Whether it is personal or for a corporation, you’re coming up to a specific date that (for tax purposes) makes a difference. It’s wise to be aware of how investments and purchases around this time can affect your bottom line so you can make the right decisions at the right time.
Pay attention to these four year-end tax tips and spare yourself the feeling of wishing you had acted when the time was right. After December 31, there is no going back.
1. Review Your Investments
The first thing you have to do is you have to look at… Continue reading
As a Kelowna accountant I often get asked by my clients if they should buy or lease a company vehicle.
The answer to this depends on the company and the individual using the vehicle. The difference between leasing and buying is often a cash flow and philosophy decision, versus a tax driven decision.
Determine what you can comfortably afford to spend each month on car expenses and work backwards. When you lease, your payments are usually substantially lower because they have a residual value depreciated from the vehicle, effectively making leasing cheaper than buying.
Small business people would be doing themselves a huge favour at tax time by becoming what I call ‘receiptaholics.’ If you become a receiptaholic, then at least you have the backing to deduct something if it can be claimed as a business expense. I don’t pay for anything in cash because cash receipts get lost and don’t get deducted. I pay for everything with a credit card so I have documentation of what I’ve spent money on. That all being said, you can easily find… Continue reading