effective tax rate on new investment to approximately 6.4%.

What does “immediate expensing” mean? Instead of claiming the cost of an eligible asset gradually over several years through Capital Cost Allowance (CCA), your business may be able to deduct the full cost in the year the asset is acquired and available for use.

Before making a purchase:
✅ Review your planned 2026–2027 capital purchases
✅ Confirm the asset is acquired and available for use in the intended fiscal year
✅ Keep the invoice, receipt and proof of payment
✅ Separate capital assets from ordinary operating expenses
✅ Confirm eligibility and conditions before you buy

Eligibility rules and asset categories have specific conditions, so don’t assume every purchase qualifies. Professional advice can help you plan confidently, and avoid a year-end scramble.

Book a review with Response Bookkeepers to discuss your upcoming investments.

When all you get are questions, all you need is Response.

Adopting a child under 18? You may be able to claim eligible adoption expenses as a non-refundable tax credit.What to ke...
10/08/2026

Adopting a child under 18? You may be able to claim eligible adoption expenses as a non-refundable tax credit.

What to keep in mind:
✅ Eligible expenses can include fees paid to an adoption agency, legal fees, court costs, travel, and other reasonable expenses directly related to the adoption.
✅ Both domestic and international adoptions may qualify, as long as the child is under 18.
✅ The credit is claimed in the year the adoption is finalized, with a maximum amount per child.
✅ Keep all receipts, agreements, and documentation: CRA may ask to see them.
✅ If more than one person adopts the child, the total claimed cannot exceed the maximum per child.

Growing your family is a big moment: and some of the related costs may help at tax time. Keep your records organized from day one.

When all you get are questions, all you need is Response.

10/06/2026

Planning employee gifts or a holiday party? Check these CRA rules before you spend. 🎁

1️⃣ Non-cash gifts and awards
Eligible non-cash gifts and awards can total up to $500 per employee per year, including tax. Any amount over $500 is generally a taxable benefit. Small items of trivial value, such as mugs, T-shirts, plaques, coffee or tea, are not included. Performance-based rewards are taxable.

2️⃣ Long-service awards
There is a separate $500 limit. The award must be non-cash, recognize at least 5 years of service, and be provided at least 5 years after the previous long-service award. The two $500 limits cannot be combined.

3️⃣ Employer social events
A holiday party may be non-taxable when it’s available to all employees, costs no more than $150 per person including tax, and is one of up to 6 employer-paid social events during the year. Spouses or common-law partners count toward the per-person calculation. Virtual events have separate $50/$100 limits.

4️⃣ Cash and gift cards
Cash is always taxable. Gift cards are taxable when they can be converted to cash or don’t meet all CRA conditions. Qualifying retailer-specific cards may be treated as non-cash, but review each card and keep the required log.

Keep receipts, invoices, attendee details, fair market values, event costs and your annual event count. Taxable benefits must be reported on the employee’s T4.

When all you get are questions, all you need is Response.



Have questions about your year-end plans? Message Response Bookkeepers: we’re happy to help.

👵 Personal Tax Tip Thursday: The age amount tax creditIf you're 65 or older, you may qualify for the age amount: a non-r...
10/01/2026

👵 Personal Tax Tip Thursday: The age amount tax credit

If you're 65 or older, you may qualify for the age amount: a non-refundable tax credit that reduces the tax you pay on your income.

How it works:
✅ You generally qualify if you are 65 or older at the end of the tax year.
✅ The credit is based on your net income and begins to be reduced once your income passes a certain threshold.
✅ It's claimed automatically on your return based on your age and income: no separate application is usually needed.
✅ Even if you receive Old Age Security or a pension, the age amount is a separate credit with its own rules.
✅ If your net income is above the threshold, the credit may be reduced or eliminated: but it's still worth understanding how it affects your tax.

Tax planning in retirement is about knowing which credits apply as your income sources change. A small review can help you keep more of what you've earned.

When all you get are questions, all you need is Response.

09/29/2026

Could the GST/HST Quick Method simplify your bookkeeping? 🇨🇦

Eligible Canadian small businesses may be able to remit a flat percentage of GST/HST-inclusive revenue instead of tracking input tax credits (ITCs) on every purchase, and keep the difference.

Before choosing it, confirm that:
✅ You’re GST/HST registered
✅ Your taxable supplies are $400,000 or less over four consecutive fiscal quarters
✅ Your business isn’t in an excluded profession, such as accounting, bookkeeping or law

Important details:
• You still charge customers the full GST/HST rate.
• File Form GST74 (or GST74-1, where applicable) before the first day of the fiscal quarter when you want the election to take effect. It isn’t retroactive.
• You generally must stay with the Quick Method for at least one year.
• Ontario businesses may qualify for a 1 percentage point credit on the first $30,000 of revenue.
• You may still claim an ITC for capital property costing more than $30,000 per item.

The regular method may be better if your business has high expenses, significant inventory or large ITCs to claim.

Review your numbers before making the election, and get professional guidance if you’re unsure which method is best.

When all you get are questions, all you need is Response.

If you support a spouse or common-law partner who has little or no income, you may be able to claim the spousal or commo...
09/24/2026

If you support a spouse or common-law partner who has little or no income, you may be able to claim the spousal or common-law partner amount: a non-refundable tax credit that can reduce your tax bill.

What to know:
✅ The credit is reduced dollar-for-dollar by your partner's net income, so it phases out as their income increases.
✅ It can apply in the year you marry or begin living common-law, and in the year of separation or divorce in certain circumstances.
✅ If your partner has a disability, you may also be able to claim an additional amount in some cases.
✅ You generally can't claim this credit if your partner is claiming certain credits on their own return: coordinate your claims.
✅ Review your combined income and tax situation each year to see who should claim what.

Maximizing family credits starts with understanding how your incomes work together. A quick review can make a real difference.

When all you get are questions, all you need is Response.

🚨 Business Tax Tip Tuesday: A shareholder loan can become a personal tax problem: not because it was taken, but because ...
09/22/2026

🚨 Business Tax Tip Tuesday: A shareholder loan can become a personal tax problem: not because it was taken, but because repayment timing was missed.

Under s. 15(2) of Canada’s Income Tax Act, a loan or debt received by a shareholder: or a connected person: from their corporation or a related corporation may be included in the borrower’s income.

The one-year rule under s. 15(2.6) may prevent that inclusion only when:

1️⃣ The loan is repaid within one year after the end of the lender corporation’s tax year in which the loan was made; and
2️⃣ The repayment is not part of a series of loans, transactions and repayments designed to keep the balance moving.

Before relying on the rule, check:

✅ Your corporation’s year-end: not simply the withdrawal date
✅ The full balance, including personal expenses, advances and running loan accounts
✅ Whether repayment was funded by re-borrowing from the corporation
✅ Whether another exception applies, such as certain shareholder-employee loans or ordinary-course lending
✅ Documentation and accounting records supporting the loan and repayment

If the rule doesn’t apply, the amount may need to be included in the shareholder’s income for the year the loan arose. A later repayment may not fix the issue immediately and could require amended returns, interest or other tax consequences.

Don’t wait until year-end to review your shareholder loan account. Get advice before taking funds personally.

When all you get are questions, all you need is Response.

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Regina, SK

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Wednesday 9am - 5pm
Thursday 9am - 5pm
Friday 9am - 5pm

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+18772805308

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