by Chris | Apr 28, 2016 | Taxes
*I am not a tax professional. This is meant to be an educational tool and NOT a recommendation. Each personal situation is different and there’s a lot of grey area in self-employed deductions. If you have questions (even just little ones) … talk to a tax expert.*
Ever since moving to the big ole city of Toronto I haven’t had a car, but it wasn’t long ago that I called the prairies home… and getting around without a car was just plain impossible.
So for all of you who are using some kind of motorized vehicle to get from place to place here’s how to deduct your business mileage. (more…)
by Chris | Apr 27, 2016 | Taxes
*I am not a tax professional. This is meant to be an educational tool and NOT a recommendation. Each personal situation is different and there’s a lot of grey area in self-employed deductions. If you have questions (even just little ones) … talk to a tax expert.*
A little while back I wrote an epic RRSP break down complete with colourful pictures and my new adorable mouse friend, but it’s worth taking a specific look at just the ‘tax deduction’ portion of the RRSP universe.
It’s got to be one of the easiest ways to lower the amount of tax you have to pay in a given year… but it still might not be the best choice for everyone.
How does it work?
This one is pretty simple. #famouslastwords
When you put money in an RRSP you don’t have to pay tax on that money until you take it out (hopefully years from now).
Now, it’s important to remember that although this deduction is very real, it’s also temporary. All the other deductions we’re talking about are forever, but you will have to pay tax on your RRSP contributions at some point…
So it takes a little strategic thinking. (more…)
by Chris | Apr 26, 2016 | Taxes
*I am not a tax professional. This is meant to be an educational tool and NOT a recommendation. Each personal situation is different and there’s a lot of grey area in self-employed deductions. If you have questions (even just little ones) … talk to a tax expert.*
If you’ve been keeping up with the blog over the last year you’ll know that I spent insane amounts of money on my teeth in 2015.
In fact, it was my biggest non-business expense (more than my housing costs).
And yes… that was after dental insurance, of which I have a minimal amount. #humblebrag
So, now that it’s tax time I found a way to turn some of that excessive spending into a tax credit!
YAYYY!!!
… and it’s not just for dental, it’s for a whole bunch of medical expenses! (more…)
by Chris | Apr 25, 2016 | Taxes
*I am not a tax professional. This is meant to be an educational tool and NOT a recommendation. Each personal situation is different and there’s a lot of grey area in self-employed deductions. If you have questions (even just little ones) … talk to a tax expert.*
BOLD STATEMENT: I feel that there isn’t a deduction more contentiously debated than the freelancer food deduction…
I keep thinking I’ve heard every single theory/justification in the book… but then another one comes out.
So I’m going to try and avoid my usual cute metaphoric brilliance (#notsohumblebrag) and try to get to the heart of this issue (if you really would rather read all the information with a big dose of classic Chris… read THIS… it’s awesome).
What does CRA say about business food deductions? (more…)
by Chris | Apr 24, 2016 | Taxes
*I am not a tax professional. This is meant to be an educational tool and NOT a recommendation. Each personal situation is different and there’s a lot of grey area in self-employed deductions. If you have questions (even just little ones) … talk to a tax expert.*
When you’re an opera singer at tax time two things might be true:
- You might not have made an insane amount of money
- You might have a ton of deductions
A combination of these two things means that a lot of us end up reducing the amount of tax we owe to … if not zero… then … not a ton.
It’s not cheating or tax evasion… it’s just a representation of income and the high cost of trying to find work in the opera world.
But the fun surprise at the end of your tax journey is… you still usually have to pay something.
No… it’s not tax… it’s CPP (Canada Pension Plan).
What is the CPP and why does it want all my money? (more…)
by Chris | Apr 23, 2016 | Taxes
*I am not a tax professional. This is meant to be an educational tool and NOT a recommendation. Each personal situation is different and there’s a lot of grey area in self-employed deductions. If you have questions (even just little ones) … talk to a tax expert.*
‘I need a phone for business’ he said.
‘But don’t you use it for non-business stuff?’, I wondered in his general direction.
‘ Ya. But business made me get it. So. Business.’
What could I say. The facts were ironclad.
I watched him walk away and hoped one day I would know as much as him. Argue so well. And look half as good in a sweater vest.
– excerpt from my new screenplay ‘Deduct This’ (It’s going to be kind of an Argo meets Analyse this… I have some interest from Danny DeVito’s people).
Screenplay aside… let’s talk about the rules for deducting internet and phone.
Even though the above scene is dramatized to fully take advantage of DeVito’s acting chops, I’ve heard the argument before.
And I shared that argument with an accountant friend of mine recently. His response sealed the deal.
“But would you not have a phone if you didn’t have a business?”
If the answer is yes… then maybe we have something to talk about. If not… only a percentage of that phone (and internet) is going to be allowed as a business expense. (more…)
