59

Congratulations on an amazing rise on salary. Please pat yourself on the back for such an accomplishment. The best thing you can do is to hire a competent tax specialist. Here in the US, it is typically an accountant and they would tell you that there is not much they can do. Maximizing tax favored retirement accounts is about the best one can get away ...


10

Yes, you can decrease your tax burden by suffering business losses. The only expenses you'd be claiming would be actual spending you do. So, if you spend $100 in advertising and have $0 revenue, you have $100 in losses which saves money on taxes but costs you money in total. The exception to this is home office expense, since you are already paying rent. If ...


4

In your scenario, a 30k business loss (if allowed) would mean that you are now taxed on 70k of income instead of 100k. So, if you were taxed at 30% you would be losing 30k to save 9k in taxes. The IRS is very aware of fraud potential with small business losses. If you are running a legitimate business (actually trying to make money) then you don't ...


4

If you own any works of art or ecologically sensitive lands you can donate those to a city government/museum/conservation trust/accredited charity and receive a tax refund for the appraised value of the donation. This would only net you a tax benefit if the appraised value was greater than what you spent, but it would deprive the government of money if that'...


3

Minimizing taxes at your scale is more an exercise in determining which activities the government decides to tax less rather than an exercise in finding clever loopholes to exploit. You lack the resources (and the tax burden) to make use of the more intensive tax avoidance strategies in a feasible or efficient manner. Sorry, but no tax havens, no accountants,...


3

Generally, probably yes, to the extent of the proportion of the residence which is used for business purposes on a time basis as the dividend of the total amount of the expense. There's a whole bunch of rules, which are only briefly touched on in the intuit article, which govern what you can do and which govern the consequences of them. The biggies are: ...


3

Sure, if the business loses money, which means that you'll have to spend more than it earns. But the definition of "business expense" is fairly narrow. For example, you can't deduct your rent as a "business expense" just because you have a side business. It's still a personal expense and is not deductible. You can only deduct expenses that are directly and ...


1

Are you just looking for ways to reduce your income tax without spending money? If so you could: Max out your RRSP contribution every year. Donate a gift of certified cultural property (like artwork) to a designated institution or a public authority (like a museum). Transfer any high earning investments to your TFSA. Donate ecologically sensitive land to a ...


1

Look at how it looks to the IRS: You in 2018 tried to have a side business, it had some expenses and some sales. Then in early 2019 you closed the business, and then you decided to donate an amount equal to the profits to a charity. Because you didn't structure your enterprise as a non-profit, or as a charity, you have to treat your endeavor as a side ...


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