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LIST OF TAX WRITE-OFFS:
Advertising
Bad debt (If customers cannot pay you and you’ve tried your best to collect, you can write off their balance)
Bank charges and fees
Business start up costs
Business tax, fees, licenses, dues Business – use of home expenses
Utilities Rent Insurance
Delivery, freight
Fuel Costs Insurance
Legal, accounting and other professional fees
Maintenance & Repairs
Management fees
Meals and entertainment
Auto expenses
Office expenses
Salaries
Telephone
When to file for an HST number and register your business: When you register your business as a business name, it is a small fee, but then the ministry recognizes that the name is now yours (no one else can use this name). When you file for an HST number you now have to file taxes on what you collect. You can only charge tax if you have an HST number, which means that you are paying that tax back to the government. You do not have to register for an HST number if you are making less than 30k per year. If you are making over 30k in a quarter, or in the past year, you have to register your business. Accountants can do this for you, or you can do it online, by mail, or by telephone.
Top Tax programs: There are many online tax programs, and I recommend Tax Prep, Cantax, or Turbotax. It is important to note that you need to be very careful when doing your own taxes. If you expense the wrong things, then that will be suspicious to the government and you may get audited. If you use one of these services, make sure that you do pay to have a professional look over it. This is for the benefit of your business.
Tax Rules in the United States: The IRS regulates taxes, and you will file using form 1040. While writing off expenses and overall regulations are more or less the same as Canada, the specific rates and details may differ. Have your local accountant look over your business for specifics.
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