This document provides tips for making various business and personal expenses tax deductible. It suggests deducting costs such as office parties, business travel including "continuing education" seminars in desirable locations, home office expenses by charging rent to one's business, equipment purchases made towards the end of the tax year, and hiring and paying family members for work. It also discusses strategies for income splitting between an individual and incorporated company to minimize taxes owed. The overall message is that taxes can be reduced through creative accounting and maximizing deductions.

1. Presents:
Write It Off!

2. What Is The Largest Single
Expense In Your Life?

3. Tax!

7. 43.6%

8. Tax Evasion
versus
Tax Avoidance

10. Taxpayer Bill Of Rights
“You have the right to pay no
more and no less tax than what
is required by law”
- CRA, Publication RC4471

11. The Game

12. How Can I Make
This Expense
Tax Deductible?

13. The Game becomes one of
Intellect
and
Creativity

14. Get Smart!
Get Creative!

15. Choose Yours Carefully
The best tax professionals are
fantastic communicators
And
highly creative problem solvers
Not
simply technicians
Make sure these traits are present in the
professional that you choose.

16. The Usual Stuff!
Advertising
Salaries, Wages & Benefits
Business Taxes/Fees/Dues
Start-Up Costs
Telephone & Utilities
Delivery Expenses
Professional Fees
Insurance
Rent
Office Supplies
Loan / Line Of Credit
Interest
Management &
Administration Fees
Meals & Entertainment
Business Travel
Gasoline
Automotive Maintenance
Insurance
407ETR
Depreciation of vehicle
Lease payments

17. Write Off Vacations
• The cost of business travel may be fully
deducted, provided the business nature of
the trip can be demonstrated.
• Hotel, airfare 100% deductible.
• Meals are still 50% deductible.
• My Doctor and Dentist clients always have
“continuing education” seminars in places
like Bora-Bora and Tahiti. All are fully
deductible .

18. Write Off The Office Parties
• Six “Office Parties” are allowed per year.
• You can spend up to $100 per employee and
deduct it 100%.
• Reasonable costs spent on existing or
prospective clients can be 50% deducted.
• Do some business at the party!
• Product demo, sales pitch or educational talk

19. Deduct Your Kids
• I recommend the child must be at least 14
• A market (minimum) wage must be paid to
the child
• A paper-trail must exist for the transaction
(eg. cashed cheque).
• The child must do actual demonstrable
work for the business.

20. Make Your Mortgage
Tax Deductible (partly)
• Charge rent to your business or
corporation
• Must be used more than 50% of the time
• Heat, Hydro, Water
• Mortgage Interest
• Home Insurance
• Maintenance Expenses

21. Buy A Home Using Your
Corporation’s Money
• Employee loan is tax free as long as you
are purchasing a home for own use.
• Repayment must be clearly articulated. I
recommend a loan document be drawn
up.
• Repayment must be within a reasonable
time.

22. Buy New Equipment Towards
End Of Tax Year
• Depreciation (CCA) On Computers is
100% of it’s acquisition cost. This is
treated as a direct business expense.
• Depreciation (CCA) on Automobiles is
30% of it’s acquisition cost. This is treated
as a direct business expense.

23. Income Splitting
Corporation Versus Sole Proprietor

24. Personal Versus Corporate
Tax Rates
• Personal Top Marginal Rate
• 48% combined federal and provincial
• Incorporated Company “Small Business
Deduction” marginal rate
• 15.5% combined federal + provincial

25. Income Splitting
Employee With Employment Expenses
Sole Proprietorship
Incorporated Company

26. Income Splitting
Majority Of Expenses
Attributed To Individual:
Individual
Employment Expenses
Sole Proprietorship
Majority Of Revenue Attributed To
Incorporated Company

27. When Should You Incorporate
When revenues are robust enough to be in
excess of tax losses, then it’s time to think
about incorporating.

28. Thank You!