C'est le temps des impôts!
Thread poster: Josée Desbiens

Josée Desbiens
Canada
Local time: 07:39
English to French
Feb 21, 2008

Je suis traductrice à la pige depuis deux ans et demi. Je viens de remplir mes deux déclarations de revenus (au Québec et au Canada) pour l'année 2007. Étant donné que l'ensemble de mes revenus a considérablement augmenté l'an dernier, je constate que je dois payer une coquette somme de sous (notamment pour le Régie des rentes du Québec) même après avoir déclaré des dépenses comme travailleuse autonome.

Je me demande si je ne pourrais pas trouver d'autres dépenses à déclarer pour évidemment diminuer l'impôt que j'aurai à payer.

Outre mes dépenses de publicité, d'achats de fournitures (ordi portable, entre autres), j'ai aussi déclaré une partie de ma connexion Internet et des frais de rénovation, d'électricité et d'assurances de ma maison. Que pourrais-je déclarer comme autres dépenses? Quelqu'un veut bien partager ses précieux conseils avec nous?


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JennyC08
Local time: 07:39
German to French
+ ...
Désolée ! Feb 21, 2008

Pas de recette miracle malheureusement !
Je déclare la même chose que vous comme dépenses.
Si vous faites appel à un comptable, les frais peuvent en être déduits.
Je pense qu'on peut également déduire les frais de cotisation à un organisme tel que l'OTTIAQ ou l'ATIO.
J'espère vous avoir aidé un peu...


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Tina Vonhof  Identity Verified
Canada
Local time: 05:39
Member (2006)
Dutch to English
+ ...
Some more ideas Feb 21, 2008

Hello Josée,

I understand French but it is easier for me to reply in English if that's ok.

Yes, it is that time of the year again. If you are using a separate room as an office, you can claim a percentage of your mortgage or rent. For example if your house or apartment is 1000 square feet and your office is 100 square feet, you can claim 10 percent of the mortgage or rent as a business expense. Another thing you can claim is subscriptions, for example if you subscribe to a French newspaper or other publication that can be considered related to your translation work. Computer programs, dictionaries and books are also eligible.

Recently I drove a client to the immigration office to interpret for her. Unfortunately it occurred to me only later that day that I should have asked for receipts for parking and for our lunch, because I could have claimed those as business expenses as well.

I would highly recommend that you get an accountant to do your taxes because they know all the ins and outs - it is well worth the money spent and, as Caroline points out, also a claimable expense. And one final tip to reduce your taxes - put more money into your RRSP.


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xxxPRen
Canada
Local time: 08:39
French to English
+ ...
Mortgage/rent Feb 22, 2008

A word to the wise: deduct a portion of your rent, yes. Deduct a portion of your mortgage INTEREST , yes. But DON'T deduct any portion of your mortgage payments, or you'll have to pay a penalty when you sell your house (capital gains? I'm not sure). If you live in a condo, don't forget condo fees, and if you've moved recently, moving expenses, legal fees for house purchase/sale, fees for condo docs, and so on (CRA has a list of allowable moving expenses on its website).

Yes, deduct your membership fees (including Proz, if you pay), and don't forget newspapers, magazines and books that you read to stay up to date on events and increase your general knowledge base (critical for a translator, I think).

I always use an accountant. His fee is extremely reasonable when I consider all the money he saves me, simply because he knows what he's doing and is up to speed on all the latest tax legislation. He knows about expense items I never believed could qualify as deductions for business purposes. I'd rather spend my time translating and earning than wading through tax rules I don't really understand!


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Josée Desbiens
Canada
Local time: 07:39
English to French
TOPIC STARTER
Merci les filles! Feb 22, 2008

Je constate que ma question n'attire pas les foules))

Merci à vous deux pour vos conseils!


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Sylvie Pilon  Identity Verified
Canada
Local time: 07:39
English to French
Quelques autres déductions Feb 22, 2008

Bonjour Josée,

Il y a aussi les frais reliés à l'utilisation du téléphone. Personnellement, mon cellulaire me sert uniquement à communiquer avec les clients, alors je peux déduire les frais inhérents au complet.

Si vous êtes propriétaire de votre maison, vous pouvez également déduire les taxes foncières et scolaires (les frais de condo aussi, le cas échéant), en fonction de la superficie de votre bureau, comme l'expliquait Tina (par ex., si l'on utilise son exemple, alors vous pouvez déduire 10 % des versements hypothécaires, des taxes, de l'électricité, des assurances, etc.). Par contre, j'ai déjà entendu dire que, si vous déduisez ces dépenses, alors vous devrez payer de l'impôt sur la portion qui correspond à votre bureau lorsque vous vendrez votre maison, car cette portion ne sera pas considérée comme résidence principale.

Il y a aussi :
- les frais d'adhésion à des associations professionnelles, mais aussi à des sites comme ProZ;
- le coût des ateliers de formation (comme ceux de l'OTTIAQ);
- les livres et les magazines qui ont rapport à votre travail;
- les frais d'inscription aux conférences et aux congrès (de même que les coûts de déplacement pour vous y rendre, et le coût de la chambre d'hôtel pendant que vous assistez à ces conférences/congrès).

Un dernier point : je réclame les montants payés en taxes de vente (TPS et TVQ) lors d'achat de CD et de matériel informatique (PC, imprimante, etc. mais pas les cartouches d'encre). Mais mon entreprise a un statut «incorporé», et j'utilise la méthode comptable «simplifiée», alors je ne suis pas sûre si vous pouvez faire ce genre de réclamations (je présume que vous avez un statut «enregistré»). Comme l'a mentionné Tina, il serait probablement profitable de consulter un comptable, au moins une fois, pour savoir qu'est-ce qui peut être considéré comme déduction dans votre cas.

