What is it?

The concept of "digital awareness" refers to the sense of experience, comfortability, and proficiency related to using basic technology. However, digital awareness is much more than just knowing how to use a computer. A person who is digitally aware is able to comprehend and utilize technology in an ever more connected world. The purpose of digital awareness is primarily to normalize the use of technology.

Why Is Digital Awareness Essential for Surviving the 21st Century?

It's critical that we know how digital devices or platforms function in the 21st century, as so much of our lives depend on them. Since technological advances have led to a more competitive world, it is essential for people to share their talents and showcase their abilities through digital media in order to succeed in today's workplace. Aside from having the technical skills of the field of study or expertise, developing soft skills like digital awareness is just as crucial. Even without the pace of digital evolution, we should be constantly updating our technological skills as the world essentially revolves around digital platforms.

Benefits of Digital Awareness

• Businesses can take advantage of technology to increase growth, develop their customer base, and put a stop to hinder their competition. Technology provides businesses with the tools they need to take their strategies to the next level, reaching goals previously thought impossible.

• The fact that you can make your business more accessible by using digital awareness is another positive aspect of corporate digital awareness. No business can afford to be an outlier considering the amount of time consumers spend online (an average of 6 hours and 58 minutes per day).

• Digital awareness encourages you to make the best of your talents. By being digitally aware, one increases confidence and productivity. Emerging technology has made almost every task more efficient. With the passage of time, technology is only advancing, becoming faster and more effective. Digital awareness provides us with more versatility, whatever industry we may be in, and having digital skills enhances your ability to adapt to changes quickly.

• Everyone is always updated with everything. Whether it be family, friends, or even global politics, digital awareness allows you to better communicate with people and find your way around the best information available.

• When we connect this back to digital tax services and other services provided by the government, digital literacy is important to obtain relevant services effectively. To learn about taxpayer rights, specifically, the benefits and risks of digitization read this article on the Government of Canada website

More Info

• https://www.iavalley.edu/news/2017/04/25/digital-awareness-among-todays-graduates/#:~:text=Digital%20awareness%20means%20that%20one,their%20personal%20and%20professional%20lives

• https://www.youtube.com/watch?v=qxY_etr1Xko

• https://www.ranky.co/growth-hacking-and-inbound-marketing-blog/digital-awareness-an-essential-of-todays-increasingly-interconnected-world#:~:text=The%20term%20%E2%80%9Cdigital%20awareness%E2%80%9D%20describes,relies%20on%20it%20for%20momentum.

• https://www.stopbullying.gov/cyberbullying/digital-awareness-for-parents

• https://www.financialexpress.com/digital-currency/binance-to-create-awareness-about-cryptocurrency-and-blockchain-in-india/2507889/

• https://www.trtworld.com/life/people-spend-daily-average-of-seven-hours-online-worldwide-54765#:~:text=Across%20all%20devices%2C%20the%20average,social%20media%20management%20firm%20Hootsuite

• https://www.tafensw.edu.au/article/-/blogs/3-reasons-why-consistently-improving-your-it-skills-is-important

The information contained was obtained from sources believed to be reliable; however, we cannot guarantee that it is accurate or complete and it should not be considered personal taxation advice. We recommend that clients seek independent advice to suit individual considerations.

Canada has generous tax credits for donors to charities. All charities depend on this generosity of Canadians so they can keep providing social services, enhance the quality of life in their communities, and support the most vulnerable.

Giving feels great and a Charitable Tax Credit can reduce your taxes. Federally, you can receive a 15% tax credit on your first $200 donated and a 29% tax credit on the amounts donated above $200. In addition to the federal tax credit, you can claim a provincial charitable donations credit depending on which province you live in. You can calculate your tax credit by visiting Donation Tax-credit Calculator provided by Red-Cross. The maximum donation credit you can claim is 75% of your net income.

A donation is defined as a gift for which no compensation is given in return and these donations can be money, or it can be anything else of value such as property, stocks, cultural and ecological gifts. The charitable tax credit is available to those who make a donation to a Qualifying Charitable Donee status in Canada. A qualifying charity must be registered with CRA. CRA provides a searchable online database that allows you to confirm if a charity is registered and eligible to issue an official donation receipt. Be aware of donations schemes. Check the CRA link for tips to avoid fraud before you make the donation.

