CCA is the annual tax deduction for assets that depreciate over time, e.g. furniture, equipment, buildings, etc. As a rule of thumb, buy the required depreciable assets before the year ends, as opposed to waiting until the next year. Work with a tax accountant to make the most of the CCA deduction.
3. Consider Splitting Your Income
As one of the most effective small business tax planning strategies, income splitting is a great way to reduce the marginal tax rate. The reasoning behind this is simple: any portion of your income that is transferred counts as a business deduction, provided that it’s reasonable.
Hire a family member but make sure the income offered matches the service. If you end up paying them an exorbitant monthly sum for basic administrative services, you’ll most likely get your claim rejected.
We suggest going over the updated CRA guidelines for more insight.
Tax Accountants in Edmonton
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We specialize in helping small businesses optimize their tax position. Our team assiduously reviews your tax returns and identifies opportunities for tax savings. We ultimately want to help improve your bottom line by making sure you’re only paying what’s required by the law and nothing more.
If you need help with your tax filing and compliance, give us a call at 780-863-2224.
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