As the year is coming to a close, it is time to do a year-end review, if you have not yet done so, and start planning for 2019.
The joy of being your own boss comes with extra responsibilities.
Extra important items to consider for entrepreneurs & investors:
- Bookkeeping: December 31st means statements, invoices, receipts, etc.
May I suggest that you put aside some time during the holiday and get a head start with your paperwork gathering, if you have not yet started during the year. This will make your tax time much less stressful.
I would like to remind you that we offer bookkeeping & tax preparation services. Please contact me directly to schedule an appointment. - Depreciable Asset Purchases: the CRA has a first-year rule on most of depreciable properties. That means you can’t deduct the full cost of depreciable property for the year in which you acquired the property. You can reduce your “loss” portion by planning your purchases near the end of your fiscal year.
- Legal, Accounting and other Professional Fees: in most cases, these fees are tax deductible. Make sure your invoices are dated by or before December 31st 2018, if you wish to claim these fees for the 2018 tax year. Same goes for other deductible expenses.
- Income: if you wish to defer your income to 2019 tax year, consider dating and sending out your invoices on or after January 1st, 2019.
- Year-end Tax Loss/Gain: December 27th, 2018 is the last trade date for the 2018 tax year. Remember that loss can carry back 3 years, or carry forward indefinitely. Make sure to watch out for the superficial-loss rule. Consider utilizing this rule to shift unrealized losses between spouses.
Click here to view more year-end tax planning for all taxpayers.
I trust that you find these highlights useful.
If you need a hand, or simply would like to discuss these and/or other tax planning strategies and how they affect your financial plan, contact me directly.
Remember to always “Dream It. Plan It. Live It.”
I am here to help you on your journey. Reach out if I can be of any assistance.
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