4 tips to reduce your taxes

When you take out a personal loan, you cannot deduct the interest you pay from your taxes. Saving money allows you to gradually convert your personal debts into business debts, the interest on which is fully deductible.

There are many tax rules on deducting interest: consult an accountant or tax specialist to determine if you can take advantage of this strategy. A National Bank advisor can then suggest financing solutions and a financial structure to simplify your management.

Take advantage of the GST and QST

By registering for taxes (GST and QST in Quebec, or HST in some provinces), you can charge taxes on the professional services you provide. The advantage? You then have the  option of being reimbursed for part of the taxes  you pay for your business expenses.

If your annual income is $30,000 or less, you may or may not register for taxes. But beware: if you earn more than $30,000 in one quarter or in four successive quarters (whether in the same year or not), your registration is mandatory.

Do you want to save without having to think about it to pay your taxes? With systematic savings , you regularly set aside small amounts through direct debits.

Deduct your expenses

As a self-employed person, your income is equal to your business income minus your expenses. To reduce your taxes,  deduct your business expenses  : cost of your office (even if it is at home), transportation, communications, heating, business meals, etc. Keep your bills and receipts for at least seven years in case of an audit.

Good to know: your  RRSP contribution room , your borrowing capacity and your employment insurance are calculated on the basis of your net income. So make sure that all your deductions are justified and that they represent your real income.

Are you the owner? The  All-In-One® Home Equity Line of Credit could help you put tax strategies in place. Talk to your advisor.

Make your statement at the right time

If you or your spouse are self-employed, you have  until June 15  (rather than April 30) of the current year to submit your income tax return for the previous tax year. Note, however, that if you have to pay income tax,  interest is calculated as of May 1  : so  be sure to file your tax return as soon as possible! To pay the amount you owe the government, use your  online bank  : it’s quick and easy!

Paying less tax thanks to an RRSP, but by how much? Here are four concrete cases!

If retirement seems like a long way off for you, don’t forget that an RRSP can also allow you to buy the biggest asset you’ll ever own: a house. In fact, the Home Buyers ‘ Plan (HBP) allows you to draw up to $35,000 from your RRSP, without tax penalties. Prefer to go back to school? With the Lifelong Learning Incentive Plan (REEP), you could withdraw from your RRSP up to a maximum of $20,000 to finance your new degree!