taxdetective-Sandusky-Register

Here's a history of the progression from CGA BC's website:

http://www.cga-bc.org/about_us.aspx?id=21822

Members are being asked to answer a single question about our support for the merger. What do you think? Is this democracy? How should I answer this question?

Recognizing that the original merger principles still apply and that the CGA-BC Board is committed to protecting the rights of all of its members and students, do you support a merger between CGA-BC, ICABC and CMABC to create the Chartered Professional Accountant designation?

I have lots to read, and before I start, I am pondering...

Q: Does an anonymous poll of members using a survey company with what appears to be no security replace a vote? (of course the security may come after you vote, but I'm not testing it until I decide which way to vote)

Q: What's to stop someone populating the poll with multiple responses? (not that I'm going to try doing that, but someone might)

Q: If we merge, how can the board of the old association make promises on behalf of the new organization? Wouldn't that new merged board and the entire membership be starting fresh?

Q: What about  the people we've hired who have worked at the Association for many years? Is there any job security, and the rights of the current staff at the association, both BC and Canada? What's the cost of winding down / merging / can the Association cover those costs without having to sell the building? Will staff be promised jobs or will the Association be looking at payouts? What contracts are in place now?

Q: As for the net assets, and the intellectual property values? It's a Not for Profit Organization, so the members have no right to the assets or the IP. The new board of the new NPO will control everything. Innovation, creative process, unique identity, branding ...everything I've paid for with my dues for 27 years...

Huff and a Puff, gone, and 8 people I don't really know get to decide? Is this a threat or an opportunity?  Shall we wipe the slate clean? I have a week to answer. What would you do?

Q: If you purchase a passenger vehicle for $45,000 can you use class 10 rather than class 10.1?  This would allow you to claim CCA in year 1 at 15% on $45,000 + taxes rather than 15% on $30,000 + taxes.

A: Passenger vehicles are considered Class 10.1 if they are over the threshold, which is currently $30,000 plus the taxes on $30,000. A Passenger vehicle is a sub-set of motor vehicles that are specifically exempted from Class 10 if they are over the threshold. Motor Vehicles are Class 10, no matter what price. So, if you want to write something off as Class 10, it's necessary to own and use for the correct % the correct type of vehicle, a motor vehicle. See the CRA vehicle type chart for type and use% requirements

Q: Since the 'bus use in the year bought' is key in determining the type of vehicle, does that extend to the first year CCA is being claimed by the business?  eg.  Sole prop has owned vehicle for many years, but has not claimed CCA in prior years, but wants to start now.
A: The year you put a personal asset into use for the business, that is the year you would acquire the vehicle from yourself at fair market value. See the T4002 guide for more information.

Q: Auto accessories: floor mats, chrome bumpers, leather seat covers...these aren't considered part of allowable expenses, correct?
A: Correct, those are not maintenance and repairs, unless you are replacing something that was damaged
Q: Should vehicles that are <90% business use be shown on the sole prop/partnership books?
A: I record all the assets used by the business in the books in order to account for it's use, and ITC on CCA claims, so I can reconcile to the taxes each year.  In the workshop I showed a spreadsheet where I've reconciled the assets held on the books with the UCC for tax purposes, which may highlight where there are timing or permanent differences between what's recorded for accounting and what's recorded for tax purposes.

Q: Thank you so much for a Herculean effort, Eileen.  Would you consider moving vehicles into its own webinar and simply referring records-keeping attendants to it (as per other available webinars on your site)?  Having isolated and appended it has worked well and the amount of need-to-know stuff lends itself very well to a complete stand-alone topic.
A: Thank you for the lovely compliment. It was a lot of work to put this workshop together. It isn't the first time I've addressed this topic and it won't be the last. The web page in my TaxLinks Pro Portal is an ongoing effort.

As for how the videos are sold, I've done that in a way. If you look at the shopping cart, it's possible to purchase the videos individually or as a set.