Charitable donations are non-refundable tax credits. If you do not use all your donations for the year, you can carry forward the donation credit for up to 5 years. You can claim the charitable tax credit when filing your taxes by filling out the Schedule 9 form. You need to have an official receipt and any other supporting documents. If you are filing your taxes electronically, you don’t need to submit the official receipts or any supporting documents. If your donations are contributed through your employer or pension, you can check your charitable donation on the income tax slips such as T4, T4A, T3, T5013. CRA expects you to keep all your documents for 6 years in case CRA would like to audit this tax credit. Official donation receipts for income tax purposes must contain the following information:

• A statement that it is an official receipt for income tax purposes

• Name and address of the charity as on file with the CRA

• Charity’s registration number

• Serial number of the receipt

• Date the donation was received

• Day on which the receipt was issued if it differs from the day of donation

• Full name, including middle initial, and address of the donor

• Amount of the donation

• Value and description of any advantage received by the donor

• Eligible amount of the donation

• Signature of an individual authorized by the charity to acknowledge donations

Charitable donations can be shared between spouses; you can transfer all or some of your charitable donations to your spouse. It is more beneficial if you combine both donations and claim them on one spouse to have better credit. If it is your first time claiming charitable donations, you can claim a first-time donor’s super credit (FDSC) which in return gives you an extra 25% on your tax credit. Keep note, the additional credit is only given on donations up to $1,000.

The information contained was obtained from sources believed to be reliable; however, we cannot guarantee that it is accurate or complete and it should not be considered personal taxation advice. We recommend that clients seek independent advice to suit individual considerations.

Do you know anyone who has made a long-term real estate investment and continuously lost money? Probably not. That's because, as long as you invest in a region with a strong economy, real estate is one of the safest asset types you can buy for the long term. The problem with the land is that it is not something that continues to be produced, making it a valuable asset.

How to Get the Most out of Real Estate Investing

Purchase a Primary Residence

While your primary property is an asset, some people believe it should not be considered an investment. The fundamental reason is that it does not generate cash flow. Regardless of your position on the subject, the home you reside in has the potential to appreciate significantly in value over time, especially if you purchase in a rising property market.

Renting out a portion of your House

Converting your primary residence into an income-producing real estate investment is perhaps the simplest way to own income property. This can be accomplished in a variety of ways. Renting out a portion of your house also known as house hacking is a common practice. House hacking is when you rent out parts of your primary dwelling, such as a bedroom or a basement apartment, while you are still living there.

The rental unit(s) generates money that helps to offset the expense of your mortgage. It's a fantastic approach to boost your income flow while also increasing your net worth. Short-term rentals, such as Airbnb, can be considered house hacking as well.

Invest in a Rental Property by Converting your Primary Residence

If house hacking is not for you, you could always buy or rent a new home and turn your old one into a rental property. There are a couple of benefits to doing so. You avoid the cost of purchasing a rental property from the ground up because you already own the home. On rental properties, most lenders want a down payment of 25% or more. You also have to discover a suitable home and go through the mortgage approval process. It takes a lot of effort.

However, if you intend to do so, be sure that your current home is suitable for rental purposes. Consider asking yourself the following questions: Is it possible to generate a positive cash flow? Will the monthly rental revenue, in other words, be sufficient to cover the mortgage, property taxes, and any other connected expenses?

Is it in the right part of the city? Is there a need for rental units in your neighborhood? Find out what the vacancy rates are and how likely it is that the home will be always occupied. A vacant rental property can rapidly become a hardship.

Invest in a Residential Property Flip

If you have ever seen HGTV, you're aware of what it means to "flip" a house. House flippers make money in real estate by purchasing an investment property with upside potential, pouring substantial sums of money to increase the property's value, and then selling for a profit. Some house flippers will keep the property as a rental, but the goal is usually to get in and out quickly.

House flipping might be risky, but it can pay off attractively if done correctly. To be successful, you will need specialist knowledge of the local real estate market (or the assistance of someone who does) as well as extensive renovation experience. While some house flippers can get away with merely aesthetic improvements (i.e. interior/exterior paint, landscaping, and staging), others invest in costly and time-consuming structural improvements in the hopes of generating a profit.

In most property flipping situations, the goal is to make a substantial profit sooner than later. It is the only rationale for taking such a big risk because the consequences could be disastrous.

Commercial Real Estate

Commercial real estate ownership is a less common but very profitable way to invest in real estate. A single-unit retail storefront to massive office complexes and shopping malls are all examples of commercial real estate. Commercial real estate is used by businesses to operate retail stores, restaurants, offices, and manufacturing facilities.

Higher rental margins, the stability of long-term leases, and the ability to diversify are all advantages of commercial real estate investing. Commercial properties, on the other hand, necessitate extensive and expensive, care as well as a large time investment. There is also the issue of responsibility when it comes to owning public structures.

