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7 Tax Tips That Can Save You Money C2online

Taxes and death are inevitable. We can’t avoid either of them. But, do we really have to pay so much to settle our tax obligations?

One way to maximize profits is to learn how to reduce taxes effectively. Any tax deduction properly recognized is a dollar saved and a dollar saved……

Below are seven tips that small business owners can implement to save money:

1. Plan ahead

You don’t have to wait until the 11th hour to see the impact your transactions have on your tax obligations. At crunch time, the chances of missing important factors, like the effect of asset acquisitions on your tax declaration, may be forgotten.

Plan ahead so you can analyze how various financial transactions will affect the taxes you pay.

2. Entertainment Expenses

Don’t forget to keep your receipts whenever you dine out with clients. These expenses are 50 percent tax deductible.

Check with your bookkeeper or accountant for exceptions. For example, if you take your entire staff out for dinner (no one is excluded), then the deduction is 100 percent.

3. Home Office Expenses

If you operate a home-based business, you can include some expenses related to your home office for tax purposes. This may include rent, utilities, repairs, etc. The idea is not to charge the full amount but a proportionate amount in relation to the size of your home office within your house.

4. Expenses incurred for doing business

Once you incur any expenses in the course of doing business, no matter how small, be sure to record them and keep all your receipts. Many of those expenses may be tax deductible. Check with your accountant or bookkeeper. Even small tax deductions add up.

5. Pay family members’ salaries

If your teenage daughter does simple administrative tasks, or your spouse helps you manage the business, make sure you pay them a salary. You should be able touse these expenses as tax deductions.

Of course, you should pay them an amount that has a value in direct proportion to what they do. Paying them more than what is reasonable just to get away with paying bigger taxes can cause problems with the taxman.

6. Depreciation expenses

You can amortize most capital expenses by allocating depreciation amount based on the useful life of the asset.

Be sure to talk to your accountant about the best amortization method and how it could impact your income statement and balance sheet in the long run.

7. Hire a professional accountant

If you are thinking about cutting costs you may want to hire a professional accountant. The value of their expertise may far exceed the amount you pay them in the short term.

Keeping your financial statements in order is an important part of your business. Working with an accountant and following their recommendations will help you increase the profitability of your company.

 

Photo credit: forwardcom  


Are you a Single Parent - What you need to know about Audits! Lisa Patrick

How can the government actually audit single parents for receipts of child care and not even take a second LOOK to see if the children have been claimed as an equivalent to married!
The do not include finding Lost tax credits for something so obvious!!!
 
SO, you single parents remember to claim the equivalent to married credit on the federal, provincial and GST tax schedules.

If you have any questions, contact us and we will help.

Darlene Lafond C.P.C., R.P.A.


Home Renovation Tax Credit – 80% of canadians don’t know enough!! Lisa Patrick

 Attend our free seminar on the home renovation tax credit and find out ALL you kneed to know.  The less we have to give to the Revenue Canada the better.  Visit our contact page on our website to RSVP.

Home Renovation Tax Credit
FREE Seminar


Revenue Canada Free! Lisa Patrick

We have compiled a list of sessions at the bottom of this email, that Canada Revenue Agency offer that are free.
Their contact number of 1800 959 5525 is valuable regarding questions.

Always remember when you are talking to them, they are supposed to know more about taxes and business requirements for our tax government than us.  They wrote the book.  If you do not understand the answer – ask to speak to their supervisor.  You do not even need to give your name when you call them.
Biggest thing….. GST registration or not?   If you are buying a lot of equipment to start your business you may want to register so you can get the GST dollars back. (see our post Purchasing Equipment! …)
Edmonton
·        GST/HST New Registrant Seminar <http://www.cra-arc.gc.ca/vnts/ab/dm-gst-eng.html>
·        Small business information seminar <http://www.cra-arc.gc.ca/vnts/ab/dm-smll-eng.html>
·        Tax Information Sessions <http://www.cra-arc.gc.ca/vnts/ab/dm-nf-eng.html>
·        New Employer’s Information Session <http://www.cra-arc.gc.ca/vnts/ab/dm-nw-eng.html>
·        Taxable Benefit Information Seminar <http://www.cra-arc.gc.ca/vnts/ab/dm-tbis-eng.html>
·        SR&ED Public Information Sessions <http://www.cra-arc.gc.ca/txcrdt/sred-rsde/cntcts/srdpr-eng.html>

Alberta – Events <http://www.cra-arc.gc.ca/vnts/ab/menu-eng.html>

Edmonton, AB – Small business information seminar <http://www.cra-arc.gc.ca/vnts/ab/dm-smll-eng.html>

Edmonton, AB – New Employer’s Information Session <http://www.cra-arc.gc.ca/vnts/ab/dm-nw-eng.html>

Edmonton, AB -Taxable Benefit Information Seminar <http://www.cra-arc.gc.ca/vnts/ab/dm-tbis-eng.html>

Lisa Patrick
CEO


Money Back from Revenue Canada – Missed Medical Refunds Lisa Patrick

If you answer Yes to any of these questions:

  1. Does it take more than average length of time for you to walk?
  2. Do you have hearing problems?
  3. Do you have problems seeing?
  4. Do you have problems eating?
  5. Do you have problems breathing?
  6. Any medical impairment that effects your daily life?

