READ: 7 things to remember when doing this year’s taxes Whether you’re a sole proprietor or incorporated, GST/HST sales tax applies if you choose to register voluntarily or if you have more than $30,000 of revenue in a year (technically in four consecutive calendar quarters, whether they all fall in the same calendar year or not). The eligible deductions are more or less the same for the purposes of most self-employed people. It’s a common misconception that incorporation somehow gives you access to magical tax deductions that a sole proprietorship does not. The net income – revenue less expenses – gets taxed accordingly. There’s a section on your personal tax return to report self-employment income and deduct eligible expenses. This would be considered a sole proprietorship, or, if you had partners, a partnership.Īsk a Planner: Leave your question for Jason Heath » I did it myself when I was young with a hobby business – and regretted it.įrom a tax perspective, an unincorporated business that you run generates personal income that goes on your personal tax return. I find far too many people immediately set up a corporation when they go into business and regret it afterwards. My question is: my wife recently started to work for herself designing kitchens and we were wondering tax-wise if it is better to claim this as self-employed income or to open a small business?Īlso, what are the CPP rules on self-employed?Ī: I think it’s good, Sandie, that you and your wife are considering whether to incorporate rather than just plowing ahead. I am 55 and she is 52 and we are debt free. Q: My wife and I are looking to retire in about five years or so.
0 kommentar(er)
