Is It Really Worth Thinking About Potential Tax Savings?
When tax season rolls around many people start to pay more attention as to what potential tax credits could be available to them. They usually rely on their knowledge of the more common ones that have been around for awhile, and often don’t realize that there may be new ones or old ones that they are now eligible for.
Potential tax savings can go far beyond the standard type tax credits. One of the advantages of using a good quality and experienced Toronto tax accountant, is that he can put his knowledge of these to work for you. Instead of you having to spend hours of frustration trying to decipher all the tax laws to see what you can use to your advantage he already knows this, and can apply it to your tax filings where appropriate.
While this type of tax approach is really advantageous to the personal tax filings it can be even more so when related to business taxes.
For example, a person who owns a small business as a sole proprietor may now be in a business position where he can enjoy some substantial savings with reduced tax rates by incorporating his business.
In some circumstances it may be more to your benefit to lease a vehicle as opposed to buying one. This is something you can discuss in detail with your tax preparer. This professional knows what potential tax savings can be realized as a result of this and whether in your circumstance this is the smarter thing to do.
Then also there are split income options that a couple may be eligible for. It may be that the person with the higher income can absorb all of the expenses and the lower income producer can then focus on potential investments. Trying to determine how this can be done and comply with the appropriate tax regulations can be a real challenge. By asking your tax accountant about this possibility he can explain it to you in terms that you understand. You can then make an informed decision as to whether this is something you want to do.
Some types of investments can also realize you some potential tax savings as well, where as other could put you into a higher tax bracket. You can ask your tax expert for some advice regarding investments and how they would relate to your tax situation.
All of the issues discussed here are common ones that we advise our current clients about and we would be pleased to serve you in the same manner as your Toronto Accountant. Give us a call now at 416-398-1700.