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| *Ostroff, Fair and Company>>>Canada Taxes |
Would like to know how can i not pay so much taxes ? |
for 2005 i had to pay 35000 ....... i am based in Canada make less money lol Does your employer offer any tax-deferment options, like a Canadian version of a 401(K)? Unless you transfer it to the Caymans you will eventually need to pay taxes on it. Hopefully, you are contributing the max to an IRA, 401K, everything you can as that money is put into the accounts and what's left over from your check is taxed. Another thing you can do is some employers have flex accounts where you can have monies pulled out of your check to be used for expenses like dental, medical, child care, medication expenses, this money is also tax exempt. If you work in the Middle East, your money is tax deferred the entire time you are there. You also need tax deductions, get with a good CPA so they can show you the way. Good Luck! Don't know about the tax laws in Canada, but a few major deductions that Americans use are the interest deduction on a primary home, rental property deductions and business deductions so long as an attempt has been made to make a profit. To answer your question, I would think buying a home or investment property could soften the blow of the Canadian taxes. You could also start a small business. Hope this helps! dont file to the IRS and they wont know but if you dont in the U.S. then you better hope that you dont get caught. Unfortunately, other than contributing more to your RRSP (make sure that you contribute your maximum, including the cumulative unused previous contributions), there is not too much you can legally do if your income is employment-based. If you have children, you can also consider RESP's. Becoming self-employed, and setting up a corporation which will pay you primarily in dividends will save a little bit in taxes, but is probably not worth the effort. If you are married and your spouse does not work, this is a good route to try some income splitting by paying your spouse for doing work for the corporation. A warning on the splitting front - the work has to be actually performed, and it must be reasonable for the amount of work done. Alternatively, you could income split using dividends, which you can do without having to worry about too many tax regulations regarding the income splitting. If your income is investment-based, then try to concentrate only on capital gains and Canadian qualified dividends, both of which have lower tax rates. Talk to an accountant - book about an hour of his time, and discuss your alternatives, and pay him for his time. If you find out that you have worthwhile options, you should save more money than you paid to find it out. If you find out that you have no options, then the piece of mind is probably worth the expense. While nobody enjoys paying large sums of income tax, think of it this way - the more money that you earn, the more you pay in taxes. The fact that you pay a lot of taxes means that you are earning a fair chunk of cash. Am paying over $90,000 per year in income taxes :-( |
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