Top 3 Money Saving Tax Tips For Actors
Are you earning money in Canada as an actor? If so, you are likely being paid on a self-employed basis, in which case you are required to fill in a self-employed tax return.
While this requires you to pay tax on your earnings, there are a number of money saving tax tips to help reduce your tax bill, along with reducing the chances of being audited by CRA (Canada Revenue Agency)
Tip 1: Work-space-in-the-home expenses
One of the most important and useful money saying tax tips is claiming on work space in the home, as part of your expenses as an actor.
While this isn’t applicable for everyone, depending on your circumstances, it potentially allows you to claim back part of your living expenses, such as rent, electricity, insurance and a number of other costs.
Ensuring you cover all of your work space expenses is crucial in getting the lowest tax bill possible, or you could miss out on potentially hundreds or thousands in unclaimed expenses.
Tip 2: Motor vehicle expenses
As an actor, you are likely to get around the place, figuratively. Therefore, ensuring you are claiming back your permitted motor vehicle expenses can help massively reduce your tax bill.
You can claim back on a whole host of motor vehicle expenses, such as insurance, repairs and even fuel costs that were used for work-related purposes. A drivers log is an essential item to keep maintained for this expense claim, so speak to us and we can help advise how to create and maintain one, as this is a regular area where CRA will audit your return.
Tip 3: Capital cost allowance expenses
One of the easily missed expenses, though hugely important for reducing your tax bill, is capital cost allowance, particularly carrying over prior years assets to the current year’s tax return.
Assets that were purchased for work-related reasons can be claimed back on your tax return for the entire duration of the asset’s financial lifespan. This is often missed or forgotten when lodging tax returns, though can make a huge different to the overall amount of tax you are required to pay.
If you purchased a laptop, for example, this can be claimed back on each subsequent years’ tax return, as long as the depreciation is correctly considered and applied.
Help with your self-employed tax return
If you are unsure on how or what you can apply to your tax return, or whether you are getting the most out of your situation, why not get in contact for a free consultation with one of the team at JacksTaxBack.com today.
Our self-employed tax returns are completed for a flat $150 fee, with no hidden charges or additional fees. Tax doesn’t have to be a taxing experience, after all.