Make the Most Out of Your Taxes This FallBrian Jang ON September 25, 2017
Who doesn’t like free money? One way to help you keep your hard-earned dough is to educate yourself on potential tax-deductible expenses. Simply put, deductibles are costs that can be used to lower the amount of income tax you have to pay come tax time. Chances are you’ve missed a few in the past that you’re eligible for. Check out our list of exemptions you might be eligible for, and read our tips on how to make the most out of your tax deductions this fall.
Keep your records
Before you start making any deductions, you need to keep tabs of all your expenses. Whether you choose to track them digitally or physically, the first step is to record all expenses you plan on declaring on your returns.
You don’t need a degree in accounting or library science to do this. A simple file folder system, spreadsheet, or expenses logbook can do the trick, just in case, the Canada Revenue Agency comes knocking.
Log those kilometers
Even though you probably don’t enjoy traffic jams and road rage drivers, at least driving to meet with clients can you some money. Oftentimes, people use their personal car for business meetings outside of the office, and the expenses that go along with those meetings are tax deductible. For example, if 50 percent of the wear and tear put on your car is because of work, you can claim 50 percent of your vehicle’s expenses, including gas, insurance, and maintenance fees.
Own your own business?
Yup, most of the costs to run your business can help keep some change in your pocket. Startup costs, travel expenses, business licenses, advertising, and legal and accounting fees are all tax deductible, along with countless other costs.
It’s also important to remember that in an increasingly digital world, more people are working from home. If you have a home office, the expenses that go along with that are also tax deductible. Everything from heat, home insurance, electricity, and even cleaning materials can save you some money.
Moving for school or work
Leaving the place you call home can be nerve-wracking, but it doesn’t have to be so expensive. If you’re moving more than 40 kms away from where you currently call home, the expenses associated with that move are tax-deductible.
Everything from the costs associated with buying a new home and selling an old home to canceling your old lease is deductible, as well as transportation expenses, storage costs, utility hook-ups and disconnections, and travel costs, including hotel bills.
What’s not deductible?
Ideally, we’d be able to deduct every expense we have, but that’s not very ethical or legal. Unfortunately, school, pets, and clothing are not tax-deductible, but there are some exceptions.
Service animals, such as seeing-eye dogs and guard dogs, are tax-deductible. Clothing can also be tax-deductible if it is an essential component of the job, like a hard hat or steel toe boots.
Still having a hard time deciphering what you can and can’t expense? Don’t worry, we can help. Our team of certified accountants at the BCJ Group are well versed in tax law and can help you make the most out of your return.
Give us a call today at 604-431-0445 for a free consultation.
- Who Can Claim Moving Expenses?
- What are the Implications of Being Declared a Personal Services Business?
- How to Charge Provincial Sales Taxes on Online Sales
- Why You Should Rethink Your Accounting Strategy
- What Can Happen If You Submit Your Taxes After the Deadline?