canadian tax info

Discussion in 'Taxes and Accounting' started by battle river, Sep 17, 2008.

  1. hi all. if you declare as income you can deduct you're vehicle.or a portion anyway. i did 50% and there was no problem.
    I just had the cra check me,while not an official audit they wanted to see what the hell my business was and they had no problem with the vehicle deduction.

    just thought i'd share this:D
  2. GGSAE


    Does that include all auto expenses...i hear what they allow for gas reductions is something retarded, like 7 cents/mile?
  3. hey. i just kept all my reciepts and used 50 % also. I did explain what i used it for though since i work from home.
    i also deducted my new lcd tv and sat dish and they were ok with that also
  4. GGSAE


    I used to trade from home but now in the office I will be chatting with the other guys about all this stuff, i think most formed llc's but i could be wrong.
  5. yeah a corp is the way to go.thats what im in the process os doing. 14% corporate rate is the key.right now im at 39% personal.
  6. If you declare as income, are you taxed on the whole capital gain? I know that if you dont declare as income you're only taxed on 50% of your capital gains.:confused:
  7. yeah if you declare as income you get taxed on the whole thing. thats why i'm going become a corp and go throught that.
    if you're only source of income is trading you can declare as capital gains and hope they dont catch on, but if you only trade part time and have a job job then i would just declare as capital gains for sure. thats the gist of what i got from the cra people and the accountant.
  8. Siwash


    catch on to what?

    Profits or losses from buying and selling securities are treated as capital gains or losses..period from what I have seen.

    If you that is your only source of income, it shouldn't change anything.

    Why mess around with meaningless write offs,when the tax treatment is so different?

    I am not an expert and stand to be corrected..just my 2c..
  9. like i said,thats what i was told by both an accountant and cra. i would rather do capital gains,believe me. if you trade for a living you're supposed to use income, doesnt mean you have to.
  10. Siwash


    I'd get a second opinion, there is a memo on the CRA website, just do a search for it. No law against living off capital gains my friend!

    What part of the country are you in anyways?
    #10     Sep 18, 2008