CPABC in Focus September/October 2016 | Page 48

Accountants We’ve made Private Health Services Plans cookie-cutter simple! Canada Revenue Agency (CRA) Federal Legislation allows business owners to fully tax deduct 100% of their healthcare costs as a business expense using a Private Health Services Plan. Who qualifies? Anyone who owns a business of any size, employees and dependents. No health questions or age limits. This is not insurance. What’s covered? 100% of virtually all dental and medical expenses. Visit our website www.trustedadvisor.ca for a complete list. What’s the cost? There is a one-time set-up fee plus applicable taxes. The additional cost is 10% administration fee plus applicable taxes, depending on which province you live in. Who uses a Private Health Services Plan? Business owners who: > do not qualify for group insurance or find it too expensive > find group insurance coverage too restrictive; i.e.; orthodontics > have sick child or spouse > want front of line treatment > want to write-off child support relating to healthcare expenses > large groups who have been struggling with significant cost increases each year. A partial list of qualified expenses: Acupuncture Alcoholism Treatment Ambulance Anesthetist Attendant Care Birth Control Pills Blood tests Catscan Chinese medicine Chiropractor Crowns Dental Treatment Dental Implants Dental X-rays Dentures Dermatologist Detoxification Clinic Diagnostic Fees Dietitian Drug Addiction Therapy Eyeglasses Fertility Treatments Guide Dog Hair Transplant Hearing Aid and Batteries Hospital Bills Insulin Treatments Lab Tests Laser Eye Surgery Lodging (away from home for outpatient care) MRI Naturopath Nursing Home (incl. board & meals) Optician Oral Surgery Orthodontist Orthopedist Osteopath Out-of-Country Medical Expenses Physician Physiotherapist Prescription Medicine Psychiatrist Psychologist Psychotherapy Registered Massage Therapy Renovations & Alterations to Dwelling (for severe & prolonged impairments) Special School Costs for the Handicapped Surgeon Transportation Expenses (relative to health care) Viagra Vitamins (if prescribed) Wheelchair X rays Note: This is a partial list. All allowable expenses must qualify as outlined in the Income Tax Act Why are your clients doing this with their healthcare expenses? When they could be doing this! Healthcare Costs $1600 Healthcare Costs $1600 (3% of net income) Deduct $1500 Admin Fee (10%) $ 160 Available for credit $100 Tax-deductible total $1760 Tax Credit* $25 Tax Deduction $1760 EXAMPLE: Net income of $50,000 per year with family medical expenses of $1600 *Based on a combined Federal and Provincial rate of 25%. Be the one to advise your clients...or someone else will. The John Robinson Group Inc. June Borlé: 604.874.4429 Fax: 604.873.5600 Toll Free: 1.888.880.2266 Email: [email protected] www.trustedadvisor.ca