It is very common for tax laws to change frequently. Hence, it is important for small business owners to constantly keep up with these changes to ensure they are compliant with CRA guidelines.
However, keeping up with these ever-changing tax guidelines can seem like a mammoth task without the help of a knowledgeable representative. With over 30 years of experience, CPA4IT can represent you and negotiate with the CRA to ensure that your tax filings are done and your company is compliant.
Make sure to read the entire article to learn more about CRA guidelines regarding a sideline business.
Allowable Tax Deductions
As a business, you are entitled to claim a wide range of allowable tax deductions. This can include everything from:
- office administrative expenses
- business travel
- entertainment
- promotion
Provided of course, that these expenses are legitimate and reasonable.
Tax losses
In many cases, these expenses can turn into tax losses, which can be deducted against other sources of income. If you are just starting to report a new business, Canada Revenue Agency will probably accept “start-up” losses for three years or so. Generally, Canada Revenue Agency’s tolerance to loss claims for a number of years may depend on whether the “business” has a personal or hobby appearance.
Still not sure? We are here to help! It can be difficult for business owners to keep up with all the changes in the tax laws while adding value to their business. Here at CPA4IT, we attend and speak at some of the largest accounting conferences in the world, which keeps us aware of all the latest information. With our Audit Representation, you will have the peace of mind that our team of professionals will defend your rights, in case the CRA comes knocking at your door.
If you would like to schedule a free consultation with a small business tax accountant at our firm, book a free consultation with our experts.
