Early this year many of us take new resolutions. In fact, by these resolutions, we simply seek to develop better habits. Some decide to do more physical activity, others will opt for more healthy eating habits and others want to spend more time with their families. This time of year brings re-balancing, a time of reflection and planning. This year, have as resolution to take control of your finances. Treat yourself to a good planning and use professional help to achieve your goals in all simplicity.
Tax return vs tax planning
Make use of tax planning. Tax planning and production of the statement of income are very different expressions. The tax return is done once a year, however, tax planning should be conducted throughout the year and well before completing your tax return in order to gain maximum benefit. Indeed, each decison yields financial tax consequences. Whether using public transit, buying a property, choosing from the benefits offered by the employer or implementing a strategy for investment purchases. All these choices will affect your taxes. How to make the right decisions throughout the year? It is simply to plan and discuss with your tax expert. The few dollars spent on tax planning will help you realize substantial savings when preparing your tax return.
Some good reasons to use tax planning
- Maximize tax deductions and tax credits
- Be on the lookout for the new tax legislation in order to gain maximum advantage
- Knowing the balance of tax payable before the date of payment in order to better budget
- Provide mechanisms to reduce the tax payable (planned giving, RRSPs, etc. …)
- Guide investment strategies based on imposition (for example; stocks, bonds and dividends present different taxation rules)
- Select the mode of compensation (self-employment income, employment, dividends, interests)
- Incorporate or not?
- Planning to buy a property and knowing its impact on your finances and taxes (income property vs single family residence)
- Some decisions are too important to be taken lightly, with a professional from Impôts-Ici! you will make the best choices and know their impact on your tax and financial situation.
Reminder : For companies wishing to purchase new computer equipment
Computer capital cost allowance (CCA)
The accelerated capital cost allowance (CCA) for eligible computers announced in the 2009 budget allows businesses to claim 100% of computer costs (including systems software) purchased after January 27, 2009 and before midnight, January 31, 2011.
President, Finance360 inc.
Financial Security Advisor
Partner of Impôts-Ici! inc.