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Filing Taxes Insights

August 3, 2021

How to Save Taxes for the Self Employed in Canada?

Running a business is a hard mountain to climb, and naturally, you want to keep as much of what you make as possible. If you’re self-employed, you already know how stressful tax preparation and tax filing can be – keeping track of receipts, staying up to date on the Canada Revenue Agency’s tax policies, and navigating tax season. So here are some tried-and-true tax tips to help you stay on track throughout the year, maximize your deductions and lower your overall tax bill. 1. Deduct business-use-of-home expenses Anyone who is self-employed and uses their home as their place of business […]
August 1, 2021

8 Best Write-Offs for Small Business in Canada

Generally, all businesses in Canada are allowed to deduct expenses from their income, that are incurred not only to make the business operational but also to sustain that business once it is up and running. The CRA has a list of the common business expenses that you can write off. The prerequisite for any write-off is that it must be incurred to earn the business income and must be reasonable under the circumstances.  There is a lot that you can claim. It’s about portion and being reasonable. This article covers the 8 best write-offs for small businesses in Canadian Tax Law. […]
July 31, 2021

How to Become an Independent Contractor and Not an Employee?

Your tax status marks a strong impact on your Canadian Income Tax. The motivation for you to be an independent contractor and not an employee is that the independent contractors have far more write-offs and pay a far lower tax rate than employees. This allows them to retain more after-tax cash in their hands. The CRA uses specific criteria to determine your tax status as an employee or independent contractor. You can take steps to protect your status as an independent contractor if you understand them and how to implement them. So, how can you do it? Well! it all depends upon the contract between you and your customer or quote-unquote employer. The agreement must include specific clauses, so it passes the CRA’s test […]
July 31, 2021
How to Save Corporate Taxes in Canada

How to Save Corporate Taxes in Canada?

There are so many legitimate ways that you can use to save your company’s taxes. Canadian corporations have two ways to minimize the amount of income tax they have to pay; do prescribed things that earn them tax credits or take advantage of income tax deductions. This guide offers some of the top strategies to minimize your tax burden and maximize your business income. 1. Pay yourself dividends instead of salary When you pay yourself in dividends, you get paid as a shareholder (or an owner) of the corporation. Unlike a salary, which counts as personal income, dividends are considered investment income. Dividends […]
July 23, 2021

Are conference expenses tax-deductible?

Conferences can be great places to generate ideas, learn about trends, network with other professionals, and promote your business. The Canada Revenue Agency (CRA) allows you to claim travel expenses as corporate deductions, but the agency has special rules for Conferences. If you want to take advantage of the Conferences and maximize the payback potential, it’s important to understand the rules. What is the cost of the agreement? If you are an entrepreneur or self-employed, the CRA will allow you to amortize the cost of attending two conferences a year. The conference must apply to your business, and in most […]
July 11, 2021

Is The Occupancy Fee Tax-Deductible in Canada?

In Ontario, new condominiums go through a so-called period of temporary employment (or simply “occupation”) before final closure. This is the time period when you have the right to occupy the unit, but technically you do not yet own it. This is unique to apartments and does not happen in owned properties that go until the final closure. You will have a job on the closing day, where you will receive the keys to the unit. Then, sometime later, you will have your last closing day when the title will actually be transferred to you. What is the occupancy fee, […]
July 5, 2021

How to Manage Cash Flow in a Crisis– Covid-19 & Beyond

Several classes of business are particularly vulnerable to cash-flow issues stemming from the outbreak of Covid-19. Following this outbreak in early 2020, Canada’s businesses have suffered their greatest economic turbulence in living memory. The global pandemic has capsized revenue forecasts, toppled growth projections, and slackened cash flows to trickle. How we respond to this extraordinary and evolving situation will affect Canada and Canadian businesses for years to come. The Covid-19 pandemic hit suddenly, causing upheaval to all parts of the economy– leaving business owners dealing with a lot of uncertainty. Crucial Cash Flow Challenges Cordoned off borders, government lockdowns, and […]
July 2, 2021

Why Do You need an Accountant to Incorporate Your Business?

If you are planning on incorporating your business in Mississauga or anywhere in Canada, one of the most important decisions that will take you in the right direction is to find the right professional accountant. An accountant is well equipped with all the latest rules and regulations. Hence, he is in a better position to assess your individual and family tax situation and give you personalized tax advice and appropriate corporate structure. Once your accountant is aware of your tax situation, he or she can work out the exemplary business structure ultimately mitigating your tax burden. He will consider various […]
June 30, 2021
Transfer a Pre-Existing Business to a New Holding Company

Can I Transfer a Pre-Existing Business to a New Holding Company?

This is actually a common question, and it’s really important that you do it right. How do you do this, depends on various factors with your pre-existing business, as well as your new holding company. You can surely transfer an existing business to a newly incorporated holding company on a tax-free basis by implementing a Section 85 Rollover. There are few reasons that compel people to convert their pre-existing business to a new holding company. One of the primary reasons is that the business has grown. This alone can be a significant reason to switch the business to a new […]