- Consider giving your employees non-cash gifts for special occasions so that they may not be considered a taxable benefit.
- If your sales are below $200,000, you can file GST/HST returns using the Quick method of filing, which can save you both time and money(could be thousands of dollars per year of additional input tax credits).
- Although your business should generally deduct the maximum capital cost allowance available, this may not be true in a low-income year. In this situation, consider optimizing your capital cost allowance by deducting less than the maximum allowable so that you may carry forward the unclaimed amount to a higher income year.
- Life insurance premiums may be deducted when they are required as a condition for borrowing money.
- Meals and beverage expenses should be itemized and segregated from golf fees to qualify for the 50% deduction.
- The carry-forward period for non-capital losses and other losses for taxation years that end after 2005 was extended from 10 to 20 years.
- Enrol your children in fitness activities and become eligible for the Children's Fitness Tax Credit allowing parents to claim a maximum of $500 per year for eligible fees paid for each child who is under 16 at any time during the year. As with most other non-refundable tax credits, the value of the credit is calculated by multiplying the eligible amount by the lowest combined marginal tax rate (approximately 20% in 2010).
- Moving and useless with receipts? If you decide to use the simplified method, you can deduct a flat rate of $17 per meal, to a maximum of $51 per day, per person, without receipts as part of your moving expenses.
- The RRSP limit for 2009 is $21,000; this will increase to $22,450 in 2010. For an RPP, the limit for 2009 is $22,000 and for 2010 is $20,000. Both limits will be indexed for inflation in later years; moreover there is no longer a limit to the amount of foreign property which can be held in either type of plan.
- Canada Revenue Agency allows you to claim medical expenses for any 12-month period ending in the tax year. Therefore, choosing your 12-month period for medical claims according to when your medical expenses occurred can often be more advantageous than simply using the calendar year.
- Certain expenses, such as for a home office or a car, are deductible if they relate to your employment. In order to deduct these expenses, you must have form T2200 signed by your employer.
I have worked with Jonathan Ruben for both personal tax and estate planning as well as complex tax and corporate structuring advice for my corporate needs since 1999 and have always enjoyed the highest level of professionalism and responsiveness.
CEO, music download service provider, 40 employees