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Any Canadain Sole Proprietorship Peeps?

Discussion in 'Business & Tax Advice' started by alrightythan, Jan 6, 2017.

  1. alrightythan

    alrightythan Junior Member

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    Hi there,

    I just registered a biz name (Got it approved) and wanted to know what is the next step?

    What can I do to save (I work from home) and looking for some solid information on 'write offs' etc.

    Love to discuss it with someone 1 on 1 on Skype and I will definitely pay you for your time.

    Or if you can recommend a good tax person in Canada (BC), that works too.

    I won't mind paying them either. Just want to kick things off the right way.

    Thx!
     
  2. nickcruz

    nickcruz Junior Member

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    Congrats on the new business! I'm from Ontario. Basically you write off every business expense. If you use a bedroom, hallway, bathroom, kitchen, and dining room for your business and that is 20% of your household, you get to write off 20% of your rent/mortgage and utilities. Of course if you have dedicated business internet and phone lines you write 100% of that off. Any item that it dedicated for business use like computers, software, and anything else you use, is an expense. Whenever you drive your car for business, you can deduct the mileage and depreciation. If you use your car for business 20% of the time you can deduct 20% of the car's payment. If you go on business lunch with clients you can write that off, but no alcohol and no golf courses.

    If you go overboard you will be audited. Use quickbooks or similar and keep good records and keep your receipts. Hire a tax guy for at least the first year to make sure your doing things properly. Pick his brain for everything you can think of.

    What business are you starting?
     
  3. alrightythan

    alrightythan Junior Member

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    Thx for the info and well wishes bud - Well basically the biz is kind of started itself. I use to do SEO for a company, they got bought out by a bigger company and now instead as an "employee", I work as a "consultant". So I thought this might be a good time to start off as a business. Heck if I can pick up a couple more clients like that, things should be alright :) I have an appointment with a tax lady on the 13th, so let's see how that plays out.

    Yes I do use my apartment 100% for business. Would it be possible to write off 100% of my apartment rent, internet and utilities?
     
  4. nickcruz

    nickcruz Junior Member

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    If you live in your apartment, you won't be able to write off 100%. You can't be working in your apartment 100% of the time. So they will audit you and make you pay. But put your cable and internet and phone lines in your business name and you will probably be able to do 100% of those. Also you can say your TV, electronics, and maybe a little bit of furniture is part of the biz and deduct some portion of that too. But it won't be 100% cuz they have some rules on it, but I can't remember exactly. You should also say that you have clients over and meetings at your place.

    There is also lots of tax breaks for buying equipment and for learning new skills.
     
  5. TheNumbersGuy

    TheNumbersGuy Jr. VIP Jr. VIP

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    You are able to write off a prorated amount of your apartments rent & utilities based on the number of square feet you are using for your business. ( The rule requires that you have to use the space primarily for your business to be able to write it off.) You could expense off 100% of your internet.

    TV would be a stretch to expense, unless you can give CRA a good excuse as to why TV helps you generate income & is a legitimate expense for the business (if you are to say that you have multiple clients coming in during the same time and they have to wait in your "waiting room" and that's why you have TV, it could work. Depends on which electronics also, tax rules are grey, which means there is no absolute answer of things you could write off - if you have a legitimate reason for the purchase CRA will probably accept it, but there is no guarantee they will. Office Furniture is deductible.
     
  6. alrightythan

    alrightythan Junior Member

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    Thank you sir. I spoke to my accountant today. Lots of things can be deducted. It's fn awesome! :) Cheers!
     
  7. TheNumbersGuy

    TheNumbersGuy Jr. VIP Jr. VIP

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    Cool, good luck running your business! If you have any more accounting related questions just send me a PM :)