Ways to Save on Tax for Self-employed and Business Owners

Here are more ways for the self-employed people and business owners to save on their taxes:

• Deducting Business Expenses: You can deduct any and all expenses that you incur for your business. These expenses can be in the life of the corporation, or before the incorporation.
• Use Dividends: Dividends are very tax effective. Dividends come out of the retained earnings, which is after the Corporation has already paid tax.
• Make spouses and dependents over 18 shareholders of the corporation: This makes it easy to split income in the form of dividends.
• Utilize Private Health Service Plans (PHSPs). These plans allow you to deduct 100% of your medical expenses through your company. You can also use PHSPs to pay for family members and employee’s medical expenses.

These are just some of the ways you as a self-employed individual or business owner can save tax. There are so many other ways to be able to maximize your tax deductions and credits. Remember, it is always best to see a tax professional to help you with your tax planning. Best, Michael Lepitre