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5 BULLET FRIDAYS - Tax Mechanic News, Tips, Strategies
Tax Mechanic
February 23, 2024
Bite size tax and finance related information that could save you $$$
Get your Taxes filed.
Attention, fellow business owners! Are you ready to unlock the secrets of tax deductions and boost your returns? Let's explore often-overlooked expenses that could make a big difference during tax season. Did you know that vehicle expenses extend beyond mileage? From parking fees to car washes
🚗 , there's more to deduct than you might think. Plus, home office costs—like utilities and internet bills—can also be claimed if you use a portion of your home exclusively for work. And don't forget about professional development expenses; those conference fees and travel costs can add up. Keep detailed records throughout the year to maximize your savings. If tax complexities leave you puzzled, our team at Tax Mechanic is here to guide you through.
Guidelines for Home Office Expense
The Canada Revenue Agency (CRA) has updated its guidelines for claiming home office expenses for the 2023 tax year. The simplified $2-per-day method introduced during the COVID-19 pandemic is no longer applicable. Employees who worked from home in 2023 must now follow a detailed expense-claim method. To claim expenses, employees must meet specific conditions, including being required by their employer to work remotely and covering related expenses. They must spend over 50% of their work time at home for at least four consecutive weeks in 2023 and obtain a completed and signed T2200 form from their employer. Eligible expenses include utilities, rent, maintenance, and internet fees, while mortgage interest, home internet connection fees, and capital expenses are not deductible. Taxpayers must fill out form T777 and submit it with their tax return by the deadline to claim workspace-in-the-home expenses. Assistance is available for determining eligibility and calculations.
Canada Carbon Rebate is here🎉
The Canada Carbon Rebate, formerly the Climate Action Incentive Payment, aims to assist Canadians in offsetting federal pollution pricing. Eligible individuals and families must file their income tax returns by March 15, 2024, to receive their tax-free payment on April 15, 2024. Residents of specific provinces qualify, and the amount varies based on family status and province, with a 20% rural supplement increase pending Royal Assent. Notable increases include Alberta's individual rebate rising to $900 and Manitoba's to $600. For accurate eligibility and payment details, contact Tax Mechanic. Read more about the Canada Carbon Rebate changes and eligibility criteria. Read more!
RRSP Contribution Deadline
Hey, fellow business owners!
Tax season is approaching, and here's a crucial reminder: the RRSP contribution deadline is February 29th. Before you rush to contribute, let's analyze your options together. RRSP contributions can lower your taxable income and grow tax-deferred until retirement. But consider your financial situation and goals—will your tax bracket change? Are there other financial priorities? Our team at Tax Mechanic is here to help you navigate tax complexities and maximize returns. Take a moment to evaluate your RRSP contributions and book an appointment for personalized advice. Let's breeze through tax season together! 📅 #BookNow
RRSP Mistake most of us make.
Common RRSP mistakes people make. Click to find out!