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.

Shaelene’s Top Three Tax Tips

We’re already nearing the end of January, and as you complete this year’s taxes there is no better time to start preparing for next year.

Those tips to get started are:

  1. Track your mileage and keep those gas and vehicle maintenance/repair receipts.
  2. Be sure to get all those receipts, even the little ones! From coffee with a client, parking, networking, home office needs … It all adds up!
  3. Talk to a pro. Whether it is me, Shaelene, or another professional, learn what’s best for your business, because understanding how taxes work means you only pay the taxes you need to, which saves your money along the way.

Start tracking your mileage, collecting those receipts, and contact us to learn what’s best for your business at info@2hc.ccf.myftpupload.com or (905) 571-2665.