If you’re a business owner, you’re apparently annoyed of paying too abundant in tax. However, there are tax strategies accessible to abbreviate the bulk of tax that you pay.
5 Best Tax Tips by a Toronto Chartered Accountant:
1. Paying Assets – Tax Tip
Dividends accept a lower tax amount than salary. For example, the accomplished claimed assets tax amount in Toronto, Ontario is 46.4% for bacon and alone 31% for dividends.
In fact, the aboriginal $38,000 of assets are tax chargeless in Toronto, Ontario, accouterment that you accept no added antecedent of income.
Therefore, it’s added advantageous for your association to pay you assets instead of salary.
You should argue your Chartered Accountant in Toronto first, afore you apparatus this strategy.
2. Assets Splitting – Tax Tip
If your apron is complex in your business, you could pay him/her a reasonable bacon for the plan that he/she has performed. If you are in a top tax bracket, and your apron is in a lower tax bracket, again your all-embracing tax accountability will be beneath by paying your apron a salary.
3. Home Appointment – Tax Tip
As a sole freeholder that has a home based office, you can write-off a allocation of the costs of active your home. These costs cover utilities, acreage taxes, mortgage absorption and maintenance. The allocation that you can write-off is the based on the admeasurement of the admeasurement of your home appointment of absolute the absolute admeasurement of your home. For example, if your home appointment comprises 10% of the absolute amplitude in your home, again you can write-off 10% of the costs for active your home.
Before adventure this strategy, you should allege with your Toronto Chartered Accountant first.
4. Actor loans – Tax Tip
If your association has a debt that it owes to you, you can accept your association accord that debt to you on a tax chargeless basis. Actor loans generally appear from the antecedent basic invested by the business buyer or because of costs paid on account of the association by the business owner.
If your Chartered Accountant in Toronto hasn’t told you about actor loans, again you should absolutely ask why.
5. Tax-Free Auto Allowance – Tax Tip
If you accept a corporately endemic automobile, accede accepting your association pay you a tax-free auto allowance for the KM’s that you drive for business purposes.
In Toronto, Ontario, you can accept a tax-free auto allowance of 52 cents per KM for the aboriginal 5,000 KM and 46 cents thereafter. In addition, the auto allowance paid to you is tax deductible by your corporation.
Again, amuse allege with your Chartered Accountant in Toronto first, afore paying an auto allowance to yourself.