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

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Did you know?

Know the difference between a “tax credit” and a “tax deduction.” A deduction is an expense or exemption which reduces your total taxable income. The tax credit is what reduces whatever you’re on the hook for income tax wise.

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Shaelene’s Tax Tip of the Week – March 2nd

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Did you know that Canadian artwork and antiques can be a taxable expense?

Qualifying artwork can be capitalized and depreciated at a tax rate of 20% for tax purposes. To qualify, the artwork must meet the following criteria:

  • the artwork must cost $200 or more
  • is not held for resale and is exhibited in a place of business where it will be seen by clients
  • is acquired for the purpose of gaining or producing income from an arm’s length individual
  • was created by an individual who was at the time a Canadian

If the artwork has appreciated and is sold, it will result in recapture of CRA up to the amount of the original cost of the artwork and this recapture will be included in the business income. Any amounts over and above the original cost would be considered a capital gain.

Have questions? Give us a call at 905-571-2665 (BOOK)!

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Shaelene’s Tax Tip of the Week – November 17th

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Did you know?
If you’re self-employed and use your car to earn business income, you may be able to claim vehicle related expenses like gas, insurance, licensing and registration fees, maintenance and repairs, leasing costs and interest on money borrowed to purchase a car.  ?If the car is also your personal vehicle, you may only write off the portion used for business  purposes. To calculate this, you must keep a logbook detailing all your business trips, including  the mileage, date and purpose of the trip. Make sure to document all other expenses and keep receipts organized in one place so you’re prepared if you get audited.

Have questions? Give us a call at 905-571-2665 (BOOK)!