|I just looked at my T4 and saw how much income tax I paid over the last year. Having a home based business will take some of the bite out but there is more that can be done.
If you go to the Ernst & Young web site: http://www.ey.com/CA/en/Services/Tax/Tax-Calculators you can take a look at what could have been. Play with the calculators a bit and see what a difference an RSP or other deductions can make. What if you had a home based business and could deduct some of your household expenses? Did you know that if you run a business from your home, you are eligible for some deductions?
What if you had made contributions to your RSP before March 1? It’s not too late! How much would that reduce your tax liability?
What if you had a TFSA that you had used money from instead of your RSP for that “emergency” you had this year?
It’s very difficult to do much about the previous tax year but with some good planning, you can improve the outcome of the current tax year. What’s that old cliche? Failing to plan is planning to fail?
When you meet with your financial advisor this year, before you do your taxes, have the discussion. Make sure to ask “what can I do?”.
Make it a great day!
P.S. What am I thankful for today? I’m thankful for my experience at Investors Group. I’m thankful for the ability to learn. I’m thankful for life!
What are you thankful for today?