Filed under: Business Tax Planning, Canadian Business, Canadian Business Channel, Corporate Tax Planning, Individual Tax Planning | Tags: 75% of net income, charitable, charitable donations, corporate, Corporate Tax Planning, donations, enterprises, Golioth, green accounting, limit, personal, planning, tax
Golioth Enterprises
Hello to all, I wanted to share some information that you might find interesting. Do you contribute to charitable organizations (NFPO’s) and suprised that as a personal income tax payer don’t get the full tax credits you think you should get? Well there is a way to get around that! Revenue Canada allows you to contribute up to 75% of you corporate earnings to charitable organizations and write off the amount dollar for dollar as oppposed to the 29% deduction you receive above and beyond the $200.00 floor amount set by CRA.
Question is would you rather have tax deductions dollar for dollar through your business or 29% on your personal return. I like the dollar for dollar becuase there’s 2 benefits. 1) Giving makes you feel good and you are assisting the process of sustainable living for all!
2) Giving makes your company look good! In the eyes of public image you become top dog!
Need I say more? Giving is a wonderful thing and under the name of your corporate entity you get so much more bang for you buck. This is truly a win-win situation.
Now remember you cannot create a loss by giving away to charity; but it is allowed up to 75% of your net income as allowed per you Part IV corporate income tax. For more information check out: Donations p.48
Until the next post, happy networking to all. May everyone enjoy abundance and prosperity.
Cheers,
Saverio Filippis
Golioth Enterprises
Filed under: Business Tax Planning, Canadian Business, Canadian Business Channel, Corporate Tax Planning, Individual Tax Planning | Tags: business, deductions, employment, enterprises, expenses, green accounting, income, incorporation, tax
Golioth Enterprises
When working for your own business, there are sometimes perks to owning one own’s business. The deductions you will be able to claim in terms of travel, meals and lodging are beneficial and tax deductible. When setting up a business if it is an incorporated entity one may use travel time as a business deduction. The general rule is that as you the employer/owner of your corporation can sign what is known as a T2200 “Declaration of Conditions of Employment ” I have attached the form which can be found on the Revenue Canada website which explains what is to be included. Also this is the link to read up on what is allowable and what is not, http://www.cra-arc.gc.ca/E/pub/tg/t4044/t4044-07e.pdf. There are mileage stipulations for allowed travel, but if you meet these requirments you may use these deductions. As always when dealing with any govenrmental agency it is imperative that you keep well detailed records that can be substantiated in the case of an audit arising. If need be, everytime you get a receipt write on the receipt itself where and when the expense occured and for which job it was related to; so you can trace it back to an invoice that was sent out to a customer to relate the expense to cost of earnings in case of audit. This is one of the many blogs that I will be writing about in the following days, if any further clarification is needed, please do not hesitate to contact me.
Sincerely,
Saverio Filippis
(780)-904-7032
filippiss@goliothenterprises.ca
