JD Tax & Accounting Practice Areas: Expert Solutions for Every Financial Need
#106 - 20644 Fraser Hwy.
Langley, B.C.
V3A-4G5
JD TAX & ACCOUNTING
Our firm specializes in taxation services for corporations, individuals, and trusts. Whether you are a shareholder in an incorporated business or an individual who has fallen behind on multiple years of back taxes, we are here to assist you.
Year - End Tax Accounting
Annual financial statements are mandatory for all corporations to comply with the GIFI section of the T2 Corporate Income Tax Return. While not technically required for sole proprietorships, financial statements are a valuable, yet often underutilized, business tool. A balance sheet provides a snapshot of the company's assets versus its liabilities at the year-end date. An income statement is a periodic report that details the profit or loss over a specific time frame. These financial statements are crucial for management, lenders, and potential buyers to assess the health and operations of the business. We specialize in preparing financial statements for tax and management purposes.
Corporate Income Tax
Corporations, as separate legal entities, are also distinct entities for tax purposes. The T2 Corporate Income Tax Return is significantly more complex than the T1 Personal Income Tax Return used by individuals. It requires careful consideration by your accountant to decide whether owner withdrawals should be classified as a salary (reported on a T4 slip) or as dividends (reported on a T5 slip). Often, a combination of both salary and dividends may be the most beneficial approach.
There are several tax advantages to operating as a limited company. One of the primary benefits is the small business deduction, which is available to corporations engaged in active business activities. Additionally, there are significant tax incentives such as the tax-free disposal of qualifying small business shares, with capital gains exemptions up to $1,250,000.00 for 2024. These benefits make corporate structures an attractive option for business operations.
Personal Income Tax
Every resident of Canada with taxable income is required to file an annual income tax return with the Canada Revenue Agency. Although many tax situations may appear straightforward, the benefits of hiring a professional to manage your tax filings are well-documented. Individuals untrained in the complexities of Canadian income tax often fail to fully utilize all available deductions and credits. This oversight can lead to paying more tax than necessary. For more complicated financial situations, the expertise of a trained professional is indispensable to ensure accuracy and optimize tax savings.
Trust & Estate Taxation
A trust is a legal arrangement where property is managed by one party (the trustee) for the benefit of another (the beneficiary). The most familiar type of trust, often established upon death, is known as a testamentary trust. It is also possible to establish a trust during one's lifetime, known as an inter-vivos trust, though this requires careful planning to avoid unintended income tax implications.
Trusts report their income through the T3 Trust Return, which details the income within the trust for a specific reporting period. Given their complexity and the specialized legal knowledge required to manage them effectively, it is highly advisable to consult with a professional experienced in trust and estate taxation. This ensures that the trust is managed efficiently and complies with all tax regulations.
Welcome to JD Tax & Accounting, a cornerstone of financial expertise and dedicated customer service right in the heart of Langley, BC. For over 30 years, our office has stood on Fraser Highway, a familiar and trusted presence in the community. Our commitment to excellence is only matched by our dedication to the personal touch that each client deserves.
At, JD Tax & Accounting we understand that accounting goes beyond numbers. It's about building lasting relationships and providing tailored solutions that grow with your personal and business needs. Our team, a dynamic blend of seasoned experts and innovative newcomers, ensures that we bring both experience and fresh perspectives to every financial challenge. This synergy is vital as we navigate the constantly evolving financial landscapes, offering a range of services from tax preparation to comprehensive business accounting.
Technology is at the forefront of what we do. We leverage cutting-edge software and tools to ensure accuracy, efficiency, and security. Our clients benefit from real-time updates, digital document handling, and streamlined processes that make financial management accessible and understandable. Whether you're a local business or an individual, our team is always ready to assist with a smile and the professional acumen to back it up, ensuring that every interaction is both productive and pleasant.
Responsive and proactive, our approach to customer service sets us apart. We pride ourselves on our ability to respond quickly to your inquiries, address your concerns, and anticipate your needs before they become challenges. This commitment to service is why so many of our clients have trusted us for decades and continue to recommend us to their friends and family.
Join us at JD Tax & Accounting, where your financial health is our top priority, and discover the difference our dedicated team can make in achieving your financial goals.
Bookkeeping Services
Bookkeeping is the fundamental component of financial accounting. Essentially, it involves recording financial transactions as debits and credits in various general ledger accounts. A well-structured double-entry bookkeeping system is crucial for any business that needs to produce accurate annual financial statements.
The main advantage of a solid bookkeeping system lies in the accuracy it brings to financial reporting. While a sole proprietorship may not be legally required to maintain a double-entry system, implementing one can greatly improve internal controls. A reliable bookkeeping system helps in reconciling bank records with accounting entries, which is vital for preventing issues like double entries, missing entries, and errors in data entry. This careful monitoring ensures transparency and precision in financial management.
GST/HST Returns
The GST (Goods and Services Tax) return involves calculating the difference between the GST collected and the GST paid out over a specific reporting period. In Canada, all businesses generating over $30,000 in taxable sales annually are required to register for GST and charge it on their products and services. Those with taxable sales below this threshold can opt to register as a small supplier.
GST is generally applicable to all products and services, but the Excise Tax Act introduces several complexities with numerous exceptions. For instance, certain items and services are exempt from GST, while others are classified as zero-rated. This classification is crucial because it affects how businesses claim input tax credits, which are deductions businesses can take for the GST paid on purchases related to their sales activities. Understanding these distinctions is essential for accurate GST reporting and compliance.
Additionally, businesses have the option to use the Quick Method of accounting for GST/HST. This simplified method allows businesses to pay GST/HST at a reduced rate based on their gross revenue, which can streamline tax calculations and potentially reduce the amount of GST/HST owed. The Quick Method is particularly beneficial for smaller businesses looking for easier tax handling and reduced paperwork.