Business Foundations Ltd’s Post

Small businesses braced for extra capital gains tax burden! The 2024 Autumn Budget included a number of capital gains tax (CGT) announcements, including increases to the main rates. But why will small business owners be feeling particularly targeted?

There are considerable advantages to being the owner of one of Canada’s 1.22 million small and medium-sized businesses. You get to be your own boss, you choose your own hours and you get to work on something you’re passionate about. Plus, business owners have numerous ways to save on taxes. Typically, though, entrepreneurs are too busy with the day-to-day running of their business and planning for the future to focus on tax strategies for business owners. And that’s where this article comes in. Below, we list nine tax-saving tips for small businesses that could save you a tidy sum every year-end. - Employ your spouse and children - Incorporate your business - Maximize tax breaks from RRSPs - Prepare for the sale of your business - Claim your R and D expenses - Other investment tax credits - If you have a home office, claim deductions - If you employ apprentices, you can claim a tax credit - Invest excess cash Discover more strategies for small businesses. We can help with small business tax planning and come up with strategies to reduce your business taxes. However, that’s just the tip of the iceberg of what we can do for you. We can also suggest strategies that will help improve the day-to-day running of your business, grow your business, attract the best employees and maximize your profits. And also help you ensure your business and personal financial plans are synchronized and optimized. Message us anytime to discuss ways to minimize your business taxes and maximize your business’s success. Link to full article here: https://ow.ly/iBR850R0eXy #CanadianBusinessOwners #SmallBusinessTips #TaxSavingStrategies #BusinessTaxPlanning #EntrepreneurLife #SmallBizAdvice #FinancialPlanning #BusinessGrowth #ProfitMaximization #BusinessSuccess #Jenner&Associates #IGPrivateWealthManagement #IGWealthManagement #Femmloot

Small businesses braced for extra capital gains tax burden! The 2024 Autumn Budget included a number of capital gains tax (CGT) announcements, including increases to the main rates. But why will small business owners be feeling particularly targeted?

Is Your Business a Personal Service Business? Many Canadian entrepreneurs operate their businesses with the assumption that they're fully compliant with tax regulations. However, if your business could be classified as a Personal Service Business (PSB), you might face unexpected tax consequences. What is a Personal Service Business? A PSB is a corporation where an individual (often the owner) provides services that, if not for the corporation, would be considered employment. This often applies if you’re working primarily for one client and your work arrangements resemble an employer-employee relationship. Could Your Business Be a PSB? Consider These Factors: 1. Client Relationships: Are you working for a single client in a manner similar to an employee? 2. Control: Does your client control your work schedule and how you perform your tasks? 3. Tools and Equipment: Are you using tools, equipment, and office space provided by your client? 4. Financial Risk: Do you have limited financial risk or minimal opportunity for profit beyond your salary? Tax Implications of Being Classified as a PSB: 1. Higher Tax Rates: PSBs do not qualify for the small business deduction and are subject to higher corporate tax rates. 2. Restricted Deductions: PSBs have limited ability to deduct common business expenses, such as office supplies, meals, and travel. 3. Personal Liability: If the CRA reclassifies your corporation as a PSB, you could be liable for back taxes, penalties, and interest. How to Protect Your Business: 1. Review Client Contracts: Ensure contracts clearly define your business's independence and the nature of the services provided. 2. Diversify Your Client Base: Working for multiple clients can help demonstrate your business's independence. 3. Consult Professionals: Engage a tax advisor or accountant to review your situation and provide tailored advice. 4. Document Everything: Keep thorough records of your business operations, client interactions, and financial transactions to support your compliance. If you suspect your business might be classified as a PSB, taking proactive steps now can save you from significant tax liabilities later. Understanding and addressing these issues early is crucial for maintaining your business's financial health and compliance. Have questions or need guidance on determining your PSB status? Let’s connect and discuss how to safeguard your business! #TaxAwareness #SmallBusinessCanada #PersonalServiceBusiness #Entrepreneurship #TaxCompliance #BusinessAdvice #TaxPlanning

