This article will provide you with insights into tax tips for entrepreneurs in Calgary. You may not be aware of some of these tips and they can potentially save you a lot of money.
One way to save on taxes as an entrepreneur is the use of a TFSA savings account to help shelter additional income and investment earnings from tax. This account works similarly to an RRSP account, but without the need to contribute each year. The withdrawal rules are also simpler than those for RRSPs, meaning that the funds can be withdrawn at any time without any tax implications.
If you’re a Canadian and your business is just starting out, then there’s a lot to consider when it comes to filing taxes. Here we’ll go over the basics of filing taxes as well as some lesser known tax tips.
1. You can claim certain medical expenses incurred for yourself, your spouse or common-law partner, and your dependents. Medical expenses are eligible only if they are not listed under other categories.
2. The Canada Revenue Agency (CRA) is taking a more active stance against taxpayers who try to avoid paying taxes by transferring wealth to family members or friends without reporting the transfer or without paying applicable taxes on the funds transferred.
3. If a business pays a dividend to a shareholder, it will be taxed at a corporate tax rate of 11%. For example, if the company has an after-tax profit of $100 million and pays out $10 million in dividends, it would have an after-tax profit of $90 million.
The Ultimate Guide to Tax Preparation in Calgary
For many years, taxes were considered the responsibility of one person. Now, with government initiatives to combat taxes evasion, it has become a shared responsibility.
There are many tax preparation services in Calgary that offer a complete range of tax preparation services for both individuals and business owners. They offer advice on which deductions you are entitled to claim as well as help with preparing your taxes online or through software programs.
As long as you have an income or employment in Canada, the Canada Revenue Agency requires that you file your income taxes every year. Failure to do so can result in penalties up to $25,000 for individuals and $50,000 for corporations.
How to Hire the Right Tax Preparer
It is not easy to find a good Tax preparer. Choosing a reliable and experienced tax preparer can save you the hassle of filing your taxes by yourself.
Tax preparers are usually categorized into two types: general tax preparation and business accountants. General tax preparation services are offered by accountants, lawyers, and other professionals who have been trained in the art of preparing income tax returns. If you are looking for a dependable business accountant, then you should get in touch with an accounting firm in Calgary that has experience with businesses of all sizes.
How You Can Prepare Your Business Taxes Now For Next Year
1. Take advantage of every deduction you can
2. Keep track of your receipts
3. Track your mileage
4. Find the best tax software
You know that working on your taxes can be frustrating and time-consuming. That’s why Bomcas Accounting and Tax Services offers professional, reliable, accurate and affordable tax preparation services to its clients across Calgary. We can also help you with bookkeeping, payroll, accounting services and more.