Do you plan to drive a vehicle MORE THAN 50% for business purposes? So, when you buy this vehicle under your company’s name, your company may claim the amount of the GST paid up to the CRA’s allowable threshold. To fully understand your allowable deductions and the CRA regulations pertaining to a vehicle purchased under […]
When the CRA does audits, the auditors always ask for proper receipts to support claims for deductions. Acceptable receipts must show the date, the vendor’s name, the items purchased, and the amount paid. Credit card and bank statements are not considered proper receipts. So, keep your receipts for any expenses that might be a write-off. […]
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 […]