As a business, you've got the requirement to declare your income you receive from your commercial activity and also, you're entitled to deduct expenses incurred to earn your income. Our specialized team of accountants can educate you on the deductions you're entitled to and that we concentrate on servicing independent contractors and land agents within the Toronto area.• Accounting for work-in-progress and disbursements• Independent contractors tax returns• Full cycle bookkeeping and account reconciliation• Payroll services, remittances and T4 preparation• HST, WSIB and other remittances• income planning and management• budget explanation• Budgeting assistance How can the self-employed in Canada save taxes? Home office expenses If you are self-employed and work from home, you can deduct a portion of your household expenses. The portion of household expenses that can be deducted is determined by calculating the percentage that the size of your workspace at home is of the total size of your home. For example, if your home office is 15% of the total square footage of your home, then 15% of the household expenses can be deducted. The salary will be tax-deductible to you and tax-free for your children. The reason for doing such things is to ensure there's a bona-fide relationship between yourself and your family members, that will help refute any challenges by the Canada Revenue Agency.3. Lease a vehicle save taxes for the self-employed in Canada Self employed Canadians can save taxes by leasing a vehicle for their business. The percentage of the vehicle operating costs that can be deducted is calculated as: (Total KM's Driven for business purposes / Total KM's Driven in the year) x 100 For example if you drove 12,000KM for business purposes during the year and 20,000KM in total, then 60% of your vehicle operating costs can be deducted. Incorporate to save self-employed taxes in Canada By incorporating your company, your business profits will be subject to a very low tax rate of 16.5%.DisclaimerThe information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Sajid Shaikh or Accu-Counts shall not be liable for any problems that arise from the usage of the information provided on this page.
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