My name is Mark Goodfield. Welcome to The Blunt Bean Counter ™, a blog that shares my thoughts on income taxes, finance and the psychology of money. I am a Chartered Professional Accountant and a partner with a National Accounting Firm in Toronto. This blog is meant for everyone, but in particular for high net worth individuals and owners of private corporations. The views and opinions expressed in this blog are written solely in my personal capacity and cannot be attributed to the accounting firm with which I am affiliated. My posts are blunt, opinionated and even have a twist of humor/sarcasm. You've been warned. Please note the blog posts are time sensitive and subject to changes in legislation or law.

Tuesday, July 2, 2013

Gone Golfing

Today will be my last blog post until September. I have decided to take a summer sabbatical from blogging (despite the protestations of my marketing manager who tells me I am breaking every marketing rule in the book by stopping cold for two months).

The BBC at Bigwin Golf Club

The reasons for my sabbatical are threefold:
  1. My wife bought me guitar lessons (Father's Day 2012); something I always wanted to try and I have yet to use one lesson. I hope to start these lessons in the summer or at least in the early fall.
  2. In addition to writing my blog on a weekly basis, I have been attempting to write a book since September. However, to date, all I have is a proposal for a book publisher should I decide not to self-publish, an introduction and two chapters. Thus, I would like to see if I can get some more traction writing the book (subject to how many golf games I can get in). The book, if it is ever completed, is not on tax, although it is financial in nature. Many of the proposed chapters are based on feedback I have gotten from readers to various blogs I have posted.
  3. Since the inception of my blog, I have typically written my blogs at home in my spare time, which has been problematic given I have been very busy at my real job over the last year and a bit. Consequently, I have not been getting enough down time and need a bit of a break. Starting in September, I hope to write many of my blogs during my work week (don't tell my partners this).  
Thus, whether you needed to know or not, those are my reasons for taking a break. Have a good summer and see you in September.

Revised T1135 Foreign Income Verification Form

 

I cannot leave in good conscious without first commenting on the revised  T1135 Foreign Income Verification Form ("T1135"). In the March 2013 Federal Budget, the CRA stated it would be revising the T1135 form to provide more specific information. Well they certainly have. Taxpayer's and their accountants will not be pleased with all the detail required. Here is a link to the new form.

The increased reporting requirements include:
  • The name of the specific foreign bank/financial institution holding funds outside Canada
  • For each foreign property identified on the T1135, the maximum funds/cost amount for the property during the year and cost amount at the end of the year (the old form only required the cost amount at the end of the year if at anytime in the year you exceeded the threshold) 
  • For each foreign property identified on the T1135, the income and capital gain/loss generated (the old form asked for total income or gains from all foreign property in one lump sum)
  • Specific country where each foreign property is located (the old form had pre-defined groupings based on each continent for all the property on an aggregate basis)
This reporting is not only more onerous and potentially more costly (higher accounting fees), information such as the maximum funds or cost amount held during the year will often be impractical to determine. There is one important saving grace to these rules. If the income for a foreign property is reported on a T3 or T5, the details do not have to be reported. This will exempt most U.S. or foreign stocks held with Canadian brokerages; but the details for property held outside Canadian institutions will be burdensome.

The blogs posted on The Blunt Bean Counter provide information of a general nature. These posts should not be considered specific advice; as each reader's personal financial situation is unique and fact specific. Please contact a professional advisor prior to implementing or acting upon any of the information contained in one of the blogs.

20 comments:

  1. Have a great summer, I'm sure you'll come back rejuvenated!

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  2. Have a great summer Mark, love your blog!

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  3. Thanks for the timely post of the T1135. I have a few clients who has to file this every year. Will be proactive in getting them to gather some info ahead of time in preparation for next year.

    Enjoy your well-deserved time off! You'll need to post a sound clip/video of you playing your guitar when you come back! ;)

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  4. Thx Glenn, Anon and KC, have good summers yourselves.

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  5. Might I suggest a summer Twitter rehash of your finest posts? It will help folks who are only now realizing just how great this site is? Easy to do too!

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    1. Hey BCM:

      Thx for the kind words. Neat idea, however, my finest posts total two, who do you think I am, you :)

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  6. Blunt Bean - good luck in all your endeavours! We'll miss your updates, but take some comfort knowing your absence from the blogosphere is only temporary. Work on that book!

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  7. A sabbatical is an interesting idea, Mark. Enjoy!

    I usually take time in the summer to get new initiatives in place for the fall. Maybe that's because golf or guitar lessons would do me no good :)

    As BCM suggest, sending out "best of" tweets is a great idea. You can pre-schedule them.

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    1. Hi Promod, long time no speak.Best of tweets is great idea, except I don't want to deal with my blog or twitter etc for a couple months, a bit burnt out.

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  8. Enjoy my friend!

    Hope to see you again in Toronto this fall at CPFC13.

    Looking forward to your posts when you come back, 110% recharged, or a tad depressed from the golf game ;)

    Take good care,
    Mark

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    1. Hi Mark,

      Is your handicap under par yet? My driver is very erratic this year but going on a golf trip to Predator Ridge in Kelowna later this summer, so at least I will be wild in a nice setting.

      As for Toronto CPFC13, not only am I going, i am scheduled to speak on tax issues for bloggers :)

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    2. Nah, those days are long over.

      I play well, I shoot 77 or 78 these days. I don't practice enough, actually, not at all.

      The driver, are you using a lower-loft? If so, switch to 10.5 degrees or higher. That will help you hit is straighter although you likely know that...

      Our team from work did win the golf tournament this year. We shot -10 in a 4-man scramble so that wasn't bad, especially since one player doesn't play any golf. He bought lots of beer for us instead, which is why we have him on our team!

      Looking forward to your presentation at CPFC13. I'll find out all the mistakes I've been making with this small blog business of mine! :)

      Have a great summer,
      Mark

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  9. Enjoy Predator! Have a great Summer.

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  10. I'm ready to buy your book whenever it's out. Maybe you can write it in the clubhouse after a few round/s. Just don't throw out any napkins. Enjoy!

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  11. Enjoy your summer and look forward to reading more posts when you come back.

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  12. Hope your golf game is improving and have not thrown your clubs at trees in frustration! You go through the bad shots for the feeling of the good ones.

    What you are saying above about the T1135 is that if I own foreign stocks at a Canadian brokerage house and I get a T3 or T5 for all the income then I do not have to file a t1135?

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    1. Hi Anon

      Actually just at Predators ridge in Kelowna and golfed well. Of course came back to TO and golfed like crap. You must have been behind me knowing I throw clubs :)

      I am actually doing a further update on the T1135 in my first post back in Sept. but you will have to file the T1135 if you get T3 or T5 for all the foreign stocks you own, but you will not have to provide details of each stock.

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