Whether this is the first time you have been selected for an audit, or you have undergone previous audits by the CRA, there are a number of key actions by the taxpayer that can minimize the effort and time invested, reduce the potential for reassessment and allow you to exercise some control over the conduct of the audit. 

Tax audit often leaves tax payers overwhelmed with feelings of anxiety and fear which make it difficult for them to function well. While the CRA allows you to represent yourself in a CRA audit, it is in your best interest to employ a highly experience CPA of Canada.

The sale of a capital property for an amount greater than its cost generally leads to a capital gain, 50 percent of which is taxable in Canada. If the property is the seller’s principal residence, the gain resulting from the disposition can be sheltered by the principal residence exemption (“PRE”). Only taxpayers who are individuals or certain trusts are eligible to claim the PRE.

In order to qualify as a principal residence, the property must meet certain conditions. Generally speaking, the property must be owned and ordinarily inhabited by a Canadian resident individual or certain trust in the year. Only one property can be designated as the taxpayer’s principal residence in any given year.

New Proposed Measures

Do I need a Chartered Professional Accountant (CPA) ? This is one of the most common questions we get. To answer, we came up with 10 reasons why you should seriously think about hiring a CPA.

Whether you’re looking to save some money, prepare your taxes, manage your investments, or plan your retirement, a CPA can help.

There are at least 10 good reasons why you probably need to hire a CPA. 

 

1. To Save Money and Time

If time isn’t on your side, a CPA may be your new best friend. Not knowing what you are doing can be a real time waster.

 Why do you need a CPA?

Chartered Professional Accountants (CPAs) act as advisers to individuals, businesses, financial institutions, non-profit organizations and government agencies on a wide range of financial matters. Today, many individuals and businesses turn to CPAs for help with tax preparation, personal financial planning, auditing services, and advice on developing effective accounting systems.

What can a CPA do for you?

CPAs are no longer just number crunchers and tax preparers. They are business and financial strategists who help chart the paths of businesses and individuals. Individuals turn to their CPAs for tax and financial planning services, investment advice, estate planning, and more.