tag:blogger.com,1999:blog-4402283548766807872.post905315415090409223..comments2024-03-20T02:26:06.500-04:00Comments on The Blunt Bean Counter: Confessions of a Tax Accountant- Week 6-Spousal RRSPs & Foreign reportingThe Blunt Bean Counterhttp://www.blogger.com/profile/11358868550072516313noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-4402283548766807872.post-76473224659620996992011-04-13T07:15:52.546-04:002011-04-13T07:15:52.546-04:00Tom, thx for the kind words. I like the topic, sor...Tom, thx for the kind words. I like the topic, sort of turns the tables upside down. I will use it in the future.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-1721875600894313422011-04-12T20:43:13.784-04:002011-04-12T20:43:13.784-04:00Hi,
Thanks for your thoughtful answer and for bei...Hi,<br /><br />Thanks for your thoughtful answer and for being blunt; it is appreciated. May I also say that I respect the professionalism in referring me elsewhere, since I don't think I'm a good fit as a client right now. Navigating the world of accounting as a client can be a challenge.<br /><br />The point about being well rounded (e.g. tax advice combined with related services such as estate and wealth planning etc) is also well taken. <br /><br />Please do keep up the blog - I've been reading it for quite some time and find it very interesting, particularly the "day in a life" issues. Might I suggest a post or two on this topic: How To Be A Good Accounting Client (besides paying on time...). <br /><br />~ TomAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-84838525792243663472011-04-11T17:44:58.678-04:002011-04-11T17:44:58.678-04:00Hi Tom:
The simple answer would be that if your r...Hi Tom:<br /><br />The simple answer would be that if your return is essentially all slips, most of the software out there will be sufficient; however, what many people fail to really take into account is that the software only spits out what you put into it, so there is no art involved. For example, even for my clients with slips only (albeit, typically large slips), I may still tax plan for them using say a prescribed interest rate loan to a spouse to split income.<br /><br />I could also answer that income plays a significant role, the higher your income, the more it makes sense to engage an accountant. <br /><br />Finally, I could also answer, that once you have self employment income such as yourself, it makes sense to engage an accountant.I personally try to provide not only income tax advice to my clients, but overall estate and wealth planning advice and that is what you should look for in whomever you engage. The issue is quality and price (I am not cheap as my clients like to remind me) of accountants varies as with any other service provider, so you should ask friends or parents etc who they use and get a recommendation.<br /><br />If I may be blunt, since I am the Blunt Bean Counter, if you called me, I would not take you as a client at this stage (unless I thought your side business had great upside), but would refer you to a sole practitioner who may charge $300 to $450 to do a return such as yours (just guessing without seeing what you have). I think that would be an appropriate first step, you would then grow with the sole practitioner or if your business became successful and you outgrew your sole practitioner, you would then move to a midsize firm like mine. Hope that helps.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-84727449345148138752011-04-11T15:31:10.685-04:002011-04-11T15:31:10.685-04:00Hi!
Here's a question for you... When does it ...Hi!<br />Here's a question for you... When does it make sense for someone to move from doing their own taxes to seeking the services of an accountant? I finished university two years ago and now my tax situation is growing more complex (i.e. I have a full time job and a side business run as a sole proprietor). Last year and this year, a CA friend of the family has helped me out for free but it is a very minimal service level (which is fine since it is free). I have no idea what kind of fees I would like pay for proper tax advice/planning at an accounting firm and when it makes sense to do so.<br /><br />~ TomAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-42724565312679811552011-04-08T12:52:20.786-04:002011-04-08T12:52:20.786-04:00Skuj, you definitely win the prize for the most in...Skuj, you definitely win the prize for the most interactive reader. Good thing I have stats. telling me how many people are reading or I would think you were the only one:)<br /><br />Spousal RRSPs are still useful if (1) you have any fear the legislation will be changed (unlikely) (2) you are over 71 and still working and thus have RRSP contribution room, since you can continue making spousal RRSPs and finally,(3)if both spouses are younger than 65, the pension splitting rules are limited, so a spousal RRSP would provide for for income splitting and smoothing of income pre-age 65.<br /><br />As per my blog March blog "The Kid in the Candy Store", I like RRSPs because they have an "invisible fence" around them that make them more untouchable than TFSA's. However, with a $10,000 a year limit,I think you are correct, people will start to use them as their main retirement vehicle, which may or may not become problematic.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-83293142862183284112011-04-08T09:17:26.329-04:002011-04-08T09:17:26.329-04:00With pension income splitting, do you think it'...With pension income splitting, do you think it's worthwhile to make spousal RRSP contributions at all?<br /><br />Also, assuming the Conservatives win the election and expand TFSAs, would you expect people to make this their primary retirement savings vehicle? Presumably it makes sense to provide for some hardly-taxed RRSP income at retirement, but TFSAs should have a lower total cost compared to RRSPs.theskujhttps://www.blogger.com/profile/11244192903228352082noreply@blogger.com