How to reduce your business taxes
It’s your job to make sure your business has enough money to survive and thrive – and lowering your tax payable is one way to do that.
It’s your job to make sure your business has enough money to survive and thrive – and lowering your tax payable is one way to do that. All it takes is a little preparation, some good habits and the advice of a qualified tax specialist.
Use these tips to give your business an advantage by keeping more of your money.
If there’s one thing you’ll dislike about being in business, it’ll be the taxes you have to pay as a business owner. So you’ll want to take advantage of every legal strategy available to help you to minimize your tax payable.
Here are some straightforward ways to aid your tax preparation throughout the year.
Like employed individuals, there are good reasons why business owners should take advantage of tax-savings vehicles.
With a Registered Retirement Savings Plan (RSP), you get an upfront tax deduction for your contribution, plus your money compounds tax-free. An RSP is an effective way for business owners to diversify their income sources and shelter that income from tax.
Another popular vehicle is a Tax-Free Savings Account (TFSA). You don’t get the upfront deduction with a TFSA, but your savings do grow tax-free and you can make withdrawals from your plan at any time without paying tax.
These are just some of the deductions you might be entitled to. If you work from home, you are also allowed to deduct a portion of all related home expenses, including utilities, maintenance and insurance.
Again, your accountant can help ensure that you are taking advantage of all available business deductions.
(Disclaimer: This article is for information purposes only. Always consult a qualified tax specialist about your particular tax situation.)
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