Shaelene’s Tax Tip of the Week – January 9th

Are you a contractor?
 
Please do not pay sub-contractors in cash if you cannot provide them with a receipt – otherwise known as an under-the-table transaction. This goes the same for the person purchasing the contract. The risk simply isn’t worth it. This may seem like an obvious tip, but you would be surprised just how many people are unaware of the tax implications of these sorts of decisions. You cannot ever qualify for a deduction for an expense you have incurred if you cannot provide a receipt. If the contract costs $20,000 in expenses, the person who paid it will be on the hook for all $20,000.

Tax Tip Of The Week – November 28th

Hopefully, you haven’t, but maybe you’ve had a loss on one of your allowable business investments. An allowable business investment is an investment in a private Canadian corporation that is

:

a) A “small business” corporation that;
a) carries out 90% of its business on Canadian soil and;
b) existed 12 months before the disposition of the investment

While capital losses can only be used to reduce capital gains, you can use 50% of an “allowable business investment loss” to minimize all other types of income. Do note that the disposition cannot be with a person you are in an arm’s length relationship with, i.e. a family member.

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