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Posts Tagged ‘home business tax deductions canada’

Question: How much would I pay in taxes in Quebec, Canada?

I currently live in the US and am considering a move to Montreal. I operate a home business, and all of my income is coming from US sources, but I have been told that Canada taxes all worldwide income. Then it seems that the US would give me some sort of tax credit for what I paid to Canada.

I expect to make $25,000 before deductions. Does Canada have a similar system as far as self-employment taxes? Do they have a self-employment tax?

What abouts would I have to pay for tax, including federal and provincial?

Answer: If you move to Canada and operate a home business, that is CANADIAN-source income, regardless of where your client resides.

Only if you are a US citizen would you continue to file and pay US taxes, and receive a Foreign Tax Credit on your CANADIAN return.

Yes, if you are a sole-proprietorship, you must pay CPP premiums yourself. This is equivalent to SE tax.

For estimates use the tax calculator here:

http://www.taxtips.ca/calculators/taxcalculator.htm

Much, much more info here:

http://www.cra-arc.gc.ca/tx/bsnss/tpcs/slprtnr/menu-eng.html

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Question: Home Based Business Tax Deductions?

I have a home based business. Let’s say that I purchase a computer that is needed for the business. I know that this is considered a business expense and is tax deductible. Do I need a certain amount before they can be taken off taxes? For instance I know you have to have a certain amount of medical expenses before you can deduct them. Is it the same for business expenses?

Answer: Contact the IRS local office or website for specific help.
If the computer is used for a home business,you cannot have any games installed (even if you don't play them).
You might not be able to deduct the purchase outright,but depreciate the value over a few years.
You might want to invest in a "Home and Business" financial software to keep personal and business records separate.

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