The 8 Best Tax Write Offs for Small Businesses in Canada

[@georgehachey1881]

I've been wondering how to organise my expenses for taxes purposes, this video helped me 100% Thank you very much Allan!

[@reyfelix6249]

You prolly dont give a damn but does anybody know a method to log back into an Instagram account..? I was stupid lost my account password. I would love any help you can give me.

[@jazzy0073]

Very impressive. after watching many videos this guy helped me to learn alot. great sir. i have opened my construction company in quebec so these videos would help me alot to put genuine things for tax. thank you.

[@grgameready7363]

Thanks. That was straightforward and succinct. Well done

[@landseverywhere2155]

guy...may the lord bless you, i was so stressed being first year in business...this was a great help!

[@AllanMadanCA]

Thank you! Best of luck in your business.

[@jonathansimmonds3758]

Clear and simple - Great for my business English class who are all small business owners. Good reminder to keep a record of mileage etc.

[@AllanMadanCA]

Thank you for the positive feedback. I appreciate it.

[@jeffreylondongolf3448]

Woo keep this coming with updates and reminders and repeat videos! Great stuff!! Recycle content, trust me there is no issue in that! Thanks!

[@ProjectLena100]

Thanks Alan for your video I get answers on my questions about business expanses.

[@igorsavchuk8547]

Very well explained, thanks!

[@jillnault6058]

thank you for putting out this video! Such great information for a new business looking to maximize their writeoffs!

[@AllanMadanCA]

Hi Jill, thank you for your positive feedback.

[@mollymacleod1923]

This was a stellar video! Thank you :D

[@rolinmcquade2800]

This was so informative and simple. Heading to your website now!

[@mariao8921]

This was really informative and helpful! Thank you Allan!!

[@ryanorlandaofficial]

Hi Allan how are you great video. I have a question about the vehicle. I have a car and almost my financing this year. Can i include my remaining payments for my car and other expenses? As you've said it should not be a passenger car. Means i can't deduct anything for my taxable income at the end of the year?

[@Ares_x0ne]

Hi Allen thank you for the great information. Do I need to have a HST number to take advantage of these?

[@daviddow929]

Allan, I appreciate your videos and you have been very helpful. I had a question and I wasn’t sure if you actively respond on here or not. Is there a revenue threshold that I need to meet to qualify for these deductions/write offs? If I am a new business owner trying to get started can I utilize these right away or do I need proof of revenue and income before I can use the deductions?

[@hany.gad1]

Thanks a lot Allan for this video and all the videos, you are a true help! I have a question regarding the business vehicle lease; I am paying $900 a month for my truck lease, so would I be able to deduct 10,800 from my income for the year (say it is 80,800) so my taxable income becomes 70,000 instead?

[@AllanMadanCA]

Hi Hany, if the truck is used to haul goods, then it's not treated as a passenger vehicle, and the lease amount is fully deductible. Otherwise, the truck will be treated as a passenger vehicle, and the lease deduction is limited to $800 per month.

[@hany.gad1]

Thanks Allan, I do transport tools and kits on my truck as I am an oilfield consultant, so yes I think it wouldn't be treated as a passenger vehicle.

[@AllanMadanCA]

It won't be treated as a passenger vehicle in your case.

[@GreatBoneStructure]

Great clarity. Thanks.

[@cmoore2574]

Great video brother! thank you!

[@Wutwut1n1]

Thank you very much for all this information, greatly appreciated 👍

[@harlemespanol]

Wow! Great video. I was wondering if you can write off unsold inventory? For example, I purchase 100 hoodies and I only sell 50 hoodies for the year, can I write of the remaining 50 hoodies?

[@dreambabyxoxo]

Thank you so much!! This is extremely helpful:)

[@Blessed_365]

amazing, informative!

[@SpencerStanley]

Great video Allan, thanks!

[@daniellee3733]

Awesome. thank you so much Mr. Allan!

[@LUYANWENRose]

what do you mean by "Make capital purchases right before the year-end so you can take maximum advantage of depreciation deductions on purchase assets" ? please help

[@AllanMadanCA]

Hi Lu Rose, when you purchase a company asset during the year, you can claim 6 month's of depreciation expense, regardless of when you purchase it in the year. This is known as the 'half-year rule' for depreciation. To maximize your after-tax dollars, consider purchasing a company asset at the end of the year. By doing so, you can claim 6 months worth of depreciation expense, even though you owned the company asset for a very short-time period.

[@JuanMorales-wq2pv]

You are good Allan!

[@AllanMadanCA]

Thank you for the positive feedback.

[@Teabone3]

This was very helpful. Thank you Allan.

[@amankmittal]

Hi Allan, Thank you for putting out this video, really helpful. I have a question - what If I subscribed annually for an application (Nov 15th) just before incorporating my business (Dec 15th), can I transfer the remaining subscription cost (11 months) to the business?

[@biancabertocchi548]

wow your videos are so useful!!

[@AllanMadanCA]

Hi Bianca, thank you for the positive feedback.

[@josejaimes5387]

Thank you sr. very helpful info.

[@AllanMadanCA]

Thank you for the positive feedback.

