Smart Tax Tips for Canadians Part 2

Are you looking for more smart tax tips? As promised, we’re providing you with additional tax tips every Canadian should know.

One tax break overlooked by many Canadians is medical expenses. Most people assume that their medical expenses won’t add up enough to result in a large tax break, but upon closer inspection this isn’t always true. Your receipts must total $1,844 or three percent of your net income (whichever is the lesser total). These receipts can also include any healthcare premiums you pay at work.

Are you claiming all of your childcare expenses on your taxes? The claim must be two-thirds of your earned income or the total of individual maximums for each child ($7,000 for each child under the age of 7 or $4,000 for children ages 7 to 16). Even if you are just paying a friend or neighbour to watch your children, ask for a receipt so you can claim it towards childcare expenses. If your household income is less than $35,595, you may be eligible for the Child Tax Benefit. Do your children play sports? The Children’s Fitness Tax Credit can be used towards sports program fees.

If you file taxes separately from your spouse, combine your charity donations onto one tax return. You’ll receive a 15.5% tax credit for the first $200 in donations and 29% for anything over that. You will also save money on taxes by having the lower-income spouse act as the investor of the family. The return on investments will be taxed at a lower rate this way.

Check out full article, “20 Smart Tax Tips for Canadians”

About Kustom Design

Kustom Design is a group of interconnected companies, each company striving for the same goal: to provide excellent Accounting and Financial products and services to help clients SAVE on taxes, properly manage their finances and ultimately, achieve Financial Freedom and Lasting Wealth. The Kustom Design Group offers a complete line of products and services in key areas of accounting, finance and tax; from accounting, consulting and strategic planning to financial and tax education.

Contact Us: 403.219.0602 | e-mail

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Kustom Design Group Announces Business Boot Camp

Calgary, Alberta (August 27, 2012) – Michael Lepitre, CEO, Kustom Design Group of Companies, is pleased to announce the launch of Kustom Design’s groundbreaking Business Boot Camp. The seven-week course will be held on Monday evenings beginning October 1, 2012.

“After the success of our Financial Boot Camps, we decided to launch a boot camp geared towards businesses of all sizes,” stated Lepitre. “Our mission with this boot camp is to educate business owners on business tax tips, marketing, business management, and bookkeeping among several other topics.”

Held at the Kustom Design Office, the Business Boot Camp will take place from 6:00p.m. to 9:00p.m. for seven Mondays beginning October 1, 2012 and ending November 12, 2012. The Business Boot Camp is a great way for local business owners to improve their business and meet other Calgary business owners.

“Kustom Design is committed to helping business owners make the most of their revenue,” concluded Lepitre. “Attending the Business Boot Camp will be a great investment for business owners looking to grow their business and increase profits.”

Spaces at the Business Boot Camp are filling fast! Interested business owners can register for the Kustom Design Financial Boot Camp on our website. For answers regarding the boot camp, please contact Stacey Lepitre at 403-219-0602 or via email.

About Kustom Design

Kustom Design is a group of interconnected companies, each company striving for the same goal: to provide excellent Accounting and Financial products and services to help clients SAVE on taxes, properly manage their finances and ultimately, achieve Financial Freedom and Lasting Wealth. The Kustom Design Group offers a complete line of products and services in key areas of accounting, finance and tax; from accounting, consulting and strategic planning to financial and tax education.

Contact Us: Kustom Design | (403)219.0602 | www.kustomdesign.ca

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Smart Tax Tips For Canadians Part 1

We came across a great article the other day, and we’d like to share it with you! The article had some good tax tips that might help you save money on your next tax return.

The first smart tax tip for Canadians is to spend less. Sounds obvious, right? However, reducing the amount of GST and provincial taxes is one of the most overlooked factors when trying to reduce your overall tax bill. To start reducing your purchases, you first need to see what areas you are spending the most in. For one month, keep track of your spending in different categories such as groceries and house goods, dining, entertainment, monthly recurring bills, and non-essential items (new clothes, video games, etc.). If you find you are spending a large sum in any category other than your monthly recurring bills, this would be the first place to start cutting back.

