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Business or Corporate Tax Tips |
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1. If you are in a low income or loss position in the current year, you may wish to wait to claim a capital cost allowance deduction until a higher income year.
2. All property acquired in the year that was available to be used can be depreciated. Ensure purchases are made by year-end.
3. Since only property that you own at the end of the year is available for a capital cost allowance, sell early in the next year.
4. The salary paid to a family member may allow that individual to become eligible for CPP and RRSP contributions.
5. For tax purposes, the capital cost of a car is limited to $30,000 plus HST (previously PST and GST). This means that if you purchase a $40,000 car for your business, you will lose a portion of the capital cost allowance deduction. Also if you lease a car for business purpose, the maximum amount that you can claim as business expense is $800 a month. |