[@GoWandererGo]

Well done. Thank you.

[@perezcarlos62]

Allan, very good explanation. In case of cars, the car registration have to indicate that the Corporation is the owner or the lessee? or it is not necesary/

[@AllanMadanCA]

Hi Carlos, yes, the car registration / lease agreement should be in the name of the corporation.

[@andrewwilliams5500]

Hi allan amazing as always. Content simply amazing. Please help me on 2021 leases and what can I claim as a small biz inc. Thanks

[@ikkeveldigvicky]

Hi Allan, thank you for a great channel! Question: many small businesses advertise online (google ads, Facebook targeted ads etc.) Is this tax deductible? Thank you very much.

[@AllanMadanCA]

Yes, these are tax deductible.

[@sneakertri]

Amazing content, thank you

[@vegandelightsbylisa-ann1242]

Hi Allan, Thank you for sharing. Will this information apply to a small business that has not yet reached the $30,000 mark?

[@AllanMadanCA]

Hi Lisa, the same write-offs apply even if your sales are below $30,000. However, you are not required to register for GST/HST if your sales are below $30,000.

[@johnwilliams9807]

Allan Madan , but do I still have to register for business number

[@ankurbansal21]

you mentioned life insurance can be claimed as business expense ,in that case what about death benefit amount ,will not be taxable?

[@zackeryzackery9381]

Good video, practical

[@mayatransport5506]

Thank you for the Video.

[@AllanMadanCA]

You're welcome.

[@Rizzocartel]

Do I have to make payments through my business account to get write offs or I can use my personal account

[@mohammadtjaan3686]

Hey Allan, love the content. I have a question in regards to tax write-offs. when leasing to own equipment for my business, is the whole monthly payment a tax write off?

[@dylanbernier6010]

I believe a lease is 100% an expense. Meaning that because it's not an asset, it doesnt depreciate. So i think you can get the whole monthly payment. I could be wrong and this is not financial advice.

[@montmib]

As a self employed (I do tutoring), can I file more expenses than profit ? For example, If I make 2000$/year profit tutoring and I declare 4000$ for expenditures for many years in a row. Thank you.

[@YMMPodcast]

this is awesome!

[@aidanmorgan3280]

Thank you for this,✊🏽

[@MarzMindset]

Great info, thank you!

[@galinakh1]

Thank you for the video! I have a question about a mortgage interest. Is it really deductible? I know it is in States, but not in Canada.

[@AllanMadanCA]

Hi Galina, Mortgage interest is deductible if the borrowed funds are used to purchase an income producing investment. In addition, if you rent a portion of your home to your company to use as office space, you can deduction a portion of the mortgage interest you pay.

[@emandagauthier9914]

Hi there, Can you write off finance payments for a vehicle, or is it only lease payments?

[@AllanMadanCA]

Hi Emanda, lease payments are tax deductible. If you financed the purchase amount of the vehicle, then you can write off the interest paid. In addition, for a financed vehicle you can also claim depreciation at an annual rate of 30%.

[@navarrosanchez8830]

Fantastic. I'll recommend you. Cheers

[@ChescoYT]

*Uploader is amazing, ty from a young Canadian!* *If i had parents that gave a fucking shit about me and taught me things, i would have been a millionaire by now.*

[@anaselfadil4113]

Big like,you're awesome

[@daneshm]

good man , handy tips

[@kathyho3985]

Can you kindly provide a more challenging tutorial on how to allocate the small business deduction between two associated companies?

[@AllanMadanCA]

Sure, I will do my best to prepare one.

[@judithsarazin7110]

Alan, If my incorporated small business is paying a Salary to me, the main employee, can I purchase a Health & Dental Benefit Plan for me and my dependent spouse and claim this monthly charge to the business?

[@solsisterkendra7832]

great video. thank you.

[@vladtheimpaler3625]

I just have one question. How do you define a small business? What if my company only has one person but I pay more taxes than company with more employees?

[@monishpawar3381]

Why have you stopped making videos? Nice content!

[@r_mon6178]

Hi Allan, can I purchase a cottage home and a primary residence in 2 different cities? And if I sell the primary residence can I avoid paying tax on the capital gains for the primary residence? And what order I should purchase the homes in (ie. first buy the cottage or the primary residence).

[@AllanMadanCA]

You can only claim the principal residence exemption on one property in a year. In other words, you cannot claim to have to primary residences in the same year.

[@r_mon6178]

I don't plan on selling 2 homes as my primary residence. Can I have a cottage home and a primary residence in Toronto at the same time?

[@AllanMadanCA]

Yes, you can have both. But only 1 can be designated as your principal residence at a time.

[@r_mon6178]

ok great. BTW your videos are amazing. I've learned so much. Im just throwing this out there, but maybe making a video about this may help. Many of my friends had the same question and concerns regarding owning 2 properties (cottage & house down south) and wanting to sell their house down south (primary residence) and not wanting to pay tax on the capital gains since its their primary residence. Thanks again,

[@AllanMadanCA]

You're more than welcome. I will try my best to produce a video on the cottage + home scenario.

