Do you have medical expenses? Wondering if you can use them to reduce your tax owing? CRA has a long list to specify which medical expenses can be claimed on your tax return. Some examples of medical expenses that you cannot deduct are diaper services, non-prescription services, cosmetic surgery, vitamins and gym fees. If you are unsure, the best bet is to keep the receipt and check with us at tax time.
Donating to a charity can make you feel like you are contributing to making a difference in this World, but can also give you some tax advantages. In most cases, you can claim up to a limit of 75% of your income…so the sky is essentially the limit.
To incorporate or not incorporate…that is the question that many clients have asked us. You started a new and exciting business and have been running it as a contractor but people have told you that you should incorporate because you can save on your taxes. The easy answer is, it depends. So let’s dig a little deeper.
Clients often ask us to advise them on what they can do to pay less taxes. The best way to defer your taxes is to invest in an RRSP. An RRSP lowers your taxable income now so you can enjoy a tax savings in the current tax year.