Smart Tax Deductions for Small Business Owners

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Smart Tax Deductions for Small Business Owners
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• Getting the most out of your business tax
  deductions requires more than just the diligent
  tracking and filing of your expenses to
  maximize your business returns, you need to know
  what you can and cant claim come tax time.
  However, understanding what components of your
  business qualify for a tax deduction can be a
  challenge for many owners you are busy enough
  as it is running your business. Prioritizing and
  tracking the expenses you can claim can fall to
  the wayside. Kent Accounting has put together a
  simple list of the best tax deductions for you to
  record and claim to make the most of your yearly
  tax return.

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• Client Hospitality
• Building strong relationships are essential to
  business, and the Canada Revenue Agency
  understands this. When you host your clients and
  take them to events, you can claim that for a tax
  deduction. Relationships can grow stronger when
  theres a connection, so why not use that tax
  break to your advantage and treat your clients by
  taking them to events you enjoy. These events
  give your customers a chance to get to know you
  better as a person, and allow you to receive a
  tax deduction for doing fun things you will
  enjoy! How much on the dollar will you get back?
  Connect with Kent Accounting to find out.

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• Rewarding Your Employees
• The hard work and dedication of your staff should
  be rewarded, and the Canada Revenue Agency knows
  this as well. So how can you build loyalty with
  your employees? Taking them out for exciting and
  unique team building events benefits small
  business owners, as job satisfaction levels
  increase, but it is also a claimable expense. To
  receive a tax deduction for employee parties and
  outings, all employees must be invited to attend
  so make sure to pick a variation of events and
  themes throughout the year that all your
  employees can take part in. How much on the
  dollar will you get back? Connect with Kent
  Accounting to find out.

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• Vehicle Mileage
• Whether you drive a little for your work, or a
  lot, claiming your vehicle mileage is simple. In
  fiscal 2017, for every kilometer you drive, the
  company can reimburse you, tax free, for 54 cents
  per kilometer for the first 5,000 kilometers
  (i.e. if you drive a personally owned vehicle
  1,000 KMs for business purposes you can receive
  540 tax free from the company). Depending on the
  vehicle you drive, the actual cost of driving is
  closer to 20 cents per kilometer, so tracking and
  recording your mileage can add up to extra money
  thats tax-free. To regularly track your
  distance, consider an app for your smartphone or
  go the old fashion route by printing out a simple
  spreadsheet to keep in your glovebox. Does your
  commute qualify as vehicle mileage? Connect with
  Kent Accounting to find out.

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• Company Owned Vehicle
• If your vehicle needs an upgrade, then leasing it
  as a company owned vehicle will allow you to
  claim up to 800 a month in fiscal 2017 for the
  cost of that lease. You are allowed to use a
  company owned vehicle for personal purposes, but
  you do pay personal tax via a taxable benefit at
  year end. Make sure you fully understand claiming
  your Company Owned Vehicle contact Kent
  Accounting here.

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• Home Office
• Claiming your home office on your taxes opens up
  deduction possibilities, such as mortgage
  interest, insurance, property taxes and
  utilities, to name a few. There are rules on how
  much time you must spend working in your home
  office to allow you to claim it on your taxes, so
  consulting with an expert Calgary small business
  accountant will allow you to make the most
  accurate tax filing. Connect with Kent
  Accounting for help calculating the percentages
  of your bills that you can claim on your taxes.

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• Investing In Canadian Privately Held Companies
• Investing in a Canadian small to medium business
  is not just good for your taxes, it is good for
  the economy, and it is good for your fellow
  business owners. There are many great advantages
  to starting your own small business, here are two
  of them

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• Benefit 1 in fiscal 2017, when you earn income
  in a privately held company, you only pay 13 tax
  on those earnings. This allows you to invest 87
  of your money in new business ventures or the
  stock market. As an employee of a company,
  depending on the tax bracket you are in, many pay
  35 tax which would only allow them to invest 65
  of their money. There is a substantial
  difference in investment potential.
• Benefit 2 in fiscal 2017, if you sold a business
  for 824,176, you would pay zero in tax (note
  there are several restrictions on the type of
  business that qualifies). This is one of the
  strongest tax deductions that are available to
  you as a Canadian resident and should be
  carefully considered as you plan your career.
  The Canadian government provides this tax benefit
  as an incentive to you to start your own business.

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• To get a better idea of how to invest your funds
  in a Canadian privately held company, contact
  Kent Accounting today.
• Disclaimer tax rules change frequently and can
  depend on your individual circumstances. The
  above is not to be relied upon as tax advice and
  is meant for information purposes only. Please
  consult a tax professional.

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• Kent Accounting is a full-service accounting firm
  located in Calgary, Alberta. The firm is led by
  Kent Greaves, a Chartered Professional Accountant
  in Calgary with over 18 years of experience
  working with privately owned companies. Our small
  business accountants in Calgary believe in
  prompt, accurate service at affordable rates.
  Running a small business can be the most exciting
  endeavor and the greatest challenge a person can
  undertake were here to help you succeed.