Are you looking for ways to save taxes in Canada? 

As providers of income tax preparation in Oakville, we are aware of many ways to save taxes in Canada and have saved thousands of dollars in taxes for our clients.

Some of the best ways to save taxes in Canada are:

1.  Opening a Tax Free Savings Accounts (TFSA)

The number one way to save taxes in Canada is by opening a Tax Free Savings Account (TFSA).

A TFSA is exactly what it sounds like:  a mechanism to earn tax-free investment income / gains on funds invested.  A TFSA could be an interest bearing bank account, mutual funds or stocks.

The maximum annual contribution limit for a TFSA is $5,000.  Contributions to a TFSA are not tax deductible and withdrawals from a TFSA are tax-free.

As a Chartered Accountant who offers income tax preparation Oakville, I have recommend TFSA’s to my business and personal clients, because they are a tax efficient way to earn investment income.

For further information, please see the article Tax Free Savings Accountant written by Income Tax Preparation Oakville Accountant, Allan Madan

2.  Create a Family Trust – Income Tax Preparation Oakville

The number two way to save taxes in Canada is to create a Family Trust.

Consider using a Family Trust to hold investments such as real estate, stocks, or bonds on behalf of your children and family members.  Any income or gains generated by the investments inside the Family Trust can be distributed to them.

This is an excellent way to split income with your family, as well as pass on the growth in your investments to them.

You and your spouse will generally be trustees of your Family Trust, thereby maintaining control over the assets held inside the trust. 

“I have structured many Family Trusts for my individual clients,” says income tax preparation Oakville accountant, Allan Madan

For further information on how family trusts are used to save tax for Canadian businesses, please see Estate & Succession Planning for Canadians

3.  Deduct income tax preparation fees

The number three way to save taxes in Canada is deduct income tax preparation fees.

Fees paid to an accountant to prepare your personal tax return can be deducted for tax purposes against any investment income, business income or rental income that you have earned in the year.

Therefore, make sure you keep a copy of your Personal Tax Return Preparation bill from your provider of income tax preparation Oakville.

4.  Contribute non-cash assets to your RRSP

The number four way to save taxes in Canada is to contribute non-cash assets to your RRSP.

You’re probably asking yourself, “How can I contribute non-cash assets to my RRSP?”.  The Canada Revenue Agency permits taxpayers to contribute the following non-cash assets to your RRSP:

• Mutual funds
• Guaranteed investment certificates
• Shares of public companies
• Corporate bonds
• Mortgages on real estate in Canada
• Life insurance policies
• Gold and silver bars or equivalent certificates of ownership

By making non-cash contributions, you will still receive a RRSP deduction and the investment income earned inside the RRSP will not be taxed.

Before undertaking this strategy, please speak with your financial advisor and your provider of income tax preparation Oakville.

For more information ways to save taxes in Canada using RRSP’s see Accountant Toronto – 5 Secrets to Saving Taxes for Canadians

5.  Deductible employment expenses in Canada

The number 5 way to save taxes in Canada is to write-off all deductible employment expenses in Canada.

So, what are the deductible employement expenses in Canada?  They are:

• Travel expenses
• Automobile expenses – see Accountants in Oakville – Save Taxes Now with Powerful Tax Strategies
• Cost of supplies
• Salary paid to assistant
• Home office expenses
• Office rent
• Union and professional dues – see Tax consultant Mississauga – How to save taxes in Canada
• Legal fees

To see what deductible employment expenses in Canada you can claim, please speak with an Income Tax Preparation Oakville Accountant.

About the Author – Income Tax Preparation Oakville – Contact Us Now  

 

Allan Madan is a Chartered Accountant who offers income tax preparation in Oakville, Ontario, Canada.  He has years of experience in the area of personal and business tax return preparation.  Allan’s experience enables him to identify many ways to save taxes in Canada for his clients.  To learn more about Allan Madan, please see Income Tax Preparation Oakville

Tags: Tax Return Preparation Oakville

This entry was posted on Sunday, March 28th, 2010 at 9:12 pm by superAmin and is filed under Tax Tips 2010. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.