Originally posted by Buster
- You can't really write off "part of your house". You can deduct certain expenses generated from your house, but there are rules here that are worth reading.
- Don't bother with leasing a car through the corporation. The CRA doesn't like this either, and it doesn't end up being an advantage.
- If you pay yourself a salary, you will need to remit for EI/CPP.
- The rules to avoid being called a PSB are a bit grey, and worth reading. But suffice to say it is more than "just getting one more contract". Your mix of revenue is also important (as a percentage).
- If you are an IT contractor, then good luck. The CRA literally came up with the PSB rules to address IT workers doing this.
That's funny, I know a ton of IT contractors doing exactly this. A couple who are really PSBs waiting to get busted, and some building a legit corporation who have been fine for a decade and will be fine for a decade to come, audit or no audit.
As for the PSB thing, know the four-fold test inside out and backwards and how it applies to your business. Structure yourself so you can legitimately pass all aspects. As a self employed contractor, you can be EI exempt.
If your car is cheaper than the gov't accepted rate to run, keep it personally and bill your company for legit business mileage. If it's more expensive to run (big diesel truck etc) and/or you use it entirely for work, let the company own it. Track personal miles and your acct can have your corp charge you a taxable benefit for that usage.
And you absolutely can write off a portion of your home that is legitimately used for your business. Have your corporation pay you a reasonable amount of rent for the space.
Don't try to fuck the CRA, as they fuck back and fuck hard, but don't be afraid to take genuine deductions you're entitled to. Most importantly, get a good accountant who you've been personally referred to by another business owner and take their advice, not mine or Busters.
Originally posted by heavyfuel
like fuck if I ever want a toy that has an engine. Bikes, sleds, quads, no fuckin way. I much prefer to get on a mountain bike and earn it like a man. Real toys don't have engines. "Motor" and "sport" should never be associated with each other if you ask me.
Last edited by carson blocks on 03-08-2017 at 05:00 AM
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