Small Home Business Tax Help (Canada only)?
I started a small home based business (Avon) primarily so I could potentially save on taxes (I’m a student who needs every cent I can get).
Could any tax experts or other home business owners please tell me:
-How much money do I need to make in order to claim write offs/tax credits? Do I just not claim my income if it’s below this amount?
-What exactly can I write off?
-What other tips and tricks should I know?
Thanks!
There is no specific amount of money that u need to make in order to claim the write offs and credits. However, the guideline is that there has to be a reasonable expectation of profit, meaning that your business will probably generate income (after expenses) someday.
The fact that you are a studuent and that your goal appears to be claiming taxes and credits may make your business not having a reasosnable expectation of profit. My tax exeperiences with home based comestics and amway business indicate that these “self employed” part-time persons get reassessed to disallow their expenses by the CRA for not having reasonable expecation of profit. Periodically, the CRA has audit projects on these self-employed businesses like yours. Most ended up with their expenses disallowed, and thousand $ of comestics, or tupperware sitting in their basement (not sold). In your case, you might end up with comestics that you will use yourself for years or decades. The only person that makes money is your supplier selling you the stuff. A waste of time and money.
But dont let the above discourage you. You might have a chance to make money and therefore eligible to claim expenses if you have a good business plan, and know lots of people and friends who will be your customers.
If allowed, you can deduct any expenses to earn the income, which include cost of housing space for your office and storing your supplies, CCA of office equipment, car expenses, etc. See attached link for other expenses http://www.cra-arc.gc.ca/tx/bsnss/tpcs/slprtnr/bsnssxpnss/menu-eng.html
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| | TORONTO ONT MY26/2PM/93 LG 3 RING ORB CANCEL on 2 CENT SMALL QUEEN $0.99 |
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| | lot no 114-1; 2 X 5 cents Nickel five cents Canada 1944 1945 $1.50 |
| | Canada Newfoundland one cent 1940 – near UNC – chocolate brown $9.99 |
| | 1932 Canada 1 Cent World Coins $3.19 |
| | 1933 Canada 1 Cent World Coins $3.19 |
| | CANADA KM32 1943 XF-SUPER NICE OLD VINTAGE WWII CENT PENNY COIN FREE US SHIPPING $0.60 |
| | 1953 CANADA 1 cent No Shoulder Fold $1.50 |
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| | Canada 1¢ Cent 1944 ICCS MS-64 Red $176.99 |
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| | CANADA COIN, 1 CENT 1910 YEAR, $39.99 |
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| | 1944 Canada Penny ICCS Graded MS-64 Red $100.79 |
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| | 1945 Canada Penny ICCS Graded MS-63 Red $12.29 |
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| | ► Canada small cent 1933 vf money coin canadian penny $0.99 |
| | 1979 CANADA ONE CENT PENNY UNCIRCULATED CONDITION!!! $0.75 |
| | 1928 Canada Small Cent $0.99 |
| | Roll of 1921 Canada Small Cents George V (50 Coins) $78.66 |
| | 2 VARIETIES 2002 CANADA PENNY P & NO P $0.99 |
| | ► Canada small cent 1932 money coin canadian penny circ $2.19 |
| | CANADA PENNY Lot plus more $0.01 |
| | Roll of 1937 Canada Small Cents George VI (50 Coins) $49.16 |
| | 1950 Canada 1-cent ICCS Certified MS-65; Red $59.00 |
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| | Roll of 1957 Canada Small Cents (50 Coins) $4.92 |
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| | 1950 canada small cents UNC red $8.85 |
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| | 2 VARIETIES 2005 CANADA PENNY $0.99 |
| | 1999P Canada 1 Cent one Canadian copper Coin penny $9.99 |
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| | 1940 Canada Canadian PENNY 1 ONE CENT small cent COIN $3.99 |
| | 1989 Canada 1-cent ICCS Certified MS-65; Red $24.58 |
| | 1 Cent – Canada 1940 – Georgivs VI D G Rex ET IND IMP $1.25 |
| | 2012 Canada Penny $0.99 |
