Frequently Asked Questions About Tax Credits
When it comes to accounting and tax credits, there are a ton of questions clients have but often find answers difficult to come by. Ramsey & Mahajan Accountants & Consultants wants to arm you with the most accurate information available to help you save on your taxes. To help you out, we’ve answered some of the most frequently asked questions about taxation and investments.
1. Should I pick a salary or dividends?
There are pros and cons to either option.
If you want a salary from your company, you can contribute to RRSP’s. If you want dividends, you can possibly pay lower taxes based on the number of dividends you withdrew. It would most likely be in your best interest to take a bit of both.
2. Should I buy or lease a vehicle?
It really doesn't matter because you will have a similar tax deduction every year irrespective of the choice you make.
3. How much RRSP do I need to purchase to not owe taxes?
It is tough for us to provide an individual answer over the phone or through an email. We would need to know your income, whether you contribute to any pensions and how much tax is already being deducted. If you need a quick answer, you can look up an RRSP contribution calculator to determine how much of a tax credit you will get based on your income and the amount you want to contribute.
If you have any further questions regarding taxation, get in touch with the experts at Ramsey & Mahajan Accountants & Consultants. As the best accounting firm in Calgary, we provide a range of services from business start-up, bookkeeping, financial statements, payroll services and many others. We also assist with personal tax returns and can also help with real estate planning and trust tax returns. To learn more about how we can help you, please click here or contact us by clicking here.