The Small Business Tax Help Blog

Posts Tagged ‘marriage’

Congress ready to tackle expiring tax cuts

WASHINGTON — Lawmakers returning to Washington for a lame-duck session next week already have identified their top agenda item — tax cuts enacted during the Bush administration that expire at the end of the year.

Remarriage after Retirement

Question: Small Home Business Tax Help (Canada only)?

I started a small home based business (Avon) primarily so I could potentially save on taxes (I’m a student who needs every cent I can get).

Could any tax experts or other home business owners please tell me:

-How much money do I need to make in order to claim write offs/tax credits? Do I just not claim my income if it’s below this amount?
-What exactly can I write off?
-What other tips and tricks should I know?

Thanks!

Answer: There is no specific amount of money that u need to make in order to claim the write offs and credits. However, the guideline is that there has to be a reasonable expectation of profit, meaning that your business will probably generate income (after expenses) someday.

The fact that you are a studuent and that your goal appears to be claiming taxes and credits may make your business not having a reasosnable expectation of profit. My tax exeperiences with home based comestics and amway business indicate that these "self employed" part-time persons get reassessed to disallow their expenses by the CRA for not having reasonable expecation of profit. Periodically, the CRA has audit projects on these self-employed businesses like yours. Most ended up with their expenses disallowed, and thousand $ of comestics, or tupperware sitting in their basement (not sold). In your case, you might end up with comestics that you will use yourself for years or decades. The only person that makes money is your supplier selling you the stuff. A waste of time and money.

But dont let the above discourage you. You might have a chance to make money and therefore eligible to claim expenses if you have a good business plan, and know lots of people and friends who will be your customers.

If allowed, you can deduct any expenses to earn the income, which include cost of housing space for your office and storing your supplies, CCA of office equipment, car expenses, etc. See attached link for other expenses http://www.cra-arc.gc.ca/tx/bsnss/tpcs/slprtnr/bsnssxpnss/menu-eng.html

GOLDX(TM) to Offer 30% Tax Credits to New BC Investors

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 7, 2010) - CDN Gold Exchange Corp. ("GOLDXT") - GOLDXT which is being launched as a leading web based exchange for trading in allocated gold bullion and gold linked structured products announced today that it will begin offering BC investors 30% tax credits pursuant to a $5,000,000 financing which it expects to close shortly. CEO J. Bradley Hall ...

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