Looking for information on what I can write off for taxes

[Mar]

The documents from the government are very long and confusing, I'd rather pay someone to either do it for me or explain it to me. Is this what places like H&R Block do? Do they charge for a consultation like that? What's a normal price to have someone do your taxes? What about having someone look over your finances and give you pointers on how to modify things to pay less taxes or maximize returns?

Example questions:
- can I claim a capital loss on my property if it's my principle place of business?
- if I collect something and resell some of them, can I register a business against it and show a loss on the business?
- if I can only write off 50% of something, can I simply set up another business, show a minimal income on the business and use that to write off the other 50%?

I'm not looking for anything illegal, just creativity.

[revelations]

Got this tip from a tax lawyer and a CGA....

Do NOT go to HR block unless you have a very, very simple tax return to do like a single T4 and RRSP's.

[whiskas]

taxtips.ca

[DJ_NAV]

Corp. taxes usually cost between 1500 to 2500.

[KappaSigma]

Why incorp and setup a business if there is minal income cause your losses are than trapped in the corpand you cant apply them to personalincome unlike if u were just a propertiership.

[Mar]

Originally posted by KappaSigma
Why incorp and setup a business if there is minal income cause your losses are than trapped in the corpand you cant apply them to personalincome unlike if u were just a propertiership.

If you make over $39,000 in a year you're required to register your business.

[KappaSigma]

Originally posted by Mar

If you make over $39,000 in a year you're required to register your business.

Says who? Maybe for GST purposes but where does it say you need to incorporate based on $?

[tenth]

Originally posted by Mar

If you make over $39,000 in a year you're required to register your business.

I'm not sure if that number is right (it's $30k for any rolling 4 quarters for GST/HST Purposes), but regardless registration and incorporation are quite different. You can register your business as a sole proprietor, which would not be incorporated.

With regards to why incorporate due to loss restriction, you want to incorporate profitable businesses, in order to defer tax and take advantage of other tax planning opportunities. If you're expecting losses for years to come, that benefit probably isn't there, although there are still many other reasons to do it (legal liability and safeguarding of personal assets being the biggest).

EDIT: Back to the original question, depending on the size of the business I would either look at a small book-keeper/tax adviser, or if it's getting to be pretty significant in size/complexity, one of the small-mid size accounting firms in town (Kenway Mack, MNP, BDO, etc). Based on the original question, I suspect any small tax adviser should be able to answer your basic questions.

[KappaSigma]

Originally posted by tenth

I'm not sure if that number is right (it's $30k for any rolling 4 quarters for GST/HST Purposes), but regardless registration and incorporation are quite different. You can register your business as a sole proprietor, which would not be incorporated.

With regards to why incorporate due to loss restriction, you want to incorporate profitable businesses, in order to defer tax and take advantage of other tax planning opportunities. If you're expecting losses for years to come, that benefit probably isn't there, although there are still many other reasons to do it (legal liability and safeguarding of personal assets being the biggest).

Ding ding ding.

[tenth]

Will take a crack at the example questions.

- can I claim a capital loss on my property if it's my principle place of business?
If it's your house you're referring to, then you shouldn't claim CCA (capital cost allowance, essentially depreciation), as that would then screw-up your principal residence exemption on your house (selling your personal house is generally tax-free). However, you would be able to claim deductions for utilities, property tax, etc, pro-rated for the proportion of your home that constitutes your principal place of business.

If you have leased space or owned property specifically for the business, then you can deduct lease payments (if leased) or CCA attributable to the building (not land) if owned.

- if I collect something and resell some of them, can I register a business against it and show a loss on the business?
There is a general restriction on deductions to the extent it relates to a business. Will leave this for your adviser, as more facts would be needed.

- if I can only write off 50% of something, can I simply set up another business, show a minimal income on the business and use that to write off the other 50%?
Not really, no. The 50% restriction on deductions really only commonly applies to meals and entertainment and capital losses. You can't get a full 100% deduction of either without double claiming the same expense.

[Mar]

I need an accountant to do my taxes, does anyone have a good one? I've heard mixed reviews about the tax shops, I'm looking for someone that's experienced with self employment and can for sure get me the lowest pay in possible. Does anyone have a guy they use that's very good?

I can wait until after the rush if I have to, I think I have until June to file as a business owner.

[dawerks]

The great thing about accountants? Most of them are competent. It's their ass if they screw up, so no worries.

I have a great accountant (he actually saves me money in ways that I don't have time to think of), and he doesn't charge much compared to what he does.

[Mar]

I'm asking for suggestions for accountants I can use. I'm looking for contact details.

[Mazstyle]

Originally posted by Mar
I'm asking for suggestions for accountants I can use. I'm looking for contact details.

Me too.

The quotes I'm getting for doing corporate taxes, are $1700-2000....

[ReasonOne]

I know a great accountant by the name of Troy Stanley.

http://www.stanleyaccounting.ca/

I think his number is 403-241-2030

He's also an ex-CRA auditor, so he knows his stuff - and he will go to bat for you. My family and my in-laws use him and he's been great (I do my own taxes, btw..... as I spent some time working for CRA in my past).

If you want more details just go to his site or PM me.