When it comes to tax articles and blog posts, the focus is often on typical expenses and common tax implications. But what about the lesser-known deductions and accounting tips? Don’t they deserve some tax love too? In this post, we’ve compiled a list of lesser-known tax deductions items that businesses might find useful. From GST/HST considerations to unique expense deductions, let’s explore these hidden gems that could help you optimize your tax strategy.
1. GST/HST on Parking Receipts (Not Parking Tickets) Discover the hidden GST/HST component in parking expenses and learn how to claim Input Tax Credits (ITCs) to improve cash flow.
2. GST/HST on Taxi or Ride-Sharing Fares (Uber, Lyft, etc.) Uncover the sales tax included in taxi fares and ride-sharing services, and find out how to calculate and claim ITCs on these expenses.
3. GST/HST on Mileage Reimbursements Explore how businesses can claim ITCs based on mileage reimbursements for employees traveling by vehicle.
4. GST/HST on Reimbursements/Re-Billable Expenses Navigate the complexities of re-billing expenses with sales tax implications and learn when to charge GST/HST to Canadian entities versus non-Canadian entities.
5. Day-to-Day Expenses That Are Not GST/HST Taxable Identify specific expenses, such as interest charges, bank and credit card transaction fees, and insurance fees, which are not subject to GST/HST.
6. Charging Sales Tax from Canadian Entities to Non-Canadian Entities Understand the rules for charging GST/HST to clients outside of Canada and learn how to claim ITCs for sales tax applicable expenses in Canada.
7. Company Social Event Expenses Discover the full deduction eligibility for company social events and learn about the limit on fully deductible events.
8. Import Duties Get insights into the implications of import duties on tangible goods from outside of Canada and understand how to claim ITCs on the sales tax paid for these imports.
9. Previously Unclaimed ITCs on Current Sales Tax Filings Learn about the 4-year window to claim unclaimed ITCs and explore opportunities to increase cash flow by including missed ITCs on current tax filings.
Conclusion:
In this post, we’ve shed light on lesser-known tax deductions and accounting tips that businesses can benefit from. By understanding these hidden gems, you can optimize your tax strategy, improve cash flow, and ensure compliance with sales tax regulations. Remember that the information provided is general in nature and should not be considered as personalized advice. Always consult with tax experts to align your tax strategy with your unique business objectives and financial circumstances.
