TAX TIPS - Business

• 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.

TAX TIPS - Personal

• 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.