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Can I write off my credit card statements in Canada?

Discussion in 'Business & Tax Advice' started by Crono, Aug 11, 2011.

  1. Crono

    Crono Registered Member

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    I was just wondering if I just put everything on 1 credit card that I use for business only can it be done, I tend to lose my receipts and it gives me a headache when trying to find them.
     
  2. Crono

    Crono Registered Member

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    How about experience of people in other countries.
     
  3. greyninja

    greyninja Newbie

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    Yes you can write it off using your statements, just as long as you can justify the expenses.

    best to work with an accountant if youre doing taxes for a business, and get a good one that deals with businesses, either sole proprietor or corp. there are a lot of little loopholes to lower your amount owing.

    If youre making more than 100k, i would definitely look into ways of sheltering and converting your income so you pay very little.

    Im actually paying $0 now through some beautiful little loopholes. Its great living in canada, where the rich get richer and the poor and middle class get fucked. hahahaha
     
  4. classifiedcaptain

    classifiedcaptain Regular Member

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    Care to PM a fellow canadian (vancouver BC) some of those loopholes
     
  5. dowser

    dowser Power Member

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    just be creative and don't get caught :D
     
  6. WildDisease

    WildDisease Junior Member

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    If you do you would need to justify it as always but potentially more.

    The reason being is you would stay a lot under the radar if you had two separate cards for personal and business. The same goes for having two separate bank account for both purposes.

    The reason for these is so the CRA does not have as much leverage in arbitrarily questioning the business purposes of your purchases/expenditures.

    Side note: As someone who studied accounting/tax and carries work experience in the field, loopholes for minimizing tax mainly exist for property/business income only and not for earned income. A caveat would be that many other or improperly implemented 'loopholes' have a way of unwinding themselves into tax owings on you later (likely well after you've spent the income too) so just a heads up ;)
    You can piss off Google, Amazon, *******, whoever but huge warning against trying to fool the CRA/IRS in particular..
     
    Last edited: Aug 24, 2011
  7. scottx1995

    scottx1995 Regular Member

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    if i register a business as a sole proprietor... any income earned through that will it still be added onto my personal tax ? or will that be taxed separately as a business tax.
    because of my current employment my personal tax rates are close to 30% but i don't want to add anymore to it as it will increase the tax rate as well. so i thought registering a business and operating it seperately as a sole proprietor would be a better option as i think business tax rates are like 18-20%

    what is the LLC equivalent in Canada? and can i have it registered with a PO Box address ?

    im in Quebec, Canada.
     
  8. Enigma32

    Enigma32 Regular Member

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    Sole proprietorship is basically just a DBA... its worthless. You need an LLC
     
  9. scottx1995

    scottx1995 Regular Member

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    err.. im in canada
    what s the equivalent of an LLC ?
    whats DBA ?
    and when you say worthless you mean all the money earned will still be taxed as my personal income ? :S
     
  10. dowser

    dowser Power Member

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    There is no such animal like llc in Canada, unfortunately we have to have a full blown incorporation with all the expenses...
     
  11. WildDisease

    WildDisease Junior Member

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    If you want to control your personal income and you have business income, the best thing to do is incorporate. You can take a reasonable salary within your company that won't push you over the limit.

    Alternatively you can also control your personal income by only issuing dividend payments in an amount that won't carry you to the next progressive tax bracket. Family members may also buy shares into your corporation using their own money and they will be taxed individually on any dividends they receive.
    (just remember dividends before tax credit from CPCCs are personal income at 1.25 times the actual amount received)

    Of course if the after-tax cost of arranging your accountant to do this (a deductible expense to your company) is less than the extra tax cost you'd incur by going over your current personal rate, go for it.
    Your accountant also needs to be careful when arranging your salary and dividends as the CRA may question these cash disbursements further (you're never quite invisible from them).

    DBA = Doing Business As (In) Your Name (i.e. sole proprietor)
    LLC = Not available in Canada
    LLP = Mainly available for professional accountants/lawyers/doctors/engineers in Canada
    Inc/Corp/Ltd = Full incorporation in Canada available to majority of business types.
     
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    Last edited: Aug 25, 2011
  12. l0goz

    l0goz Jr. VIP Jr. VIP

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    Lets say my income doesn't even come directly into my bank account. but goes to my girlfriend's saving account. And that being said, my income does not even come from a canadian employer nor worked under canada work/business laws. Do I still have to pay taxes?

    (note: i have not registered a business yet and making around $30k/year online income thru paypal)

    The reason why I asked its because I know people from South America who opens a Saving Account in Miami(US) and these people are not even Americans neither they have a Resident Visa. But they Deposit $$$ in their accounts and they don't have to pay taxes. I asked them why they don't pay taxes, I was told because the money was not even worked on US. Its just their money from a foreign country exchange into $$$.
     
  13. scottx1995

    scottx1995 Regular Member

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    awesome Info ! thanks !
    so basically me having it as a self proprietor, I will still have that income added onto my personal income be taxed at that rate..


    for an LLP- i am an engineer but thats my profession and my business is not really engineering related so i can still have an LLP ?? or the best option would be Inc/Corp/Ltd hmm I have to look into it.
    REQ is not very helpful :(
    lol