Check out my shopping cart under Keeping Records. IPBC members will find that I'm switching to a new system. I'll be providing a promo code and you'll purchase at the main shopping cart on my website with your promo code. I'll be phasing out the old system, probably after tax season. It was getting way to expensive to have double the number of items, given that there are over 50 items for sale on my website, plus bundles, etc.

www.taxdetective.ca/ecommerce.html

http://www.taxdetective.ca/keeping_records_business.html

You move
Your banking information changes
Your marital status changes
Someone in your family who receives benefits is no longer eligible
Someone in your family dies
You leave Canada for more than six months
A child under 18 entitled to CPP benefits enters or leaves your custody

www.servicecanada.gc.ca/my-pension

There's something of note afoot on the CRA website and I haven't seen any official notifications, but then every so often I do take a break so maybe I missed it.

Last fall CRA announced they are going to undertake a review and overhaul of IT Bulletins and IT News. We're getting a whole new collection of technical publications called Income Tax Folios

Here's the introduction and discussion about phasing out IT Bulletins

http://www.cra-arc.gc.ca/tx/tchncl/ncmtx/ntrfls-eng.html

In preparation for that, they have provided a great listing which IT Bulletins apply to that section of the Income Tax Act by section:

It's called IT-INDEX and here's the link:

http://www.cra-arc.gc.ca/E/pub/tp/it-index/it-index-e.html

What's disappointing about the new IT Folio Index at first glance, is that they follow the Indexing system currently in place on the website, one which divides up taxpayers into groups, rather than dealing with topical pursuits, like meals, vehicles, home offices, personal service businesses as a topic, with discussion about the differences between the rules for the various taxpayer groups.

Maybe somewhere in this new work, they'll find a way to cross reference by topic, something which the current website is terrible at.  I don't know how many times I've been researching something under one taxpayer group and found myself under the rules for a completely different group, which has different rules for that topic than the ones for the taxpayer I was hoping to learn about.

Here's the taxpayer groups I'm referring to:

http://www.cra-arc.gc.ca/tx/tchncl/ncmtx/fls/menu-eng.html

I give the team that writes the technical interpretations kudos for some amazing work over the years, and I know how difficult it's been with the myriad of changes in legislation, keeping up must be a huge challenge.

I'm really excited to be participating in this full day on productivity with Steve Dotto and the rest of the crew... check out the action packed day here: www.proTECHtivity.ca

And... sign up using this promo code for 20% off  |  taxdetectiveguest

I'm concerned about CGA's losses in the event of merger. And I don't know what we stand to gain.

Here's what I think we'll lose. Flexibility, cost control and our unique culture and national voice, and I'm sure others can add their concerns. I don't know what I stand to gain, other than maybe not being asked what the difference between a CA and a CGA is. To which I would answer, CULTURE.

Flexibility- I'm concerned that our flexibility in how education is made available will diminish. I'm concerned our flexibility to be mobile within our industry will diminish. One of the best things about being a CGA has always been the flexibility to obtain an education, and to get our practical experience in industry, not just in public practice, but then, we also had the ability to choose public practice later on. We don't know how that will continue or if it can be protected. There are things about this proposed merger that are being kept secret. As public practitioners we haven't been given any information about whether we'll have access to hiring students. I'm told the current CA office training model effectively discriminates against smaller firms.

Cost control - I'm concerned because I believe that CGA's have a better claims experience, and experience lower insurance premiums because of that. With a merger, how much will our cost of insurance go up because we're now associated with the big firms, with their big risk taking ability? How much will our dues be? How much will it cost to convert our websites, office stationery, advertising... who will be making those decisions? There won't be any competition to keep prices down.

Our culture and our national voice - If BC pulls out of CGA Canada, will CGA Canada continue to exist with only a few provincial associations? If we merge, that's the end of BC's financial support for a national CGA Association, and it's efforts in various research, education, lobbying on behalf of CGA's nationally, may be impacted in a very significant way. If you think that's nothing to be concerned about, take a look at how many CGA's there are in BC compared to the rest of Canada. That may change your mind.

It seems that as few as 8 people hold our CGA designation in their hands. I am concerned we don't appear to have a say in whether or not there's a merger. I don't think that's right.

If you're a CGA in BC, and someone who likes to have the choice to have your say, then email me, and I'll send you a form to complete and scan back to require a meeting to require there be a vote before a merger. A number of past CGA BC presidents are very concerned that this time there will be a merger, and it will be without any input from the membership.

And.. there's no reason we can't have an online meeting and electronic polling in this day and age. There's no reason to think that CGAs that aren't in the lower mainland couldn't participate in a streaming video meeting, or other technological wonders of the current age.