Invest in Real Estate Investment Trusts (REITs)

REITs, or Real Estate Investment Trusts, are pooled assets that allow you to buy and sell real estate on the stock exchange. The benefit of including REITs in your portfolio is that you can profit from the real estate market's growth without incurring the high costs and hassles of purchasing individual properties. You can own hundreds of residential and commercial addresses across Canada through a REIT.

Tax Implications of Investing in Real Estate

If you understand the Canadian tax regulations that relate to real estate investments, owning property in Canada can be rewarding.

Taxes on Property

When you acquire a home, you must pay a provincial land transfer tax, which varies by province, but is typically 1% on the first $200,000 and 2% on the remainder. If this is your first time buying a home in Canada, you may be eligible for some tax exemptions. Municipalities also charge annual property taxes based on the assessed property value, which is the market value.

The federal Goods and Services Tax (GST) applies to new house purchases, however, if you expect to reside in the home or rent the home, you can get a partial rebate if you buy a new or builder-renovated property. Resale properties are exempt from the GST.

Taxes on Rental Property

The Canadian Revenue Tax Legislation requires the remittance of 25% of gross property rental income each year. Non-residents, on the other hand, can fill out an NR6 form and pay 25% of their net rental income. You may be able to reclaim previously paid taxes if the rental property has a net loss. An important thing to consider is whether the income you earn from the space in your home will be reported as business or rental income on your personal income tax return.

To gain rental revenue, you can deduct two categories of incurred expenses: current running expenses and capital expenses. You cannot deduct the cost of furniture or equipment for a rental property from your rental income for that year. However, because these items decline in value, the cost can be deducted over time. The capital cost allowance is the name of the deduction (CCA).

If the property is an investment property, property taxes, mortgage, bank loan, and line of credit interest are tax-deductible in Canada.

Disposing of your Property

If you are a Canadian resident and the property is your primary residence, you will not be taxed on the capital gains when you sell it. Any residence can be designated as a primary residence if you "ordinarily inhabit" it. Seasonal homes, such as a cottage or a mobile home, may be eligible for the designation. Each year, a family unit can only have one primary dwelling. This stipulation has significant ramifications. If you own multiple properties, for example, you must choose one to identify as your primary residence based on the capital gains for that year.

If you live in Canada and are a resident, but the property was not your primary residence for the time you owned it, you must prorate the capital gain for the years you did not use it as your primary residence. A change of use, such as from rental to primary residence, may result in a "deemed disposition," triggering capital gains taxes. You can, however, choose to wait to recognize this gain until you sell the house.

When a non-resident sells a property in Canada, the Canadian government deducts 50% of the transaction price as a withholding tax. The capital gain must also be reported to the Internal Revenue Service by American residents (IRS). If the profit was taxed in Canada, however, it can be claimed as a foreign tax credit. When a non-resident sells a property in Canada, the seller must give the buyer a CRA clearance certificate. Without this certificate, the buyer can keep a portion of the purchase price because he or she may be personally liable to the CRA for any unpaid taxes owed by the non-resident.

Conclusion

A fundamental transformation in the workplace has reverberated throughout the real estate industry. There have been views on how long those changes will last and what the future of work will look like, there is no doubt that the workplace will appear different than it did before 2020. This will have implications for business decisions across key asset classes as well as for the users of real estate themselves.

A shifting landscape for offices, changing migration patterns, and a greater focus on mixed-use communities are all key developments. Low-interest rates, increased savings by some Canadians during the epidemic, and a desire for additional living space have all helped to drive housing demand and, as a result, property prices and affordability issues.

The information contained was obtained from sources believed to be reliable; however, we cannot guarantee that it is accurate or complete and it should not be considered personal taxation advice. We recommend that clients seek independent advice to suit individual considerations.

The information contained was obtained from sources believed to be reliable; however, we cannot guarantee that it is accurate or complete and it should not be considered personal taxation advice. We recommend that clients seek independent advice to suit individual considerations.

This one question that always comes forward when saving for the future is whether an individual should contribute to the Registered Retirement Savings Plan (RRSP) or Tax Free Savings Account (TFSA) account and what is the difference in both investments. The fact is, both plans have some tax advantages and growth opportunities. Below provides an overview to help you decide and make the most out of your savings.

First, you need to define the reason for savings, your time horizons, your current and future tax liabilities. Whether you start with an RRSP or TFSA depends on factors like your reason for saving, your time horizon, and your current and future tax rates. Below we offer an in-depth RRSP and TFSA comparison to help you make the right call.

