How Can I Reduce My Taxes in This Year?

At Versatile Accounting in Calgary, we provide tax services for individuals and businesses as well as GST services. While we provide you with professional tax preparation at tax time, perhaps our most valuable service comes before. When we have prepared your taxes and you know how much you must pay, we may hear you ask this question, “What can I do during the year to reduce my taxes?” Here is where we can offer our tax planning and compliance services to help you reduce next year’s tax burden. Depending on how complicated your financial situation is your tax planning may be fairly simple or very complicated. At Versatile Accounting, no tax situation is too simple or too difficult. We will work with you to make intelligent decisions about your personal and business finances. And, we have the expertise to help you explore unique business and tax solutions for your unique situation.

Steps You Can Take to Reduce Your Taxes in Canada

Every tax situation is unique. And, there are many ways to reduce taxes that apply to most individuals and businesses. Here are a few examples.

Registered Retirement Savings Plan (RRSP)

An RRSP is a retirement investing and savings vehicle used by Canadian employee’s self-employed persons. You can contribute money on which you do not pay taxes. The money works for you and any earnings such as stock dividends or interest paid will not be taxed over the years. You will typically take the money out when you retire at which time you will have a lower tax rate. If you are saving for retirement, this is an excellent way to do it and reduce your yearly taxes as well.

Medical Expense Deductions

Medical expenses paid during the year are deductible on your taxes. These expenses include premiums paid for medical insurance, prescribed drugs, some medical devices, and payments to medical practitioners. Make certain to keep your receipts because the CRA could ask to see proof of the medical expenses you are deducting from your taxes.

Deduct Work and Business Expenses

This is a major area of savings for a business owner but applies to employees as well. If you have expenses related to your employment and your employer does not cover them, these may be deductible. Make sure to keep records and receipts and ask us at Versatile Accounting which expenses to keep track of.

Business and corporate tax planning can be easy or very complicated. When you work with us at Versatile Accounting, we will help you find and implement tax-saving measures that benefit your business, make sense for your business, and are safe for your business. Although Versatile Accounting can represent you for an audit by the CRA, we will never advise you to use tax avoidance measures that are likely to trigger an audit.

Our job at Versatile Accounting is to take an integrated approach to your tax planning strategies so that you and your business benefit in as many ways as possible. While everyone would like to pay less on this year’s taxes, we will make sure that any tax compliance measures we recommend will benefit you both now and for years to come. This includes advising you on the tax implications of any business transactions you are contemplating.

The Nuts and Bolts of Reducing Taxes in Canada

It is a sad fact of business life that businesses and individuals do all sorts of things to reduce their tax burden and then incur extra expenses because they do not file their taxes on time or do not accurately track business expenses. When you work with Versatile Accounting, our turnaround time for doing your taxes is never more than four weeks. We keep track of when you need to file your taxes and we know how long you can wait to file your corporate taxes and still claim a refund (three years).

And, Versatile Accounting is not just a tax preparation service. We provide a full range of bookkeeping services Calgary, payroll, and accounting services. If you are missing out on business deductions because your bookkeeping is a mess, we will fix that. If your payroll and other business processes are more costly than they need to be, we will help you track down the problems and fix them.

The American writer and filmmaker, Woody Allen, once quipped that 90% of life is just showing up. At Versatile Accounting we always “show up.” We will help you anticipate tax issues and prepare for them. With our help, you will keep better track of deductions and make tax-sensible business decisions that help your business and personal “bottom line.”

For any questions about what you can do to reduce your taxes, contact us today at Versatile Accounting in Calgary.

Post Author: Alberto Alexander