Many times, individuals simply forget the task of Income Tax Filing in Scarborough and fail to understand that it is only increasing the burden on your pocket. If you are a small business owner, then filing income tax on time has so many ulterior benefits for you. In this post, we have listed some of those benefits.
- Commercial Insurance
Any commercial insurance premiums on building and equipment that are being used in your business, you can deduce these, applicable under home-based business insurance. It must be noted here that home based business insurance is different from home insurance and former is commercial while latter is personal in nature. So if you are operating your business from home, getting a business insurance and having it deduced is a good idea. - Use of personal vehicles
Many business owners who work from home use their personal vehicles for business use. In that case, you can write off a portion of your automobile expenses like fuel costs, licensing, insurance, maintenance, repair costs, and also to some extent the interest on money you borrowed to purchase that vehicle. It’s important to keep a separate track of home and business use of your vehicles like the kilometers driven for business purpose and so on. - Property Taxes and Mortgage Interests
This also comes under home based expenses. You can deduce a part of your property tax and rent or mortgage you are paying on your home if your home is also your business sphere or you’ve separately rented an accommodation for business purpose. Use the chart to calculate business use of home expenses given by CRA for the purpose. - Miscellaneous Expenses
Besides mortgage payments and property taxes, there are numerous small expenses incurred such as cost of heating the structure, power usage, maintenance, plumbing, internet for commercial use and so on. A part of these miscellaneous expenses can be deduced. You must maintain receipts, sales invoice or any voucher that substantiates your claim. - You can accrue these benefits
If you haven’t claimed your Capital Cost Allowance Claim, then you can get carry forward the claims indefinitely and accrue the deductions. You can use these when your expenses surpass your income. CRA calls it the unused work space in home expenses.
Therefore, small, home based business owners can claim a multitude of benefits at the time of Income Tax Filing Scarborough. For more info on how to go about these claims, visit Z Rahman Professional Corporation, the tax experts in Scarborough.