7 façons d’économiser sur les taxes professionnelles

Want to save money on your business tax bill? Although I cannot guarantee you a refund, I can tell you that these are the best tips to follow in any case.

The calculation of income and expenses must be done before the end of the year . But others, like funding a retirement plan, can be done any time before you file your tax return.

• Financing a retirement plan

Setting up and funding a retirement plan for yourself and your employees can save you money  on taxes, and it’s easier than you think. Just make sure it is a qualified scheme (i.e. qualified by  the General Directorate of Public Finance ), so that you can take advantage of these tax savings.

• Take advantage of tax credits to reduce your business income

Tax credits are the federal government’s way of encouraging businesses and individuals to do (or not do) things. This article lists many tax credits  that your business can use to reduce its income.

For example, you can get tax credits for hiring employees, doing research, “going green,” providing access for employees with disabilities and the public , and providing employee health coverage.

The most recent is a family leave tax credit that allows small businesses to receive a credit on amounts paid to provide family leave benefits to employees. This credit is unfortunately no longer available.

• Purchase of equipment, vehicles for depreciation deductions

Companies have the opportunity each year to amortize purchases of professional equipment and vehicles. These depreciations (called depreciations) can be made more quickly. Sometimes you can take  the entire cost  the first year you own and use the hardware. .

• Deduct gifts, awards and bonuses

You may be able to deduct some of the cost of gifts given to employees, customers, and vendors. In addition, you can deduct  employee awards and bonuses.

All of these deductions have restrictions and limits, so read carefully and consult your tax advisor before making any decisions. You should also know the tax implications of these employee benefits.

Business owner bonuses may also be deductible. You can seek advice from a business consulting and management agency for business advice .

 

• The synchronization income

Synchronization income is a method of rolling income over from one year to the next. You must first determine which year will have the highest taxes, due to two factors:

• Your business income
• Corporate tax rates.

Take out your crystal ball and discuss this with your tax advisor.

Calculating expenses works the same way as calculating income, but in reverse.  Place expenses in the year  with the highest taxes, to reduce your net income that year. Before the end of each year, review your current expenses and, if you think you could benefit from a reduction in income, prepay some of these amounts.

You can also increase your expenses  (and decrease your income) by stocking up.

• Amortize outstanding payments to reduce revenue

If your business operates on an accrual basis, year-end is the time to review your accounts receivable. First, find the customers who aren’t going to pay. You can write off the amounts they owe as “bad debts” and deduct those amounts from your business income to save taxes.

• Check with your tax advisor

Before making any decision that might affect your corporate tax return or spend money to save tax , consult a tax professional. Be sure to choose someone who can help you throughout the year, not just at tax time. An accountant or licensed agent is your best bet.