There are many ways that you can take advantage of business tax strategies to relieve your personal tax burden. The best option for advantageous tax preparation is to hire an experienced Chartered Professional Accountant like Gary R. Landa offering tax services for self employed individuals. There are still several things you can do to improve your tax situation.
1. Claim Business Expenses
Many of the everyday expenses associated with running and maintaining your own business can be deducted from taxes. Examples of these are numerous. A CPA with over thirty years’ experience can help you go through your expenses and identify those areas which are legitimately tax-deductible.
2. Deduct Capital Expenses
Capital expenses cover equipment and other expenses which are directly necessary and used for business purposes. This could cover items such as computers, office furniture. More expensive purchases can be written off over time through depreciation or the capital cost allowance.
3. Claim Home Office Expenses
For those working from their own homes, you may claim the operating costs of the portion of their home used specifically for business. This is based on the ratio of the home office vs the total square footage of your house. – i.e., if the area of the home exclusively devoted to business is 20% of the overall square-footage, then 20% of expenses such as mortgage interest and utility bills can usually be deducted. Please keep in mind, if you are using your basement or the garage to store goods, the square footage of the basement and/or garage must be included in the calculation of the total square footage of the house.
4. Put Family Members on the Payroll
There may be tax planning opportunities if family members worked for your business. This may result in substantial tax savings.
Accurate accounting and bookkeeping is a necessity in event that you are audited by CRA.
Gary R. Landa, CA Professional Corporation has over thirty-four years’ experience preparing taxes. Contact him today to learn the most advantageous tax strategies for your self-owned business.