Starting a business takes a lot of time, energy, and of course – money. And every penny you can get back in rebates can make a difference to your bottom line. To save the most this year, here are 5 tax rebates all entrepreneurs should know about.
If you conduct more than 50% of your business from home, you can claim a percentage of your home expenses. The way the percentage is determined by the size of your office space in relation to the square feet of your home. So if your office equates to 20% of your home, then you would be able to claim that amount from your home expenses.
What is considered a home expense?
Anything you use to operate your business, such as phone bills, utilities, home insurance, internet, furniture, office equipment, computers and mobile phones, cleaning materials, property taxes, and even your mortgage interest can be claimed.
Investment Tax Credit
Did you invest in a qualifying property or expenditures? If so, a portion of these expenses can be claimed under the investment tax credit. You can even claim unused credits from previous years on your future taxes.
Input Tax Credit
If your business is earning over $30,000 a year, you’re required to have a GST/HST account. But did you know that you can recover the GST/HST that you paid on items for business purposes? For instance, if you bought supplies for your store or restaurant, you could claim the entire amount of GST that you paid for those items.
Hiring new employees can also get you a nice tax rebate. If you pay more into your Employment Insurance account this year than you did last year, you are eligible for a credit from the CRA. An increase in EI payments can earn you up to $1,000.
Soon you’ll also be able to write off your energy-efficiency updates. As of today, the federal government is working to finalize the details of their newest energy rebate. In fact, they plan to ease the carbon-price burden by giving small businesses a rebate payment to cover some of the costs of making energy-efficiency upgrades. Keep your eyes peeled for this to take effect later this year so that you can take advantage of next years tax forms.
If you’re a budding entrepreneur who is planning to start or who have recently launched a small business, it’s essential to take advantage of all the available rebates and credits. At The Beacon Group of Assante Financial Management Ltd., we can provide you with all the information you need to efficiently run your business. From startup to an exit plan, we can set up a tax plan that will increase your personal wealth and put more money in your pocket. Learn more about our services today.