Business Expenses (Canadian taxes)
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- Glitterati_Duane
Anyone know where to put promotional items like business cards and design competitions in quiktax online? I can't find a section for them. Also... Does anyone know where I would put printing expenses in general?
Thanks in advance
- pylon0
Can't help you there, but I'll give you some advise: get a professional (not HR Block) who specialises in either small-business or arts-related media to do you taxes. It'll be the best three-hundred bucks you spend all year. You can really lead yourself down the garden path by using things like quicktax, etc.
Depending what bracket you fall in, it's also a great idea to incorporate yourself — even if you're just a numbered company you can always use another name for banking purposes, etc. 'Company 123456789 Inc, doing business as'.
- transmission0
why do you recommend incorporation, pylon?
- pylon0
Tax breaks, no personal liability, etc.
The company takes on its own tax entity and pays you a salary. Any expenses for the company are pulled from the company coffers and not your own; hardware, software, and so on.
There are many more reasons, but these are the main ones for which we did it. Once your revenue gets higher it really helps. You can only write off so much stuff personally. If you're thinking of hiring or taking on freelancers it makes a great deal of sense.
Talk to a specialist though, don't take my word for it. I'm a designer not a tax-lawyer.
- Glitterati_Duane0
Thanks pylon. I'm only freelancing part time so it's not worth while for me to incorporate. I've been told to contact a pro before. It's just hard to part with that money when I'm hurting for money as it is.
- Ah, gotcha.
Trust me, the money you pay to a pro you'll save on tax in the long run.pylon - So I hear. Maybe it's time then... Thanks againGlitterati_Duane
- cheers matepylon
- Ah, gotcha.
- alicetheblue0
yeah - get a pro
I just give him rundown of expenses
studio/ promotion/ expenses/ car in Excel.
he figures out the rest :)