Some Mississauga Taxes Strategies for Small Business Owners

 Yes, paying taxes in Mississauga is something that you do not often appreciate with your hard-money going away from your hand as a small business owner. Still, you can reduce Mississauga taxes to lower your burden of paying taxes with some strategies as a small business owner. Let us discuss those strategies:



  1. Small Business Income Tax Deductions: If you run a home-based business, you would like to deduct your relevant home-based expenses; still, not all small business owners qualify for tax deductions. You should run the majority of your business operations at your home if you want to claim for reduction in taxes. As a qualified person in terms of tax deductions, you can deduct expenses, including utilities, maintenance, insurance, vehicles, and travel.


  1. Income Splitting: The more you earn, the more you would need to pay in taxes. You can split your small business income with a spouse, partner, or child as an active worker and lower your tax rate


  1. Maximize RRSP (Registered Retirement Savings Plan) Contributions: The deductible RRSP contributions can also help you eliminate the taxes. The money in your RRSP grows as tax-free unless you start withdrawing; still, your tax bracket will be lower than usual that way.


  1. Tax Credits: As a small business owner in Mississauga. or a Canadian taxpayer, you can always claim a non-refundable tax credit for your income tax and reduce federal & provincial/territorial taxes. The personal amount can change yearly as per the factors of inflation and some other taxes. The non-refundable tax credit is used so that payable taxes become zero with some restrictions


Donations to the registered Canadian charities can also earn you a tax credit; however, non-registered Canadian and American charities are excluded from that list. If you somehow forget to claim a charitable donation or find a receipt after the tax deadline, you can claim the receipt for the previous five years in Mississauga. It means you cannot claim all of the charitable donations you may make in the current year. You can also claim some medical expenses in the next year too.


The Bottom Line:-


With the following four Mississauga taxes strategies, you can save your money as a small-scale business owner:


  1. Small business income tax deductions will apply if you are a home-based business owner and run most of your operations at home.

  2. With income splitting, you can reduce your tax burden.

  3. Some RRSP contributions can also minimize your taxes.

  4. You can claim for non-refundable tax credited for your income tax also.



GTA Accounting (https://www.gtaaccounting.ca/) is an accounting firm that offers top-notch accounting and bookkeeping services for small business owners in Mississauga, Toronto, and Oakville at a fair price.

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