Another interesting piece of advice is to avoid getting a large tax refund. That may sound strange, but the logic used in the article says that if you are getting large tax refunds, you might be paying too many taxes up front, and you’re essentially giving the government an interest-free loan. The money from your tax return would be better off garnering interest in your own bank account. You can ask your employer for a T1213 Form to reduce the amount of taxes taken off your paycheque each month. Use this extra money from your paycheque to pay on your mortgage or open a high-interest savings account.

The article also suggests that you should invest in your children’s education. You don’t receive a tax deduction for opening a RESP (registered education savings plan). However, the earnings will grow tax-free for up to 25 years!

To read the full article, “20 Smart Tax Tips for Canadians”, click here. 

Be sure to check our blog again for many more smart tax tips. At Kustom Design, our mission is to help Canadians save money on their taxes and gain financial freedom!

About Kustom Design

Kustom Design is a group of interconnected companies, each company striving for the same goal: to provide excellent Accounting and Financial products and services to help clients SAVE on taxes, properly manage their finances and ultimately, achieve Financial Freedom and Lasting Wealth. The Kustom Design Group offers a complete line of products and services in key areas of accounting, finance and tax; from accounting, consulting and strategic planning to financial and tax education.

Kustom Design | 403.219.0602 | Calgary, Alberta | www.kustomdesign.ca

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Home Business Tax Deductions That Are Often Overlooked

Did you know about one out of four Canadian households operate a part-time or full-time business out of their home? Unfortunately, a large percentage of these business savvy homeowners are unaware of all the tax deductions they could be claiming to save money.

One of the biggest tax deductions missed by homeowners is business-related car usage. If you use your car for business 50% of the time, you can claim 50% of your car expenses on your tax return. If you get separate car insurance to cover your business usage, this additional premium is 100% deductible. There are many other expenses related to your business that are 100% tax deductible. To learn more about many small business tax deductions, please read the article here. Be sure to check out our business startup guide for more tips about home office deductions and how to calculate them!

At Kustom Design, we’re dedicated to helping small business owners with all of their tax and financial needs. We want to help you save as much money as possible, so you can invest that money in your business! If you have questions about small business tax deductions make sure to contact a member of the Kustom Design team today!

About Kustom Design

Kustom Design is a group of interconnected companies, each company striving for the same goal: to provide excellent Accounting and Financial products and services to help clients SAVE on taxes, properly manage their finances and ultimately, achieve Financial Freedom and Lasting Wealth. The Kustom Design Group offers a complete line of products and services in key areas of accounting, finance and tax; from accounting, consulting and strategic planning to financial and tax education.

Kustom Design | 403.219.0602 | Calgary, Alberta | www.kustomdesign.ca

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Tax Tips for Small Business

If you own a small business, you know that when it comes to filing taxes, it’s important to save every dollar possible. Fortunately, we found an article that has some great tax tips for small business owners. Kustom Design is dedicated to helping small businesses with all of their financial needs, as well as offering financial tips all year around to help businesses – and you – save money.

There are many legal ways for business owners to save money on their taxes. Some of the ways discussed in this article include splitting incomes and corporate shares of the company between family members. Another way you can save money on your taxes is to put your RRSP into your spouse’s name. This will only help if they have less taxable income than you do. Setting up a family trust and paying your family members to work at your business can also reduce the taxes you have to pay. For further explanations of these tips, and to learn more about saving money on your next tax return, click here to read the article.

Don’t forget that the Kustom Design team is always here to answer your tax related questions. Contact us today to book your consultation!

About Kustom Design

Kustom Design is a group of interconnected companies, each company striving for the same goal: to provide excellent Accounting and Financial products and services to help clients SAVE on taxes, properly manage their finances and ultimately, achieve Financial Freedom and Lasting Wealth. The Kustom Design Group offers a complete line of products and services in key areas of accounting, finance and tax; from accounting, consulting and strategic planning to financial and tax education.

Kustom Design | 403.219.0602 | Calgary, Alberta | www.kustomdesign.ca

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