Tax savings for Canadians – 7 tips for individuals!
Taxes are the major source of income for the governments of all countries. These are collected only to be reused for the public by investing in some welfare schemes, offering subsidies, and several other things for the betterment of the country. Canada, one of the most developed nations of the world, has a well-defined taxation system that allows the residents to complete returns easily. Also, paying taxes is compulsory as per law and no one can evade that. However, there are many legal ways to save taxes, about which, we are going to learn in this article.
7 tips for saving tax
Be an entrepreneur
Owning a business in Canada allows you to get tax breaks by deducting expenses that are incurred while operating the business. For example, when you are using a car for your business needs or purchasing something for your company, all these help you to get away from paying taxes, which would have gone otherwise if done for personal needs. However, one must be cautious while doing this and should not take this for granted. If addles the do not hesitate to avail services of Corporate Tax consultants in Toronto or in any other city.
Smart Investing and Buying
When you purchase something by borrowing, you would be liable to pay full taxes on it but when you borrow to invest, you can get certain exemptions easily. Hence, do smart spending. If you are buying goods and services for personal needs, do it with your savings.
Investments
Investing in stocks, shares, etc. will get you some tax breaks because the income isn’t fixed on these investments. However, this is not for every type of income, i.e; if the income is fixed, no tax breaks can be availed on it.
Income splitting
You can save taxes by splitting income with your spouse or by putting money in his/her retirement account. This is more preferable if there is a huge income gap between yours and your’s spouse. It is recommended to take the help of a Tax consultant in Toronto, or any city.
Tax benefits for family
There are a few tax benefit schemes for Canadian families. One such is Child Child Benefit (CCB), which helps families to save some while spending for the child. A parent can avail a tax benefit of up to $553.25 per month per child aged up to 6 years. The amount though varies with the net family income.
Disability Tax Credit
The Disability Tax Credit (DTC) is extremely beneficial for persons with disabilities. It is designed to save some bucks on expenses that are specific for a disabled resident.
Pay taxes on time
As obvious as it is, paying taxes on time will help you to save the money that would go otherwise on missing deadlines.
Following the aforementioned tips will help you to save a hefty amount while paying taxes. To understand the peculiarities in detail and in order to get further assistance, hire a Canadian Tax Consulting Service and employ all the tax-saving measures.
