Hodge Podge

December 2019

All of your December updates are here!

Donations

 

Remember that donations must be made and received by the charity prior to December 31, 2019 to be eligible for a deduction against your 2019 taxes.    Donations can be made in cash or in kind.   If you are thinking about donating and have a stock portfolio with accrued capital gains, it is better to donate those stocks to the charity than it is to cash them and then donate.   

 

If you donate the stock your capital gain will be eliminated and you still receive the donation credit for the fair value of the stock donated.   It is a win win for you and the charity.

Going South for the Winter?   You might want to read this!

 

Many of our clients like to travel south of the border to enjoy a much milder winter season than we enjoy here.      Due to the excitement and the relaxation time involved with such a trip, we forget that we have entered another country and are living there for an extended period of time.      Under our tax rules and those of many countries, the presence in a country for more than 183 days typically changes your tax status with that country.    The US is no exception to this rule.     In fact the IRS is very interested in your sojourn to their country and keeps track of your ins and outs.     If you are in their country for more than 30 days in a given year, you have to determine if you meet their substantial presence test.    This test looks at your presence for the past three years and a calculation is made to determine if you have exceeded 182 days over that three year period.   If you have then you are required to file a US tax return or make a declaration that you have a closer connection to another country and therefore not required to file a US tax return.   This closer connection declaration is made on Form 8840 and is due June 15th following the taxation year in question.   

If you have not kept track of your trips to the US, you can go online using the information below and find out the travel made to the US and then complete your calculations:

 

Go to :  https://I94.cbp.dhs.gov/I94/#/home

Mrs. Claus Cranberry Whiskey Cocktail

Ingredients

2 Ounces of Cranberry Juice
Cinnamon Sticks or 1/4 Teaspoon of ground cinnamon
2 Ounces Whiskey or Bourbon
1 –2 Tablespoons of Rosemary Simple Syrup

Instructions

Break the cinnamon stick in half or add in 1/4 teaspoon of ground cinnamon to shaker. Fill shaker with cranberry juice, whiskey, rosemary simple syrup and ice. Shake for 30 seconds. Pour into glass. Serve with rosemary sprig and sugared cranberries. (Dip cranberries + rosemary sprigs into water and sprinkle with sugar. Let dry for a holiday sugared look!).

*Note: to make rosemary simple syrup, bring 1 cup of water and 1 cup of sugar to a simmer. Remove from heat and add in three 5-inch rosemary sprigs. Steep for 20 minutes and strain mixture into a jar.

 

https://thecollegehousewife.com/2018-11-28-mrs-claus-cranberry-whiskey-cocktail/print/8707

 

 

Tax Loss Planning

 

If you have losses in your portfolio that you want to take advantage of to reduce any capital gains included in your income during the year, you must trade these on or before December 27, 2019 to be able to utilize them for your 2019 taxes.

 

Remember that if you desire to repurchase these stocks, you must wait 30 days before repurchasing them, or the loss created on the sale will be denied and added back to your original cost base for a future sale.    This is called a superficial loss.

Did you know, that a “jiffy” is an actual unit of time?  It amounts to 1/100th of a second!

Asset Purchases

 

If you are considering adding new equipment to your business in the early part of 2020 it may be wise to make that purchase before the end of the year if you have a calendar year end.  As long as the asset is available for use, you will pick up a half years worth of depreciation on the asset for tax purposes.

Retirement Savings Plans

 

For RRSP’s you have until February 29, 2020 to make your contribution for the 2019 year.    Please take note of the date as 2020 is a leap year.

 

If you turned 71 during the 2019 year, you need to make sure you have converted your RRSP funds to a Registered Retirement Income Fund (RRIF) before the year end is complete.

 

For TFSA contributions, if you have not made your contribution for the current year, your limit for 2019 is $6,000.   If you miss contributing before the end of 2019 you will still carryforward this room into 2020.

 

For RESP’s your required contribution to obtain the full government grant for 2019 is $2,500.  

Chocolate Kiss Cookies

Chocolate Kiss Cookies-decadent chocolate cookies rolled in sprinkles and topped with a chocolate kiss. A fun cookie for the holidays or any day!

Prep Time 15 minutes

Cook Time 10 minutes

Servings 25 cookies

Ingredients

  • 1 cup all-purpose flour
  • 1/2 cup Dutch process or unsweetened cocoa powder
  • 1/4 teaspoon salt
  • 1/2 cup unsalted butter softened
  • 2/3 cup granulated sugar
  • 1 egg yolk at room temperature
  • 2 tablespoons milk
  • 1 teaspoon pure vanilla extract
  • 3/4 cup nonpareil sprinkles
  • 25 Hershey's Kisses unwrapped

Instructions

*Preheat the oven to 350 degrees F. Line baking sheets with parchment paper or Silpat baking mats

and set aside.In a medium bowl, whisk together the flour, cocoa, and salt. Set aside.

*In the bowl of a stand mixer or using a handheld mixer, beat the butter on medium-high speed until smooth, about 1 minute. Add the sugar and beat on medium-high speed until creamed, about 2 minutes. Add the egg yolk, milk, and vanilla extract, and beat on high speed until combined, about 1 minute. Scrape down the sides and up the bottom of the bowl and beat again as needed to combine.

*Add the dry ingredients to the wet ingredients and mix on low speed until combined.

*Pour the sprinkles into a small bowl. Roll the balls of dough, about 3 teaspoons of dough per cookie, then roll each ball into the sprinkles to coat. Place the dough balls on the prepared baking sheet, 2 inches apart.

*Bake the cookies for 10-12 minutes.

*Remove the cookies from the oven and allow them to cool on the baking sheet for 5 minutes. Press the chocolate kisses into the center of each cookie. Transfer the cookies to a wire rack to cool completely.

*Note-cookies will keep in an airtight container at room temperature for up to 1 week.

https://www.twopeasandtheirpod.com/chocolate-kiss-cookies/

The staff at KD Wray Chartered Professional Accountant want to wish you a safe and Happy Holiday!

Our office will be closed December 24th, 2019 at noon until January 2nd, 2020.

22 Paris Street, PO Box 519, Alliston, ON L9R 1V7
705-435-7227

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