Almost all people appear to be unwilling to pay tax. All of them look forward to making millions of dollars by saving on the amount of tax they pay on their annual income. But how is it possible? Can an individual legitimately save on the amount of tax they pay? Yes, it is possible.

1. How Can You Reduce the Percentage of Tax You Pay?
Almost all people appear to be unwilling to pay tax. All of them look forward to making
millions of dollars by saving on the amount of tax they pay on their annual income. But how
is it possible? Can an individual legitimately save on the amount of tax they pay? Yes, it is
possible. Individuals should look to reduce the percentage of tax they pay through some
legitimate tax strategies. Many experienced and skilled accountants are available in
Calgary, which can provide you with useful techniques to help with tax management.
Here are some easy tips for saving income tax in Calgary:
Debt and investment:
With high-priced lifestyle, it is no wonder to find everyone with some kinds of debt and
investment. These are the best places where an individual may be able to save on the tax
amount to be paid. The rate of interest that you pay on your debt may be subject to a tax
credit; however this depends on the type of debt you incur and for what reason. Example
interest paid on a loan for investment purposes is tax deductible, however a loan taken to
purchase a car is not.
Invest in retirement savings plans:
When talking about tax saving investment, retirement savings plans are one of the best tax
savings vehicles provided by the government. It is advisable to hit the highest point while
selecting a particular investment plan.
Salary to your assistant:
Though employees don’t obtain many tax deductions, it is possible to claim the salary or
wages remunerated to assistants. For example, if you hire your spouse as your assistant
for a business you run, it will help you claim for a sizeable tax deduction on the salary you
pay to your assistant and help in circulating your own money within your family and
reducing your overall taxes.
The bottom line:
Maintaining a record of your transactions and annual income and identifying accurate write-
offs to help you save on the taxes can be somewhat challenging. To ensure that you take
advantage of all the tax strategies available to you; you should hire an experienced
accountant who can help you reduce your exposure to taxation. All of the above-mentioned
approaches are lawful, but your bookkeeper would be competent to look into your financial
activities and income to apply a viable method in their tax management.
It all depends on the skills and experience of your selected accountant. There are many
accounting firms in Calgary which offer quality services, but you need to select a particular
one who can meet your requirements.
For more Information on Income tax calgary, Accountant in Calgary. Please visit :
http://diyapc.ca/