4 Ways To Save Money On Taxes For Next Year

Kelowna accountantKelowna accountant, Ken Davidson tackles four different areas business owners can take advantage of to save more money on their taxes.

How to save money on taxes is truly a difficult question because the number one way to save taxes is to write off all of your business expenses but somehow, it doesn’t ever seem to be that simple. There are certain habits and practices you need to adapt, to ensure you are organized with the data you need to help your accountant achieve tax savings for all eligible expenses.

1. Keep Good Records & Understand What Is Deductible

When you think about saving taxes and writing off expenses, you have to be keeping good records. I always tell my clients to become a receiptaholic and get addicted to collecting, saving and preserving every receipt you get.

If you save the receipts and they are true business expenses, they can be deducted and you reduce your taxes. When you think about $100 worth of receipts in a small business corporation, that’s worth $13.50.

I’m not suggesting you go and buy something you don’t need because that is 100% taxation, aka you are wasting money. Simply make sure you are keeping good records of every thing you do spend money on for your business so your Kelowna accountant can determine the eligible expenses you can write off.

Kelowna accountant2. Make Sure You Are Structured Properly

Whether you are a sole proprietor, partnership, corporation, a corporation with a trust…all of these different ways to structure your business and using them properly is the biggest way to save money on your taxes. If you’re structured incorrectly, it is going to end up costing you more money!

3. Keep Good Records of Your Vehicle Usage

A lot of people slip up on this one but if you keep good records of your vehicle usage, you can end up saving more on your taxes. As accountants, there are many different ways that we can use that information to achieve tax reduction but only if the information has been tracked and is available!

4. Do You Have a Home Office?

If you have a home office and you are eligible for home office expenses, keeping track of that information is important. You can consult your professional advisor or Kelowna accountant to determine if you are eligible and exactly how much you will save.

Have any questions about business expenses and their eligibility for tax savings? Leave a comment below or message Ken on Twitter at @KenDavidsonCA


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