While corporations have many benefits, there are also some drawbacks. Generally, losses incurred by your business can be offset by personal income. If you’re incorporated then these losses cannot offset.
So you are probably asking yourself can I deduct home-office expenses? Those who run a home office and use a portion of their home as a designated office space are eligible to claim relevant tax deductions. The primary condition is that the home must be your primary place of business.
If you have a business then it might be a good idea to consider incorporating into an LLC otherwise known as a limited liability corporation. There are a number of different benefits for LLCs such as the low corporate tax rate and limited liability protection.
If you use a vehicle for work and would like to avoid paying tax on it. It is important that you do not pay for those related expenses through your business account. Rather, you should pay for it out of your personal account. This way it becomes a taxable benefit for you on your personal tax return.
Are you looking for tax tips for sole proprietors? Sole proprietorships can utilize a number of different strategies to save money and reduce their tax obligations. These include taking advantage non-capital losses, paying wages to family members for income splitting, claiming relevant business expenses and incorporating your business.
Deciding on the right compensation strategy between salary and dividends can be quite tricky. There are advantages and disadvantages with each approach and this also varies depending on one’s situation. So the best strategy in order to save money involves a combination of both tailored to the individual’s situation.
If you feel that you are over paying on your property tax, then there are a few options that you can take. Do you want to learn how to lower and defer property taxes? You can appeal the assessed value of your home and thereby lower your tax liability. Additionally, you can also take advantage of the provincial land tax deferral programme as well the Ontario senior homeowner’s property tax grant.
Do you want to learn how to reduce risk of being tax audited? Tax audits are a legitimate concern for everyone. However, your risk can be greatly reduced by avoiding key audit triggers such as reporting consecutive years of business losses and making high expense claims. Additionally, you should also ensure that you have supporting documentation for your expense claims.
Are you looking for tips for filing 2014 personal tax return They include maximizing eligible personal tax credits, filing a tax return despite having low or zero income, reporting all T-Slips, and transferring all unused credits to your spouse.