| 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. |
| Have questions? Send us an email at [email protected]! |
| Hopefully you haven’t, but maybe you’ve had a loss on one of your allowable business investments. An allowable business investment is any investment in a private Canadian corporation that is 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 reduce 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. |
| Have questions? Send us an email at [email protected]! |
| Why should you consider buying into an RRSPs (Registered Retirement Savings Plan)? It is a great way to save on taxes! Remember, this program is a tax deferral program, meaning that when you withdraw the funds at a later date, it is expected that you will be in a lower tax bracket. Once your money is in the plan it can grow and grow (thank you compound interest!) and again, you will only pay tax on the funds as you withdraw them. Have questions? Send us an email at [email protected]! |
