by Chris | Apr 22, 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.*
In the opera business you need to look fancy. Sometimes really fancy. I would say… the most fancy.
And so, even though we can’t really afford rent next month, we trek out and spend hundreds of dollars on suits and gowns.
For the business, right?
Except… that when I buy a suit ‘for business’ it might also be the suit I wear to my cousin’s wedding, and for that guys’ night when we promised we’d all ‘suit up’ and take Mark out for birthday drinks.
So when it comes to tax time… how do you treat those specialty clothes of yours? (more…)
by Chris | Apr 21, 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.*
Unlike a lot of other deductions, the ‘capital cost allowance’ is one that you might not have heard of… but you’ve probably either used it already, or you really should have.
The CCA (fancy finance talk for Capital Cost Allowance) is for stuff that you buy for your business that lasts for multiple years: like a computer.
Unlike business meals or travel, a computer isn’t something that you buy every year. Its worth to your business is spread out over, hopefully, 3 – 5 years.
So the government doesn’t let you deduct the entire cost of the computer in the first year, because the worth that the computer is giving your business is spread over several years. And so the deduction that the government gives you is also spread over several years.
The specific percentage that you’re allowed to deduct every year is the capital cost allowance.
How do I know whether something is a ‘capital cost’? (more…)
by Chris | Apr 20, 2016 | Taxes
*I am not a tax professional. This is meant to be educational 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 always saw ‘bad debts’ on the list of deductions my accountant sent me and thought… well… all my debts are bad… can I just write them off?
No, silly. That’s not what bad debts are at all.
Bad debts happen when someone is supposed to pay you… but then never does.
Sounds pretty simple, but it actually brings up an important question: why would you be claiming income on your tax return that you didn’t actually receive? (more…)
by Chris | Apr 19, 2016 | Taxes
*I am not a tax professional. This is meant to be educational 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.*
There are obvious perks to working from home. You can avoid the perils of wearing pants and you’re always in close proximity to the fridge.
Well, those perks continue at tax time. The CRA lets you claim a deduction on your home office/workspace under a few conditions…
Do you qualify for the ‘Workspace in your home’ Deduction?
The CRA website breaks it down thusly:
“You can deduct expenses for the business use of a work space in your home, as long as you meet one of the following conditions:
- it is your principal place of business; or
- you use the space only to earn your business income, and you use it on a regular and ongoing basis to meet your clients, customers, or patients.”
(more…)
by Chris | Apr 18, 2016 | Taxes
I have not done my taxes.
I have not really thought about doing my taxes.
But now that we’re 2 weeks from the due date (which is April 30th #taxfact) it’s time to get in a tax frame of mind.
So here are 10 tax ‘tips’… a culmination of all the wisdom I gained by doing the opposite of every single one of these things.
Take what you will from them, but please remember… I’m not an accountant, or a tax expert. Everyone’s situation is different and if you’re not sure… check with a professional. (more…)
by Chris | Mar 2, 2016 | Retirement, Saving, Taxes
If you’ve been in Canada over the last month you’ve probably seen a ton of ads and ‘reminders’ (they’re also ads) to put money into your RRSP.
DO IT! PUT MONEY IN IT!
DID YOU KNOW THAT MOST PEOPLE DON’T?? DON’T BE MOST PEOPLE! JUST PUT THE MONEY IN.
Ughhhhhhh.
That’s because we’ve just come to the end of what wonderful finance nerds the country over call ‘RRSP season’. It’s the time of year when lots of people are making contributions, topping up accounts, and looking to get their tax efficiencies in order.
But most of us… we’re just trying to get through another Canadian winter.
Actually, I think a lot of us just don’t really understand what an RRSP is… yet.
I sure didn’t.
I thought I did… but if I’d been asked to explain it… it would have probably sounded like this…
“Oh ya, an RRSP… um.. You just get one, and it’s for retirement… and you should really have one… but I don’t have one… I guess I should do that.”
I mean… why would you even need to read the rest of this post?? I think that definition is pretty clear.
But in case it’s not, today we’re going to break it down, and I mean really break it down. We’re going to talk about what an RRSP actually is, how it works, and whether it’s the right tool for YOU and your life.
Because let’s be honest… RRSP’s are great, they’re an amazing and pretty powerful tool for long term savings, but after I learned how they worked… I stopped contributing to mine.
It wasn’t the best tool for me, and it might not be the best tool for you either! (more…)