In general terms, RRSP’s are better suited for you if you would like to save for your retirement, your first home, or for your education. Whereas the TFSA provides advantages for your short-term goals such as a vacation, home renovations, or any major expense foreseen in the near future.

RRSP and TFSA accounts have different tax implications. An RRSP account offers a tax deduction when you contribute, and with a subsequent tax implication once you withdraw money from the RRSP account. This concept is also called tax deferral. On the other hand, the TFSA has no tax implications of contributing or withdrawing money from this account.

Growth on both accounts are tax-sheltered, which is helpful to build your saving goals quicker than keeping your money in simple savings or checking account. There is set contribution limits on both accounts and CRA allows carrying forward unused contribution room, with implications if you over-contribute.

continue reading ->

When you're just starting out, it may seem as if operating your firm as a sole proprietorship or partnership is the most straightforward and easier option. To be honest, incorporation may seem like an expensive and daunting process because of all the steps that occur in the process, i.e.:

• Consulting with an accountant or attorney

• Completing and filing papers

• Paying incorporation costs

• Registering with the CRA

The main advantage of incorporating a business is that it limits your liabilities. When you operate a small business, you will invest a significant amount of money not just in getting it off the ground, but also in keeping it running smoothly.

As the owner, you are liable for any debts or losses your company incurs along the way. When you form a corporation, however, you are usually solely held liable for the amount of money you personally invest. Your personal assets can't usually be utilized to pay off your company's obligations and liabilities.

Compared to sole proprietorships, incorporating has various advantages. Here are some of them:

Transferring Ownership is a lot Easier

A company is a separate legal entity from its owners, and its assets are not directly owned by them. Rather, they own stock in the corporation, which owns the assets. This simplifies the process of transferring ownership interests.

It is easier to attract investments when you have the ability to transfer ownership. For example, venture capital firms and angel investors want to know that they can get in and out of an investment on pre-determined terms without being held up by a jumbled organizational structure.

Credibility is Instant

Incorporating a company can give your company an instant boost of credibility. Investors, lenders, suppliers, consumers, and employees will quickly recognize that you are serious about the long term.

However, incorporating a firm comes at a higher cost and requires more time and work. A corporation's accounting records must be kept separate from those of its owners. Corporations must also pay annual registration costs and prepare financial statements and tax filings on their own. These inconveniences, however, are well worth the work if your goal is to build a long-term, sustainable firm.

Access to Capital and Grants will be Improved

Corporations will get increased attention from venture capital firms or angel investors, who may be asked to contribute to the company's expansion. It can also boost your company's credibility, making it easier to obtain finance or negotiate with a supplier.

Only incorporated businesses are eligible for a number of loan and grant programs offered by the Canadian government so this on its own would be an added benefit for your business.

Reduced Tax Rates

Corporations may pay less tax as a result of their incorporation.

"Corporate tax rates are generally lower than personal income tax rates," says Stefanie Ricchio, CPA and founder of the consulting firm The Modern Accountant.

There are a number of drawbacks to incorporating a firm that owners should be aware of before deciding to do so. Here are a few:

Can be Expensive

When compared to other forms of business structures, incorporating a company will take longer to get up. Incorporation also comes with increased start-up costs. A corporation is a significantly more sophisticated legal form than a partnership or sole proprietorship, and thus it is more expensive and difficult to set up.

When forming a corporation, you'll need to file papers with your state's corporation chartering agency, which can take a long time and an annual fee is payable.

Ownership Deficit

When you form a separate corporate organization, you'll need to open separate credit and bank accounts for your company, which means you'll need the proper business identity. Your personal identification will not suffice, and you will not be able to combine business and personal funds once you have incorporated.

Furthermore, because forming a corporation may entail the sale of stock, shareholders may become the owners of your company. This means you won't have complete control over the company's operations. When it comes to electing the board of directors who will govern the company, all shareholders will have a say.

True, there are some disadvantages to being an incorporated company as mentioned above but whether or not to incorporate your company is a complicated decision that involves a number of factors. As a result, it's always a good idea to talk to an accountant about your alternatives and figure out what's best for you.

More Info

• https://smallbusiness.chron.com/disadvantages-incorporating-business-363.html

• https://www.bdc.ca/en/articles-tools/start-buy-business/start-business/incorporating-business-key-advantages-entrepreneurs

• https://blog.mycorporation.com/2017/09/why-you-should-incorporate-your-business/

The information contained was obtained from sources believed to be reliable; however, we cannot guarantee that it is accurate or complete and it should not be considered personal taxation advice. We recommend that clients seek independent advice to suit individual considerations.