If you buy a piece of vacant land for investment purposes, you may want to know about eligible write-offs for expenses including mortgage interest. In general, expenses incurred to generate income are tax deductible. However, when it comes to vacant land, which does not generate any income, expenses such as mortgage interest, property tax, etc. cannot be written off […]
It is very common nowadays for business owners to use part of their homes to carry on business. You can declare a certain percentage of your residence as a home office and claim a portion of home expenses. You are allowed to calculate the percentage based on either square footage or number of rooms, and […]
Check out this DIY guide from Canada Revenue Agency if you are not a client of NH Business Services and intend to file your own personal income taxes online: https://www.canada.ca/en/revenue-agency/services/e-services/e-services-individuals/netfile-overview/certified-software-netfile-program.html
Have you ever received a text message from the Canada Revenue Agency (CRA) asking you to fill in an online form? It’s a scam, don’t do anything. Do not respond. Keep in mind that the CRA never sends text messages. The CRA never sends any links, never sets up a meeting with you in a […]
When you hire subcontractors to help on projects, some subcontractors may not provide proper invoices when they get paid. In the case of a CRA audit, how can you protect yourself and prove that those payments were for subcontractors? A solution is to issue T4A slips to those individuals who did not provide invoices. You […]
Visit this CRA site to find out what deductions, credits and expenses you can claim: https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/deductions-credits-expenses.html
In general, for income tax purposes you only get to deduct 50% of your Meal & Entertainment Expense. However, if there are staff events such as Christmas parties, or company lunches, as long as the event is available to all staff in the company or the department, a claim for 100% is allowed for the […]
In BC, the Federal and BC combined personal income tax rate ranges from 20.06 to 53.5%, which is markedly higher than the corporate income tax rate of 11% for 2023 (=Federal 9% + BC 2%). If your company is a Canadian Controlled Private Company (CCPC) operating as an active business generating income, then incorporation might […]
According to the Income Tax Act, fines and penalties are not deductible for tax purposes. This applies to tickets imposed by: Federal government Provincial government Municipal government A government agency Regulatory authority Court Tribunal Or even a foreign country This also applies if you receive a traffic ticket from the police department. It is a […]