Vehicle Related

Expenses

You can claim the following vehicle related expenses:

– gas– Oil changes– Repairs– Toll charges– Parking– Insurance– Tax depreciation (if you own)

or lease payments (if you lease)

For more information please check out http://madanca.com/blog/what-can-independent-contractors-deduct-accountant-mississauga/

Importance of keeping a log

book

In order to substantiate your motor vehicle claims, you should keep a detailed logbook to track the business/personal use of the vehicle.

For more information please check out http://madanca.com/faq/do-i-need-to-keep-a-logbook-to-claim-motor-vehicle-expenses-on-my-return-what-should-i-include-in-the-book/

Training Costs

Deductibility

Training costs are only tax deductible if they relate to maintaining, updating or upgrading an already existing skill.

-Course fees paid to maintain license are deductible.-Fees paid to obtain your license are intangible asset.

For more information, please check out http://madanca.com/learn/canadiantaxforum/can-i-write-off-training-costs

Declaring Losses

The following is a major redflag and puts you at risk of being audited:

– Reporting consecutive years of business losses

– Reporting rental losses from a property because you charged below market rents or you are claiming excessive repair costs

For more information, please check out http://madanca.com/blog/reduce-risk-beingtax-audited/

Tax Account Number

– Mandatory to obtain a tax account number so the CRA can track your tax filings

Withholding Tax

– Withholding tax applies at a rate of 25% on the rents that you collect in Canada

NR6 Form

– This form reduces the withholding tax

Tax Issue for Non-Resident

Investors

NR4 Slip– This slip reports the gross rents you collected and the total

withholding tax you remitted to the CRA.– You have to collect this form no later than March 31st of the

following year or you will face a penaltyAnnual Tax Returns

– Annual tax returns must be filed– Section 216 tax return is due by June 30th of the following

yearFor more information, please visit

http://madanca.com/blog/non-resident-tax-on-rental-properties-in-canada/

Continued...

Home office deductions for

real estate agents

Those who run a home office are able to claim: - Insurance -Property Taxes-Utilities -Mortgage interest -Repairs-Alarm-Rent

Conditions: - Primary place of business, or- Continuously used to meet

clients. For more information, please

visit http://madanca.com/blog/deducting-home-office-expenses-save-money/

Three tier structure for investment properties The Three tier structure is

designed for and used by real estate investors. It consists of three corporations:1) A management corporation2) A Real Estate company3) Holding corporationFor more information, please visit http://madanca.com/blog/benefits-three-tier-structure-real-estate-investors/

Limited Partnership:Classified as a flow through for tax purposes, meaning that only the investors are liable for tax.

Under your own name:Expenses are tax deductible

Limited liability Corporation:Double taxation

C Corporation: Three layers of tax including estate tax and withholding tax.For more information, please visit http://madanca.com/blog/tax-guide-for-canadians-buying-us-real-estate/

7. Buying real estate in the US

Management corporations

for saving tax

Step 1 – Create a New Corporation Step 2 – Determine Expenses to ChargeStep 3 – Charge for Labour HoursStep 4 – Write Monthly Cheques to Management Corporation.Make sure management agreement exists.For more information, please visithttps://www.youtube.com/watch?v=SE5IkyeAm0s

For more information, please visit us at: madanca.com

https://www.facebook.com/MadanCharteredAccountant

https://plus.google.com/+MadanCharteredAccountantMississauga/posts

https://www.youtube.com/allanmadan

Additionally, you can check out our 20 free tax secrets at http://madanca.com/free-tax-secrets/20-free-tax-secrets

Disclaimer - The information used in this presentation is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided in this presentation.