Watch Video Here:

https://www.youtube.com/watch?v=YlD9mG9XES4&t=5s

HOME OFFICE EXPENSE

Hi Welcome to Bloom Accounting :)

Today I’d like to address deducting home office expense!

There are several methods available to deduct home office expense and which method to use depends on what type of income was generated?

For example, if you worked form home and earned employment earnings, you can deduct home office expenses with form T777 Employment Expenses
You can deduct a pro-rata portion of your home rent, utilities, strata fees, minor repairs and maintenance. If you earned commission income, you can further deduct property taxes and home insurance.  You will need the employer to sign a form T2200 – Declaration of Conditions of Employment and just keep this for your own records, just in case CRA asks for it, but until then no need to send it in.

Now if all this is too complicated and you prefer a simplified method, for years 2020, and 2021 CRA has provided a T777S form available which allows for a flat rate claim of $2/ per day up to a maximum of $400 and $500 respectively.

Now what if you are a business owner and only paid your self dividends?
Your company can pay you personally rent for home office space. You of course then need to include the rental income in form T776 Statement of Real Estate Rental  and can then further deduct pro-rata portion of interest / rent, repairs maintenance, property tax, insurance etc. 

If you are a sole proprietor and you used part of your home to earn your business / professional income, you can write off portion of your home via Form T2125 Statement of Business / Professional Activity.  Bear in mind, for sole proprietor you can not generate a loss from home office, so the maximum you can write off is limited to the income earned.

With all home write offs, don’t’ go writing off 80% of your home, because this will jeopardize your future principal residence capital gain exemption if you sell your home in the future. Keep the write conservative and document the square footage.

If you need any further information or have any questions, feel free to contact Bloom Accounting.

Cheers,

Jo

Ever wonder how to treat vehicle expenses?

Should you own the vehicle through the company or personally?

What if you use the vehicle for both personal and business use?

Here's a link to a short video with some answers:
https://www.youtube.com/watch?v=76nBIUy9ouo

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The Application for Closure Relief Grant is Open~

How the grant works

If you were recently mandated to close your business or function at 50% capacity due to public health orders, your business could be eligible for a grant up to $20K to help cove expenses such as rent, insurance, wages, and utilities. 

• Gyms, fitness centres and adult dance centres
• Bars, lounges and nightclubs
• Event venues

Applications remains open February, or until all funding is committed.

The application is quite straight forward and a link to the application page below.

Good luck and stay safe!

To apply visit: COVID-19 Closure Relief Grant - Province of British Columbia (gov.bc.ca)

As Omicron variant surges, new restrictions were placed on businesses in the following area:

• Gyms, fitness centres and adult dance centres
• Bars, lounges and nightclubs
• Event venues

There are two levels of financial support to help with the burden from both our Provincial and Federal governments.

British Columbia: Payment up to $10K (see links for more details)

Province of BC Announces COVID-19 Closure Relief Grant - Small Business BC

Federal Lockdown Program for Businesses and Workers:

Government Temporarily Expands Access to Lockdown Program and Worker Lockdown Benefit  - Canada.ca

Our povincial government is offering to reimburse employers for 60% to 100% of eligible traning costs, up to $300K per employer and $10-20K per participant, to either hire new employees or promote existing ones. 

Employers may apply under the following streams:

• Stream 1: C19 Impacted Worker Training Stream
• Stream 2: Workforce Training Stream
• Stream 3: Technical Training Stream
• Stream 4: Foundational Training Stream
• Stream 5: Persons with Disabilities Training Stream

Funding Amounts

What is the maximum reimbursement amount an employer may receive?
Employers are eligible to receive up to $300,000 per fiscal year (April 1 – March 31).

What is the maximum reimbursement amount an employer may receive per participant, per fiscal year (April 1 – March 31)?
The maximum reimbursement amount per participant varies by stream:

For More information go to:
B.C. Employer Training Grant - Province of British Columbia (gov.bc.ca)

Just a reminder to claim your PST rebate on select Machinery & Equipment! 

First application will September 2021!

More Details

Watch: "10 Things Needed to Start a Business in BC"

Click Here to Watch

2021 One Time Small Grants - For City of New Westminster

Do you have a project or initiative that will celebrate our City, lift community spirit, recognize loss and support our collective recovery as we move forward from the pandemic? City of New Westminster would love to work with you! The City’s Summer 2021 One Time Small Grant applications open on Monday, June 28th.

These grants support small projects and events and have a maximum cash value of $3,500, with the possibility of an additional $1,500 in City Services. The grant must be used in 2021. Application deadline: Friday, July 23, 2020. Please see newwestcity.ca/grants for more details. If you have questions please contact grants@newwestcity.ca

https://www.newwestcity.ca/grants

#bloomaccounting604 #smallbusinessyvr #smallbusiness #yvrbusiness #burnaby #burnabybc #burnabybusiness #vancouversmallbusiness #newwestminster #newwest
 #newwestminsterbc

As part of B.C.’s Economic Recovery Plan, the Ministry of Finance has opened applications for two new programs to help corporations recover from the financial impacts of COVID-19.

1. The B.C. Increased Employment Incentive is a one-time refundable tax credit for employers which encourages the creation of new jobs for B.C. workers or increases in payroll for existing low- or middle-income employees in the last quarter ending December 31, 2020.
   
   For more information, including eligibility requirements and access to the application, visit gov.bc.ca/employertaxcredit
2. The B.C. PST Rebate on Select Machinery and Equipment is a temporary provincial sales tax (PST) program that acts like a refund but is separate from the existing PST Refund process.
   
   For more information, including eligibility requirements and access to the application, visit gov.bc.ca/corporatePSTrebate

Hang in there! ...... BC is offering a Grant (yes a grant not a loan) to businesses suffering during this pandemic.

See here for more details and eligibility.

Feel free to call us if you have questions. 778.801.5789.

We are here to help. https://www2.gov.bc.ca/…/economic-r…/business-recovery-grant