Business Taxes and Accounting

Business taxes, accounting, and write-offs

Whether you're running a small business or a large corporation, there are a number of deductions the Canwest team can apply to your situation to reduce taxes. There are many different ways to file a tax return and the Canada Revenue Agency laws for business and corporate tax filing change regularly, so our consultants take current laws and your goals and objectives into account to come up with the most beneficial solution for you.

Some of the following may be applicable to your business; ask a Canwest consultant to find out what other deductions your business may be eligible for.

Home and Furniture/ Equipment

Regular use of your home for business purposes allows you to expense portions of your mortgage interest, property tax, insurance, maintenance costs, and utilities. Additionally, any business-related furniture, hardware or software may also be deducted according to their depreciation value; this applies to all businesses, not just those operating from the home.

Transportation, Travel, and Meals

You may claim car-related expenses such as gas, oil, insurance and maintenance costs, relevant to the percentage of business-related use. You may also deduct 50% of meal costs related to the promotion of your business. Additionally, you may also claim up to 100% of all costs associated with business travel, with the exception of meals.

Education

Attendance of any educational event (seminars, workshops, trade shows, etc.) related to your current or future business, subscriptions to educational publications, and research-related fees are all deductible.

Salaries

Salaries paid to others to perform work for your firm are all deductible expenses.

Income Splitting

Income splitting is designed to arrange your income so that it is divided amongst family members with lower incomes (i.e. your spouse and/or children). Each individual you designate pays taxes according to their share, resulting in decreased taxes due to lower marginal tax rates; because your income has been sectioned into smaller portions, the aggregate taxes paid by you and your designates will be less than what you alone would pay on the entirety of your income.

Corporate Shares

Similar to income splitting, you can reduce the amount of taxes paid on dividends by dividing your shares with your family members; the amount of tax paid in aggregate is reduced due to the lower marginal tax rate. The Canwest team recommends seeking professional advice for this option as there are many variables to consider, such as voting and non-voting designations, buy-back rights, and minor status.