Category Archives: Allowable Tax Deductions




  • Advertising
  • Bad Debts
  • Benefit Plan
  • Business taxes, fees, licenses, dues, memberships and subscriptions
  • Delivery and freight
  • Insurance
  • Interest
  • Maintenance and repairs
  • Management and administration fees
  • Meals and entertainment (when entertaining a client)
  • Motor vehicle expenses
  • Office supplies & expenses
  • Legal, accounting and other professional fees
  • Property taxes
  • Rent
  • Salaries, wages and benefits
  • Travel
  • Telephone & utilities

If you do not have an office in another location, you can write off a portion of your home expenses.  We will require the total square footage of your home and the square footage used for business purposes.

  • Heat
  • Electricity
  • Insurance
  • Maintenance
  • Mortgage interest (can be obtained from your bank)
  • Property taxes

Capital cost items:

These are items such as furniture and computers purchased to run your business; only a percentage of captial cost allowance is used each year as an expense to your company.

Vehicle Expenses:

If you are a limited or incorporated company and you drive your personal vehicle for business purposes, keep a log of all kilometers driven for business and a calculation can be done monthly or yearly to recapture the amount as an expense.  Currently the Government allows .53 cents for the first 5000 kilometers and .47 cents for every kilometer after that; however, if you use your vehicle solely for business purposes (you have another vehicle for personal use), you are able to write the entire vehicle off.


TFSA Contribution Information for 2013

The TFSA account contribution limit is going up from $5,000 a year ago to $5,500 for 2013.

Canadians will also see certain income tax and benefit amounts increase two per cent for inflation.

The federal tax bracket thresholds will all increase by two per cent, with the top bracket of 29 per cent not kicking in until taxable income of $135,054 for 2013, up from $132,406 for 2012.

Amounts for several non-refundable tax credits also increase, including the basic personal amount which will stand at $11,038, up from $10,822.

In Alberta, seniors and those who live with them will also be able to take full advantage of the Healthy Homes Renovation Tax Credit that allows people to claim up to $10,000 worth of eligible home improvements that was announced late in 2012.

“Unless someone had a renovation that they were planning to do, they weren’t going to squeeze that in,” Safar said of the measure which could save you up to $1,500.

RESP Contribution Limit | Maximum RESP Contribution | RESP Rules

RESP (Registered Education Savings Plan) Contribution Limit | Maximum RESP Contribution

RESP (Registered Education Savings Plan) Canada is a savings plan that is registered by the Government of Canada to allow savings for a child’s education to grows tax-free until the child is ready for his/her post-secondary education.The child named in an RESP is known as a beneficiary. Unlike RRSPs (Registered Retirement Savings Plans), the contribution for RESP Canada is not tax deductible.

CRA Requirements for Invoices

The CRA’s requirements for invoices depend on the total sale amount.

For sales Under $30, there are 3 pieces of information:
– The name of the business
– The invoice date
– The total amount paid

For sales Between $30 and $149.99, include the above 3 points, plus:
– The total amount of HST/GST charged on the sale
– If the sale has items taxed at different rates, you must show the break-down of the amount of tax at each rate
– The business number of the business issuing the invoice

For sales Over $150, all points above must be included, plus:
– A brief description of the goods or services
– Terms of payment

GST Remittances & Information

Goods and services tax (GST 5%) is a tax that applies on most supplies of goods and services made in Canada. Examples of goods and services for which GST is not charged and collected include:

• Used residential housing

• Long-term residential accommodation

• Most health, medical, and dental services

• Child-care services

• Most domestic ferry services

• Legal aid services

• Many educational services or tutoring services

• Music lessons

• Most services provided by financial institutions

• Insurance policies

• Most goods and services provided by charities

Certain goods and services provided by non-profit organizations, governments, and other public service bodies.

Companies which provide taxable supplies in Canada, and have total revenues from taxable supplies of $30,000 or more in the last four consecutive calendar quarters must register for GST. When registering for GST, the reporting period should be the same as your fiscal year for income tax purposes. Input Tax Credits (ITC’s) can be claimed on the GST return to recover GST paid or owed on purchases and expenses for the business. When completing the GST return, deduct the total Input tax credits (ITC’s) for the reporting period from the GST collected and the result would be the net GST Refund (or payable ).

For companies with $500,000 or less in annual taxable revenues, there is an option to either have a quarterly reporting period or an annual reporting period. If your reporting period is monthly or quarterly, the filing and remittance deadline is one month after the end of the reporting period. If your reporting period is annual, the filing and remittance deadline is usually three months after the end of the reporting period.

For annual filers, if your net tax for the current or previous quarter is less than $3000, then paying quarterly installments is not necessary. For those who need to make installment payments, the deadline is one month after your fiscal quarter end date.

Effective July 1, 2010, GST 5% is replaced by Harmonized Sales Tax (HST) 12% in the province of British Columbia and HST 13% in the province of Ontario.

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