Thursday 5 December 2019

Best Tax Preperation Options for You

To help you find your way around the tax labyrinth, we have screened the books of leading accounting firms and consulting tax specialists.

Tired of being caught in traffic for two hours a day? Consider working at your home. This choice is all the more attractive as you can deduct certain expenses such as electricity, heating, maintenance, property taxes, insurance and mortgage interest. The breakdown of expenses must be based on the number of square feet used for work purposes. "If you live in a five-room house with three bedrooms and one of them serves as your office, you can deduct 20% of the eligible expenses.


Deduct your canvassing expenses

Expenses incurred to recruit or retain your clients, such as food and beverage expenses, as well as entertainment expenses such as tickets for a sporting event, may be deducted. At the federal level and, 50% of expenses can be deducted; however, Watson adds a second limit of between 1.25% and 2% of your turnover. For that you need to use the Taxation Return Preparation Watson services.

Do not report the allowance for your car

If your employer pays you an allowance for the use of your car, it is not taxable provided it is "reasonable" and calculated based only on the number of kilometers traveled for the job. By "reasonable", tax authorities generally mean an allowance not exceeding $ 0.53 per kilometer for the first 5,000 kilometers and $ 0.47 for the other kilometers. It is essential to keep a record of actual trips.

Get your GST and QST refunded

If, as an employee, you deduct expenses from your employment income, you can claim the rebate of the GST and QST you paid on these expenses. These include taxes on mandatory contributions to professional orders such as the Barreau du Québec, maintenance of the vehicle used for work, gasoline and depreciation (which represents a portion of the purchase price of the vehicle ).

Selling Your Business: Reduce Your Capital Gain

Did you realize a capital gain on the sale of shares in a small business, farm property or fishing property? Claim the deduction, which can reach $ 750,000 (lifetime limit), or $ 375,000 of taxable capital gain. In the end, it will make $ 90,000 more in your pockets. The Taxation Return Preparation Watson services are essential there.

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