January is the start of a new calendar year. It is also the start of a new tax year, which means that it will soon be time to file tax returns for the previous one.
Tax returns for most Canadians are due by April 30. Medical residents with moonlighting income (or who have spouses with self-employed income) have until June 15 to file their tax returns, but must still pay their taxes by April 30 to avoid interest charges.
Income tax is a huge, complex topic. The scope of this discussion is restricted to some items of interest that may directly impact current medical residents in the filing of their 2014 personal taxes. It is impossible to cover every potential situation. Information on more complex issues such as preparing your first income tax return after residency or incorporation are available on this site. Continue reading
Transitioning to medical practice from residency is a big step.
Completing the requirements of the program, writing certification exams, finding work, getting licensed, applying for hospital privileges, setting up CMPA coverage, etc. There is so much to be done before you can start practicing.
Some things get pushed aside until it’s time to deal with them.
Income tax is often one of those things. And with April 30 approaching, it’s now time.
I’ve been an accountant for over 20 years and have worked primarily with physicians, dentists and other professionals for most of my career. Over the years, incorporation is the subject I’ve been asked most about.
- Should I incorporate my medical practice now?
- How do I incorporate?
- How does a medical corporation help me?
The questions are almost endless. And this blog post would be endless if I tried to address all aspects of incorporation. For this post, I will provide an introduction to incorporation. In the coming months I’ll expand on this basic information and show why most physicians should be incorporated. Continue reading
RRSP contributions made in the first 60 days of 2014 are eligible for deduction on your 2013 personal income tax return. This year, the contribution deadline for a 2013 RRSP deduction is March 3, 2014.
However, if you want your CPRSP benefit payments to be deductible on your 2013 personal income tax return, you must submit your CPRSP application to the BCMA by January 20, 2014. Continue reading
The Contributory Professional Retirement Savings Plan (CPRSP) is one of several benefit programs administered by the BCMA that are available to BC physicians through the Physician Master Agreement.
The other benefit programs are the Physician Disability Insurance Program (PDI), the Continuing Medical Education (CME) Fund, the Canadian Medical Protective Association (CMPA) Rebate Program, and the Parental Leave Program (PLP). These additional benefits will be the subject of future posts.
The CPRSP assists physicians with saving for retirement by providing additional contributions to a doctor’s personal or spousal RRSP. If the physician is incorporated and has an Individual Pension Plan (IPP), the payment is made to the medical corporation. Continue reading
The British Columbia Medical Association (BCMA) recently released the Contributory Professional Savings Plan (CPRSP) entitlement amounts for 2013. If you are an eligible physician, you should have received your personalized application with entitlement information by mail or email. If you have not received your information yet, check your BCMA online account or contact the BCMA benefits department.
I have posted a sample application form along with some notes. Continue reading
I’ve been writing a blog for business professionals for a while now, but I find I am getting a lot of questions geared to one profession or another.
Different professions have many tax, accounting, and financial planning similarities, but there are also many issues specific to a particular profession.
With this new blog, I will be discussing topics of interest to physicians and medical residents, including BCMA benefits, incorporation, group practices, income tax tips, insurance, etc.
I’ll continue to maintain the Professional Edge with more general information, but this new blog will be aimed specifically at physicians.
I hope you find this new format informative and relevant.
If you have any questions about topics that I discuss, or have a topic you would like to see covered, please email me at firstname.lastname@example.org or leave a comment on one of the posts. I monitor my blogs regularly and try to respond within a day or two.