Frequently Asked Questions About Taxes
Both individuals and companies often find a challenge in tax preparation and filing. While some of us have the knowledge and skills to maintain our monthly accounts, we often need assistance arranging our receipts, preparing our documents, and planning to ensure we save our hard-earned money.
If you are not proficient in filing your tax returns on your own, hiring a tax preparation specialist can ensure your accounts are always in order, and you are never in danger of an audit. However, unless you have used the services of an accountant and tax professional before, you have many questions that need answering before you decide on the best services for your business.
To ensure you have all your doubts cleared, Ocean Breeze CPA wants to arm you with the most accurate tax preparation and filing information. To do this, we've answered some of the most frequently asked questions relating to your tax returns.
1. As an individual, how can I reduce my tax bill?
a. First off, you can make sure that you are claiming all of your various tax credits, such as basic personal credit and so on, ensuring you maximize your RRSP deductions and pension-sharing if you or your spouse is retired. If you have an opportunity of when to crystallize a capital gain, consider that in relation to your ongoing income situation. As an individual, these are but just a few of the things you can do to reduce your tax bill.
b. Make sure that in addition to maximizing your RRSP contribution, if you are a moderately high-income earner, you are contributing to your TFSA. This allows various income and capital gains within the TFSA to grow tax-free, and this thus reduces your income taxes over time.
c. If you have moved at least forty kilometres closer to your new work location, this is an advantage to business owners. Deductions can include everything from the moving costs itself but can also consist of travel costs, realtor commissions for the sale of your old residence, and many others.
2. How can I reduce my tax bill as a business?
As a business, reducing your tax bill includes ensuring that you are claiming all of the expenses you are entitled to, including any "business use of home" expenses that you may be able to deduct. Additionally, you can hire and pay a family member at a supportable market rate for help with the business. This may provide an opportunity to legally income-split and thus reduce the overall family income taxes.
If you have more questions about accounting, and tax services, get in touch with Ocean Breeze CPA. We provide personal, business, corporate, and non-profit tax services, and associated services, such as bookkeeping and payroll. Our commitment is to help you navigate through the ocean of numbers for tax compliance and help bring you peace of mind.
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