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

Do you want to be a consultant or contractor? Have you thought of becoming incorporated contractor or starting another business?

A recent article in the Calgary Herald indicates self-employed people are happy workers.

From our perspective that is true when certain important details have been taken care of. You can live your dream or find yourself living a nightmare if important details are not taken care of. There are serious pitfalls to self-employment. Up to 50% of start up companies will fail within the first year.

Can you prevent business failure from happening? Some of the reasons that businesses fail include poor management and delegation, insufficient research and planning, inadequate funding, and lack of toughness, persistence and passion for your venture. This is where a business consultant like ASR can help you succeed in your self employment. Good business advice and consulting will enhance your chances to succeed. Management details like your business accounting tax planning and bookkeeping is a start. Market research and marketing your product or service is often not high on the priority list. Start your business right and improve your chances of living your dream.

Most business start ups underestimate the financing required. Experts say that you should calculate what capitol you will require to start and than double it. The self-employed forget that the first 3 years of a start up will not be able to support a full salary. It is easy to lose the passion and drive for success when the bills pile up.

Allied Self-Employed Resources Inc. Calgary, Alberta

Your Own Business, Your Future Success, Your One Resource

Most banks will accept your corporate income for financing. Most of the problems that banks have with using your corporate income for financing is the information that they receive on the income and expenses and how it is reported. This is where quarterly accountant supervised reports go a long way to assist you in your financing requirements. A banker is always impressed when you have a certified accountant able to answer their questions.

Allied Self-Employed Resources Inc. Calgary, Alberta

Your Own Business, Your Future Success, Your One Resource

The first good reason to incorporate is to save you money. A corporation is taxed at a lower tax rate than you are as a sole proprietor. Why pay more taxes when you can keep that hard earned money in your pocket.

The second reason is that if by chance there is an accident on a job-site that causes injury or damage that can be attributed to your negligence the insurance company will hold you personally responsible. You can be personally sued for the total damages which could cost you everything that you own.? If you are incorporated, your corporation places you a step further away from being liable on a personal level. We also recommend that you carry liability insurance so your corporation does not suffer total loss if an accident or injury should occur.

At ASR we can assist you in this process to make it easy with professional advice and service.

Allied Self-Employed Resources Inc. Calgary, Alberta

Your Own Business, Your Future Success, Your One Resource

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

You might think that it is less expensive to do your bookwork at the end of the year and save money. Here are four reasons why that is not true.

1. Your accountant does not like a pile of papers given to him or her at the year end. They are busy and will have to block out a substantial amount of time just for your work. Guess who pays a premium for this, you the client. Have your accounting performed on a regular quarterly basis. This will make it easier for your accountant and save you money.
2. At the end of the year invoices and important papers can be lost and that means lost income for you.
3. The worst problem is your memory. We all forget what we did last week never mind questions on money transfers and amounts going in and out of your accounts last year. This can add up to lost opportunity to save on your taxes.
4. Have you’re accounting bill spread out over the entire year instead of one big over inflated bill at the end of the year is easier on your business to handle. You will have up to date information on your business which will save you money in planning for the future.

Not only will you’re accounting bill be the same or less but you will have access to information on your businesses operations that are vital for your success.

Allied Self-Employed Resources Inc. Calgary, Alberta

Your Own Business, Your Future Success, Your One Resource

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

As a business owner you will have to submit to Revenue Canada Agency your year end tax return. This can be an extensive cost , and you still have to worry about your personal tax return!

ASR’s services include the cost of preparing and filing both your corporate and personal tax return. An added bonus of ASR’s services is the preparation and filing of your spouses personal tax return.

There are many added benefits to ASR membership. For example, when you require financing for that new truck or home, the quarterly statements that ASR’s certified accountants have prepared will aid in your credentials as an incorporated business owner as well as having saved you time and money.

ASR’s membership fees are approximately the same cost as having an accountant prepare your corporate tax return. So basically your bookkeeping, quarterly statements, third quarter review, personal tax return, spouse’s personal tax return, the opportunity to take advantage of preferred Insurance rates, and numerous other benefits of ASR Membership are a yearly bonus to you and your business.

Allied Self-Employed Resources Inc. Calgary, Alberta

Your Own Business, Your Future Success, Your One Resource

Revenue Canada will eventually find you. In the past we have had people come to us with the fear of jail time and expensive penalties for not reporting to the government their income. Chances are that your situation may not be as bad as you fear and if you take care of it before Revenue Canada finds you they will be much more lenient, and you will be able to sleep better too.

Allied Self-Employed Resources Inc. Calgary, Alberta

Your Own Business, Your Future Success, Your One Resource

ASR can show you how to correctly and legally pay lower Workmen’s Compensation Board premiums by introducing an additional benefit policy. This added policy is individually structured and properly suited for your business related needs, as well as more reliable due to the coverage being 24/7 and not limited to only the job site. ASR’s intention is to have you adequately covered for disability while still being compliant with Workmen’s Compensation Board regulations.

Allied Self-Employed Resources Inc. Calgary, Alberta

Your Own Business, Your Future Success, Your One Resource