If you are a small business owner in Canada, you may want to recognize the various tax deductions that will help save you money. In this video, the 8 best tax write-offs tips will be discussed.
0:27 – 1. Home-Office Expenses
1:00 – 2. Vehicle Expenses
2:08 – 3. Accounting and Legal Fees
2:23 – 4. Office Rent
2:39 – 5. Advertising
3:40 – 6. Meals and Entertainment
4:16 – 7. Insurance
4:36 – 8. Capital Assets
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(Including Tax Tips for Canadians, Personal Tax Planning Guide for Canadians: 2014 Edition and 20 Tax Secrets for Canadians)
The information provided in this video is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. All figures and dollar amounts are used for example purposes only. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided in this video.
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Thanks a lot Allan for this video and all the videos, you are a true help!
I have a question regarding the business vehicle lease; I am paying $900 a month for my truck lease, so would I be able to deduct 10,800 from my income for the year (say it is 80,800) so my taxable income becomes 70,000 instead?
Hi Hany, if the truck is used to haul goods, then it's not treated as a passenger vehicle, and the lease amount is fully deductible. Otherwise, the truck will be treated as a passenger vehicle, and the lease deduction is limited to $800 per month.
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Hi Lu Rose, when you purchase a company asset during the year, you can claim 6 month's of depreciation expense, regardless of when you purchase it in the year. This is known as the 'half-year rule' for depreciation. To maximize your after-tax dollars, consider purchasing a company asset at the end of the year. By doing so, you can claim 6 months worth of depreciation expense, even though you owned the company asset for a very short-time period.
Hi Emanda, lease payments are tax deductible. If you financed the purchase amount of the vehicle, then you can write off the interest paid. In addition, for a financed vehicle you can also claim depreciation at an annual rate of 30%.
Allan I am interested to advertise on your you tube. I have been in business since 20 years I can give you my Charter Accountant for references.Example: one unit invest $ 12,700 receive a loan of $25,000 write off $37,700, the loan is guaranteed with land value. its a land development in Costa Rica I also offer lesser amounts tax shelters 150% guaranteed income in ten years.
Hi Allan, can I purchase a cottage home and a primary residence in 2 different cities? And if I sell the primary residence can I avoid paying tax on the capital gains for the primary residence? And what order I should purchase the homes in (ie. first buy the cottage or the primary residence).
ok great. BTW your videos are amazing. I've learned so much.
Im just throwing this out there, but maybe making a video about this may help.
Many of my friends had the same question and concerns regarding owning 2 properties (cottage & house down south) and wanting to sell their house down south (primary residence) and not wanting to pay tax on the capital gains since its their primary residence.
so Allen, just to clarify, if i purchase a 160,000 car, I can only claim $24,000 (15%) in the first year and a maximum of $6,000 (4%) the next year and thats it. I would not be able to claim anything else, correct?
So probably better to lease the ?
I know the lease limit is $800 + tax, is that for all the cars under the corporation or can I have 2 cars under my corporation for $800 per car?
And if so, can I purchase the cars within the same year or is there a limit of cars you can lease per year?
Your videos are great
If you purchase a vehicle for $160,000, then the amount allowable for CCA is limited to $30,000 + taxes. For example, assume that you purchase a car for $30,000 (ignore taxes for simplicity). In year 1, you can claim 15% or $4,500 of CCA. In year 2, you can claim 30% of the balance remaining for depreciation: 30% x (30,000 - $4,500) = $7,650 of CCA.
If he bought his car say 5 years ago, would have only be able to write off 30% of the current "book value" of the car? ... and if so, does the half-year rule of 15% apply since it's the first year he's claiming it?
The capital cost allowance (i.e. depreciation) rate is 30% per year for vehicles. In the year of purchase, only 15% can be claimed. Note: The maximum cost allowable for CCA is $30,000. The purchase price in excess of $30,000 cannot be written-off.
I'm assuming that you are tax resident of Canada. If this is the case, then taxes of 15% will be deducted form dividends paid by US companies to you. Any capital gains on the sale of US marketable securities will only be taxable to you in Canada.
Owned buildings at another site may be used as alternate workspace if a building cannot be occupied. This depends upon the location of the building and whether the building would be affected by the same hazard that prevented use of the primary building. The alternate facility may be a viable business recovery strategy if the building can be configured with the required equipment or existing equipment can be configured to need business requirements.
Systems and Equipment.
Evaluate these systems to determine whether they meet the needs of the program. Identify and plan to overcome emergency communication system limitations such as weak radio or cellular service or areas where a warning system cannot be heard. Upgrading this critically important system may be required. Verify that these systems are in reliable working condition.
If fuel, battery backup power or batteries are required, make sure the system can run for the required time and chargers are available. Document how to operate these systems and mark the locations of controls. Make sure the information is available during an emergency. Many of these systems also require periodic inspection, testing and maintenance in accordance with national codes and standards. Train staff so a knowledgeable person is able to operate systems and equipment.
Materials and Supplies.
Be sure to compile a list of available resources using the Emergency Response Resource Requirements and Business Continuity Resource Requirements worksheets as a guide.
Preparing for an emergency, responding to an emergency, executing business recovery strategies and other activities require resources that come from outside the business. If there were a fire in the building, you would call the fire department. Contractors and vendors may be needed to prepare a facility for a forecast storm or to help repair and restore a building, systems or equipment following an incident.
The following external resources should be identified within plan documents. Include contact information to reach them during an emergency and any additional instructions within the preparedness plan.
Public Emergency Services.
Contractors and Vendors.