Allied Self-Employed Resources

Archive for the ‘Insurance’ Category

As a Self-Employed owner what are some ways that I can save on my taxes?

Hear are 4 easy tips for the self-employed and business owners to save on their taxes and make your money go further:

1. Splurge on office furniture

If you are self-employed or a small-business owner, consider accelerating the purchase of new business equipment or office furniture that you may have been planning to do in 2010. You are permitted to deduct under the “half-year rule,” one-half of a full year’s tax depreciation in 2009, even if you bought it on Dec. 31. For 2010, you can then proceed to claim a full year’s depreciation. For computer equipment purchased after Jan. 27, 2009 and before February 2011, you can write off 100% of the cost in the year of acquisition — with no half-year rule.

2. Consider a low, low loan

The government’s prescribed interest rate is set at the all-time low of 1% until at least Dec. 31, 2009, providing couples with a significant income-splitting opportunity. Under this strategy, the higher-income spouse loans funds to the lower-income spouse at 1%, with interest paid annually by Jan. 30 of the following year.

If the loan is made before Dec. 31 while the prescribed rate is 1%, any investment returns above the 1% rate can be taxed in the hands of the lower-income spouse. Note that even though the prescribed rate varies quarterly, you need only use the rate in effect at the time the loan was originally extended.

3. Contribute to your children’s future

If you have a child or grandchild who has never participated as a beneficiary in a Registered Education Savings Plan and who turned 15 sometime in 2009, Dec. 31 is the last chance to contribute at least $2,000 to his or her RESP to be allowed to collect the 20% Canada Education Savings Grant for 2009 and create eligibility for the grant in 2010 and 2011. If you miss the deadline, the child or grandchild will not be eligible for any grants in the future.

4. Give big

Dec. 31 is also the last day to make a donation and get a tax receipt for 2009. Keep in mind that gifting publicly-traded securities with accrued capital gains to a registered charity or a private foundation not only entitles you to a tax receipt for the fair market value of the security being donated, but eliminates any capital gains tax as well.

Allied Self-Employed Resources Inc. Calgary, Alberta

Your Own Business, Your Future Success, Your One Resource

I need health and dental insurance for myself / family and if I am incorporated will I have a problem getting something?

When you are incorporated you obtain the ability to implement a benefit package that is structured so that you only pay for the benefit as you need to use it. This will provide you with amazing opportunities to save on personal taxes and utilizing your corporate dollars. All of this adds up to more money in your personal pocket while continuing to have 100% coverage.

Allied Self-Employed Resources Inc. Calgary, Alberta

Your Own Business, Your Future Success, Your One Resource

How is disablity insurance affected if I have an Incorporated Company?

Will it be more difficult to collect disability insurance when the claims are based on personal income, and a large majority of my income is invested in my corporation?

The answer is no. The Edge has a disability plan specifically designed for the self-employed person making it the most flexible benefit plan that you can get. The Edge disability plan allows you the option of using your gross revenue to calculate benefits available. An ASR membership is an important factor to you in the event of a claim due to the fact that your membership fees include your monthly bookkeeping, quarterly statements, personal and corporate tax returns.

Allied Self-Employed Resources Inc. Calgary, Alberta

Your Own Business, Your Future Success, Your One Resource

I am getting the cheapest vehicle and home insurance rates in the market, no one can touch them, why should I consider changing?

If you are getting the best rates in the industry you need not consider changing, however it costs you nothing to get An ASR preferred rate quote that our insurance providers offer.

Allied Self-Employed Resources Inc. Calgary, Alberta

Your Own Business, Your Future Success, Your One Resource

What risks are there if I do not have liability insurance?

If you do not have liability insurance you will be sued personally for any negligence or accidents relating to any and all work you or your employees provide. Many general contractors and or owners will not allow you on their job sites without it.

Allied Self-Employed Resources Inc. Calgary, Alberta

Your Own Business, Your Future Success, Your One Resource