Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Going Out on your own

Self-Employment simplified.
You have made a momentous decision; you are going to chuck the 9 to 5 grind, and get the best boss in the world; yourself. Or your company is downsizing, and they have agreed to keep you on, only now you are on a contract and they will pay you your hours, but no deductions and no benefits-in other words;
We can’t tell you how to make money. We can tell you how to keep what you earn and not face any unfortunate tax consequences of earning a good living.

• Keep a log of mileage for business versus personal mileage
• You can deduct your expenses based on a percentage of business versus personal mileage
• Keep records for Gas, Maintenance, Insurance, etc.
• Auto leasing is deductible
• If you financed your vehicle-the interest portion is deductible.
• You can depreciate your vehicle. (a slow write off based on the cost of the car)

Tax Tips

Many Canadians are looking abroad when adopting a child but it can be an expensive process. However, there is now some tax relief for adopting parents. You may claim a non-refundable tax credit for expenses relating to the adoption of a child up to a maximum of $10,445. The credit can only be claimed in the year the adoption is finalized but may include eligible expenses from previous years.

Turning 65 doesnít mean you canít contribute into an RRSP. The rules do allow you to contribute to your own RRSP up until the end of the year in which you turn 71, or to your spouse or common-law partner's RRSP. But remember, you will need available contribution room.

RSS News: Canada Revenue Agency

Interest rates for the fourth calendar quarter September 7, 2010
Minister Keith Ashfield announces the winners of the second CRA YouTube video contest August 6, 2010
Reminder: TFSA return deadline extended to August 3rd July 26, 2010