Are you looking for ways to save taxes in Canada?
As providers of services regarding income tax preparation Oakville, we are aware of many ways in which one can save taxes in Canada.
We have saved thousands of dollars in taxes for our clients and decided to share some of our knowledge concerning this important matter.
Some of the best ways to save taxes in Canada are described below.
1. Open a Tax Free Savings Account (TFSA)- Income Tax Preparation Oakville
A TFSA is exactly what it sounds like: a mechanism to earn tax-free investment income / gains on funds invested. A TFSA could be an interest bearing bank account, mutual funds or stocks.
The maximum annual contribution limit for a TFSA is $5,000. Contributions to a TFSA are not tax deductible and withdrawals from a TFSA are tax-free.
As a Chartered Accountant who is learned in the domain of income tax preparation Oakville, I have recommended TFSA’s to my business and personal clients, because they are a tax efficient way to earn investment income.
For further information, please see the article Learn everything about a TFSA.
2. Create a Family Trust- Income Tax Preparation Oakville
Consider creating a family trust to hold investments such as real estate, stocks, or bonds on behalf of your children and family members. Any income or gains generated by the investments inside the family trust can be distributed to them.
This is an excellent way to split income with your family, as well as pass on the growth in your investments to them.
You and your spouse will generally be trustees of your family trust, thereby maintaining control over the assets held inside the trust.
“I have structured many family trusts for my clients who are individuals,” says Allan Madan (professional accountant, well versed in the area of income tax preparation Oakville).
For further information on how family trusts are used to save tax for Canadian businesses, please see Estate & Succession Planning for Canadians written by Allan Madan, a professional accountant who provides income tax preparation services in Oakville.
3. Deduct Income Tax Preparation Fees- Income Tax Preparation Oakville
Fees paid to an accountant to prepare your personal tax return can be deducted for tax purposes against any investment income, business income or rental income that you have earned in the year.
Make sure to keep a copy of your personal tax return bill you received from the company which provided you with the income tax preparation service.
4. Contribute Non-Cash Assets to Your RRSP- Income Tax Preparation Oakville
You’re probably asking yourself, “How can I contribute non-cash assets to my RRSP?”. The Canada Revenue Agency permits taxpayers to contribute the following non-cash assets to your RRSP:
- Mutual funds
- Guaranteed investment certificates
- Shares of public companies
- Corporate bonds
- Mortgages on real estate in Canada
- Life insurance policies
- Gold and silver bars or equivalent certificates of ownership
By making non-cash contributions, you will still receive a RRSP deduction and the investment income earned inside the RRSP will not be taxed.
Before undertaking this strategy, please speak with your financial adviser and your provider of income tax preparation services in Oakville.
For more information ways to save taxes in Canada using RRSP’s see Accountant Toronto – 5 Secrets to Saving Taxes for Canadians
5. Deductible Employment Expenses in Canada-Income Tax Preparation Oakville
The only question is, which expenses are deductible employment expenses in Canada? They are:
- Travel expenses
- Automobile expenses – see Accountants in Oakville – Save Taxes Now with Powerful Tax Strategies
- Cost of supplies
- Salary paid to assistant
- Home office expenses
- Office rent
- Union and professional dues
- Legal fees
To see what deductible employment expenses you can claim, please speak with an accountant who provides income tax preparation services in Oakville.
The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided on this page.