Starting business part time and tax deductions

[life2010]

Hi
I am jut curious about canada taxes. If you do par time or work from home business, do you get deductions. Do u end up reducing your personal taxes based on deductions?

For example in usa if you do part time business, the govt gives you so many deductions which in the end reduces your taxes in most of the instances

Can any one throw some light on canadian tax system for part time businesses

 

[NetMecca]

Taxes in Canada are notably a very complex issue. I have had this discussion with my accountant a while ago, and he told me that you can deduct a percentage of your expenses to your home (based on the physical space used) So if you have a study used for business and that is 10% of the size of your property, you can deduct 10% of heating, hydro, water etc.

The second prerequisite is that the deductions have to be relatable to the income under which you are claiming the benefit. If your full time employer does not require you to work from home, the income earned there is not relatable.

The best solution is to spend a little time with an accountant, and make sure how you cna structure your taxes to meet your specific needs.

Cheers!!..