Electioneering is well and truly is underway, but you might be wondering what the different parties have to offer small businesses. Whether it's taxes, regulations, support, or innovation, SMEs are the backbone of the economy and deserve a fair deal. Here's a brief overview of the policies to date, websites, and pledges of the leading parties. https://loom.ly/sn1yv4E

Where will the money come from? Harris proposes huge new tax deduction for more than 25 million small businesses- Harris is set to unveil a proposal to massively expand tax relief for small businesses. The proposal includes expanding the startup expense deduction for small businesses by tenfold from $5,000 to $50,000. It is not yet clear how much the proposal would cost the government or impact the national debt. The answer is: the printing bucks machine will be on working 24 x7, and whatever is necessary will be issued, without any limit, in order to win votes. The inflation it generates don´t care. More communist subsidy policies.

🚀 Top 5 Tax Deductions Every Small Business Owner in British Columbia Should Know 💼💰 Running a small business is no small feat—every dollar counts! Did you know that understanding tax deductions can significantly impact your bottom line? Here are 5 must-know deductions that could save you big: 1️⃣ Home Office Expenses 🏠 If you run your business from home, you can deduct a portion of your rent, utilities, internet, and even property taxes. Make sure to calculate the percentage of your home used exclusively for business. 2️⃣ Vehicle Expenses 🚗 Do you use your vehicle for work? Track those kilometers! Fuel, insurance, maintenance, and even depreciation can be deducted based on your business usage. 3️⃣ Professional Fees 🧑💼 Fees for accounting, legal services, and consulting are fully deductible. Remember, investing in expert advice often saves you more in the long run. 4️⃣ Office Supplies & Equipment 🖨️ From printer paper to laptops, keep receipts for all business-related purchases. These items can usually be written off either fully or over time. 5️⃣ Training & Development 📚 Want to stay sharp in your industry? Courses, certifications, and even workshops related to your business are deductible. Continuous learning pays off in more ways than one! 💡 Pro Tip: Good record-keeping is key to maximizing your deductions. If you’re unsure about what qualifies, consult a CPA (hint: I can help!). 🌟 Let’s make tax time less stressful and more profitable for small business owners in BC. What deductions have you found most helpful? Share your experience in the comments below! 👇 #SmallBusiness #TaxTips #BritishColumbia #SaveMoney #Entrepreneurship

9 tax considerations if you're starting a business as a sole proprietor: When launching a small business, many entrepreneurs start out as sole proprietors. If you're launching a venture as a sole proprietorship, you need to understand the tax issues involved. Here are nine considerations: 1. You may qualify for the pass-through deduction. To the extent your business generates qualified business income, you're currently eligible to claim the 20% pass-through deduction, subject to limitations. The deduction is taken “below the line,” meaning... https://bit.ly/42XZCr0

For 2018 to 2025, an individual taxpayer can take an income tax deduction for up to 20% of the taxpayer's allocable share of domestic qualified business income (QBI) from a partnership, S corporation, or sole proprietorship. In general, qualified business income does not include capital gains or los

I saved a client £6000 in taxes within weeks of working with him. Most business owners miss out on savings because they have no clue what they can save on. Here’s how I helped John Hamilton save over £6,000 with his business Young & Lazy. 👉 Salary Structure: Seems basic, but optimising the salary for both directors made a big difference in tax efficiency. 👉 Mileage Claims: John had never claimed for mileage. By tracking and claiming all their business-related travel, we saved him a chunk on taxes. 👉 Asset Introduction: When John started trading, he never claimed the computer equipment he brought into the company. We helped him sort that out, adding more savings. The result? Over £6,000 saved, maybe more! But it’s not just about the money. As his business grew, he became clear about: - The amount of tax he needs to pay. - How much money he can legally take out of the company. Now, he has peace of mind and a better understanding of his finances. (and an accountant he can rely on 😉) If your business is growing fast and you’re unsure if you’re making the most of your financial situation, drop me a DM. You might be surprised at how much you could be saving.