[@Marcoosianism]

If the capital acquisitions are in Class 12, am I correct that you the half-year rule does not apply and you can write off 100% of the value in that first year? Subscribed.

[@AllanMadanCA]

The half year rule does not apply to purchases of Class 12 assets, except for certain items like software.

[@Marcoosianism]

Thanks Allan.

[@carlstereway4327]

Can u make a video specifically on advertising? I created my own advertising platform and j would like more information, please and thank you! Great video, by the way, are you from Toronto?

[@AllanMadanCA]

Thank you for the positive feedback. I will do my best to create a video on advertising.

[@ikkeveldigvicky]

Allan Madan Yes please!

[@irenehogan528]

Good info

[@acouplepainters5326]

Hi Allan, thank you for your video. I have a question regarding write-offs for advertising. If I pay for a Google Ad, but geo-target it to Canada, is that eligible to be written off? Thanks.

[@AllanMadanCA]

Yes, you can write off the expense.

[@ryanorlandaofficial]

@@AllanMadanCA But what if the company that i paid online for my business is outside canada like FIVERR?

[@brianharcott2093]

How exactly does one calculate their "mortgage interest only" per monthly payment? For example I have a 25 yr mortgage of $290K at 3.04% and my monthly payments are $1370.

[@AllanMadanCA]

Your bank should provide you with a year-end statement showing the total interest paid and total principal paid. Use the figures from this statement.

[@SommyLogic]

thank you !

[@shabanahasan678]

Very informative and really helpful. However, please remove back ground music. Hard to concentrate.

[@r_mon6178]

so Allen, just to clarify, if i purchase a 160,000 car, I can only claim $24,000 (15%) in the first year and a maximum of $6,000 (4%) the next year and thats it. I would not be able to claim anything else, correct?

[@AllanMadanCA]

If you purchase a vehicle for $160,000, then the amount allowable for CCA is limited to $30,000 + taxes. For example, assume that you purchase a car for $30,000 (ignore taxes for simplicity). In year 1, you can claim 15% or $4,500 of CCA. In year 2, you can claim 30% of the balance remaining for depreciation: 30% x (30,000 - $4,500) = $7,650 of CCA.

[@r_mon6178]

So probably better to lease the ? I know the lease limit is $800 + tax, is that for all the cars under the corporation or can I have 2 cars under my corporation for $800 per car? And if so, can I purchase the cars within the same year or is there a limit of cars you can lease per year? Thanks again, Your videos are great

[@AllanMadanCA]

The lease limit of $800 is for each car / per car. You can lease or purchase within the same year.

[@KDD8]

Thanks Pal!

[@mr.coolman3376]

Hello Allan, I am interested in investing in the stock market in the USA and Canada. How will I be taxed on my dividend income from both countries?

[@AllanMadanCA]

I'm assuming that you are tax resident of Canada. If this is the case, then taxes of 15% will be deducted form dividends paid by US companies to you. Any capital gains on the sale of US marketable securities will only be taxable to you in Canada.

[@MrAA-oc3ym]

so if i buy or own a $60,000 car would i still get a 30% write off?

[@AllanMadanCA]

The capital cost allowance (i.e. depreciation) rate is 30% per year for vehicles. In the year of purchase, only 15% can be claimed. Note: The maximum cost allowable for CCA is $30,000. The purchase price in excess of $30,000 cannot be written-off.

[@Marcoosianism]

If he bought his car say 5 years ago, would have only be able to write off 30% of the current "book value" of the car? ... and if so, does the half-year rule of 15% apply since it's the first year he's claiming it?

[@jaytoronto-mc6qu]

You set up a meeting with me but did not show up. You asked for my number but never called. I called your office but no one picks the phone????

[@srinath88j]

Arigato Gosaimasu!!!

[@mikekollinger6845]

Is this information up to date

[@ml3924]

U can’t claim home office expense anymore

[@harolddavis5864]

Work closely with our local agents, many of whom live in your neighborhood. Let us get to know you and your needs. www.ccvinsurance.com/locations/brampton/ #autoinsurancebrampton #carinsurancebrampton #insurancebrampton #homeinsurancebrampton

[@northernwrx]

Should I incorporate if I only have one rental property???

[@AllanMadanCA]

Hi Jamie, no, it doesn't make sense to incorporate a company for one rental property. Canadian corporations pay a high rate of tax on rental income (net of expenses) - approximately 50%.

[@northernwrx]

Allan Madan I think rental properties are a great asset to my portfolio however I don't know the tax side enough. Your videos are great I have been watching a lot of them. I think this is the year I hire a tax person.

[@Sunlitbat]

I was just watching this and I spilt candle wax all over me lol

[@johnwinnerdz1]

bluffing for a commercial property sale, on the up sell . lol

[@dvictor6885]

we just really should not have to pay tax ,at the amount that are scammer gov, think we should give them. free man on the land

[@aidanmorgan3280]

Complaining about how it is won't change a thing, the successful adapt

[@icimatch9128]

U should remove old videos.. out dated. ?

[@jesterc.6763]

82k views? No wonder why people are poor. This should be taught in churches.