Than you need to read more.

Do not overlook a tax credit that can save you over $2500 a year.
You can get the government to adjust up to 10 years….
I have seen government refund cheques, yes for thousands of dollars –        TAX FREE AND LEGAL!!!

RC4064 – Medical and Disability-Related Information – Includes Form T2201 – 2008 <http://www.cra-arc.gc.ca/E/pub/tg/rc4064/README.html>

T2201 – Disability Tax Credit Certificate <http://www.cra-arc.gc.ca/E/pbg/tf/t2201/README.html>

Contact us to see if you qualify or ask your professional.
Darlene Lafond R.P.A., C.P.C.
Master Tax Specialist


Testimonial to a good Accountant – Why you need an accountant to handle Estate Lisa Patrick

estate, I know my handling of my dads estate would have been completely different had I not had an accountant that asked me questions…. Gave me lists.

I started helping my dad with his tax stuff soon after he got sick.  He and I just used the routine method he had always taken to file his taxes.  When he died, I assumed the routine would be the same but I would have to do it with out him this year.

Well, what a shocker…  when I visited my dad’s tax office after his death…. The need for the “will” to even have them talk to me….surprised me; as I had been their at that same office several years prior to his death

Upon providing the office the Will, I was referred to a tax accountant.  ….   It was about proving to the government that I had authority to act on his estate after his death. The power of attorney was not good after he died.

The 22 questions that the tax accountant asked me, helped me realize that the final personal return for my father required some i dotting and t crossing..
We discovered that his walking impairment of the last two years resulted in him getting additional money back from those two years prior to his death…. Close to $2500 per year.
It was not that there was an error on the prior years, it was the question about disabilities in daily life,  that was explained in better detail directed me to contact my dad’s doctor.

Anyway, it is my experience that the final paper work is not just about papers, it is finding out that you basically take on a new household when you become an executor.  It was important that the tax accountant knew what I might not know.   Knew I might assume things but this tax accountant knew it was her job… to ask me…very specific questions…

The items my father had willed to his underage grandchildren, had to be set up specific to ensure we did not need to keep the estate open for the years they were under age.  She knew what to do to get the thing finalized…

So when visiting the tax person you believe will be handling the final things…. go to that meeting believing you should been shown something you do not know as they are the tax people… they should know something you do not know….feel confident in the questions that they ask of you … if they ask very little they may not be the right person for you.


Free Seminar – Handle the bookkeeping for Home Reno Tax Credit Lisa Patrick

A survey, conducted by Ipsos Reid, found that three in four Canadians (76 per cent) who are planning to renovate will pay for most or all of it with cash or savings, compared with 70 per cent in 2008, signaling a shift in the way Canadians view home improvement financing. Fewer renovators, 24 per cent, plan to use a credit card to finance their renovation this year, compared with 32 per cent in 2008. This may have something to do with the home renovation tax credit.

The home renovation tax credit would give up to $1,350 in tax relief on home improvement projects. Eligible expenses would have to total at least $1,000, but not more than $10,000, and the work would have to be done between Jan. 27, 2009, and Feb. 1, 2010.

It’s a 15%  credit which can be claimed on an amount which is more than $1000 and under $10,000. The maximum credit that you can obtain is $1350. You need to account for your expenses and let us help you with that.

Our free seminar on February 3 in Morinville – 6:30 PM registration at the Morinville Rendez Vous Centre 9913 – 104 Street .. Please contact us to RSVP.


$ Gone When Someone Dies .. How to avoid This! Lisa Patrick

Many tax saving dollars are lost due to completing the final and estate return without consideration to illness as cause of death!  You may qualify for the disability tax credit !

This certificate T2201 provided by the government (www.cra.gc.ca <http://www.cra.gc.ca/> ) once completed by a medical practitioner, may result in up to 10 years tax refunds of approximately $2500 each.  YES, we have seen the cheques!
This credit may also be transferred to an individual that cared and supported the taxpayer with the illness.

Darlene Lafond R.P.A., C.P.C


GST – A Lower % when you File? Lisa Patrick

When you are a GST registrant in the service industry you can apply for an election to be able to file a Quick Method return at a lower percent.

The Application is GST74 and the guide is RC4058(e) both you can find on
the CRA website www.cra.gc.ca/gsthstpub

Joan Rupert C.P.C.
CFO


Out of Town Travel and What CRA Court Says Lisa Patrick

Reasonable Expectation of Profit.

An audit we recently represented at Tax Court of Canada focused on the claim of business meetings with the government scrutinizing the vehicle trip log and some out of town travel.

The judge chose to disallow some deductions even though the client had provided all the receipts.

The final conclusion may have been more favorable if the kilometer logs & travel itinerary of the meetings actually would have had the following information present:

  1. actual street address of meeting location
  2. job description or job title and complete name of all attending meeting
  3. brief summary of discussion must have specific details not just promotional meeting.

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