Resource: Truth about Business Tax Deductions

Filed in archive Taxes on January 15, 2007

I do not hear it anymore but when I first started in business my friends used to say, "You pay for lunch, it doesn't cost you anything because you get to "write it off."

I would then explain to them why they were mistaken and exactly how business tax deductions work. There are many myths about business tax deductions and to learn more all you need to do is drop by and visit Small Business Canada.

People think that running a business is a great tax break because you can write off all your expenses. But that's not necessarily so. And then there's the whole business of collecting and remitting taxes, that people who don't run businesses don't have to deal with. When it comes to business taxes, ignorance is definitely not bliss; if you're not aware of the ins and outs of business taxes, and don't comply fully with the business tax rules, you can end up facing costly penalties. Via 5 Common Business Tax Myths

Susan does her typical workmanlike job and provides insights that many entrepreneurs miss. For example, you might be "in business" and not know it, you think you do not have to collect GST/HST, writing off all home expenses, write off entertainment expenses, and writing off all equipment you buy for your business. For the details drop in to learn more about these 5 Common Business Tax Myths.