J'espère que ça vous aidera à économiser un peu d'impôt

Sylvie

[Edited at 2008-02-22 14:05]


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xxxPRen
Canada
Local time: 08:39
French to English
+ ...
Exception Feb 22, 2008

infolution wrote:

Bonjour Josée,
Par contre, j'ai déjà entendu dire que, si vous déduisez ces dépenses, alors vous devrez payer de l'impôt sur la portion qui correspond à votre bureau lorsque vous vendrez votre maison, car cette portion ne sera pas considérée comme résidence principale.



Sylvie

[Edited at 2008-02-22 14:05]


I believe that's true only if you deduct mortgage payments (principal) - not for expenses or mortgage interest.


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Sylvie Pilon  Identity Verified
Canada
Local time: 07:39
English to French
Thanks for the information Feb 22, 2008

Hi PRen,

PRen wrote:

I believe that's true only if you deduct mortgage payments (principal) - not for expenses or mortgage interest.



That might very well be correct. I'm not familiar with the tax laws regarding this particular item. I think Josée should consult with a good accountant (or fiscalist?) in any case.

Have a good weekend!
Sylvie

[Edited at 2008-02-23 00:51]


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Michael Barnett
Local time: 07:39
English
+ ...
Vacations. Sorry, I mean "business trips". :D Feb 25, 2008

Josée Desbiens wrote:
Je me demande si je ne pourrais pas trouver d'autres dépenses à déclarer pour évidemment diminuer l'impôt que j'aurai à payer.


Don't forget to deduct the expense of trips, or portions thereof, to attend professional development events such as training sessions or even proz powwows!

Michael


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Michael Barnett
Local time: 07:39
English
+ ...
Being self employed gives you tax advantages that are not available to everyone! Feb 25, 2008

Josée Desbiens wrote:
Je me demande si je ne pourrais pas trouver d'autres dépenses à déclarer pour évidemment diminuer l'impôt que j'aurai à payer.


It is true that you cannot deduct your mortgage interest, but if you generate substantial expenses in your business, you can manipulate the funds in such a way as to effectively write off the mortgage interest.

Here is how:
Use all the money that would normally be spent on your business expenses to rapidly pay down your mortgage. Obtain an "operating expense" line of credit at the bank and borrow all the money you need to pay your business creditors. As your mortgage rapidly shrinks, your operating expense line of credit will rapidly grow. Ultimately you will be left with zero mortgage and a whopping line of credit. Now pay off the line of credit. All the interest is tax deductible because it is for business purposes!


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xxxPRen
Canada
Local time: 08:39
French to English
+ ...
That sounds good Feb 25, 2008

Michael Barnett wrote:


It is true that you cannot deduct your mortgage interest, but if you generate substantial expenses in your business, you can manipulate the funds in such a way as to effectively write off the mortgage interest.

Here is how:
Use all the money that would normally be spent on your business expenses to rapidly pay down your mortgage. Obtain an "operating expense" line of credit at the bank and borrow all the money you need to pay your business creditors. As your mortgage rapidly shrinks, your operating expense line of credit will rapidly grow. Ultimately you will be left with zero mortgage and a whopping line of credit. Now pay off the line of credit. All the interest is tax deductible because it is for business purposes!



That sounds interesting! But I'm pretty sure you can deduct your mortgage interest payments (or a portion thereof to reflect the percentage of the house used for the business) but not payments on the mortgage capital. I'm not sure what you mean about using money normally spent on business to pay the mortgage down - can you explain it in a bit more detail?

Thanks


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Michael Barnett
Local time: 07:39
English
+ ...
Making the mortgage tax deductible Feb 25, 2008

PRen wrote:

I'm not sure what you mean about using money normally spent on business to pay the mortgage down - can you explain it in a bit more detail?


Hi PRen

With regards to mortgage payments as a deduction, be careful there. If you do that, you may have to repay a portion of the capital gains to the tax man when you sell the house.

As for the other suggestion, you create a "cash dam" by diverting all your business expense payments toward paying down your mortgage. You borrow the money from the bank to pay your expenses. Say for instance, you subcontract a $5000 job and pay the translator $4000. Instead of paying him $4000 out of your payment from the client, you take that money and pay down your mortgage. Then you borrow $4000 from the bank to pay your obligation to your subcontractor. The bank interest on that $4000 loan is 100% tax deductible. Thus, you have exchanged a non-tax deductible loan (your mortgage) for a tax deductible loan. Do this for whatever business expense you have until the mortgage is paid off.

Michael


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xxxPRen
Canada
Local time: 08:39
French to English
+ ...
It could work....but Feb 26, 2008

Michael Barnett wrote:



As for the other suggestion, you create a "cash dam" by diverting all your business expense payments toward paying down your mortgage. You borrow the money from the bank to pay your expenses. Say for instance, you subcontract a $5000 job and pay the translator $4000. Instead of paying him $4000 out of your payment from the client, you take that money and pay down your mortgage. Then you borrow $4000 from the bank to pay your obligation to your subcontractor. The bank interest on that $4000 loan is 100% tax deductible. Thus, you have exchanged a non-tax deductible loan (your mortgage) for a tax deductible loan. Do this for whatever business expense you have until the mortgage is paid off.

Michael


I can see a problem with that: if I'm an "employee" of my incorporated business, I can't simply pay $4000 on my mortgage from my company's account because it's not a bona fide business expense. I have to increase what I pay myself by the $4000 and then increase my monthly remittance to the gov. for fed/prov tax and CPP, (probably an extra $1500) before I pay the mortgage down by $4000. So I've taken $5500 out of the company, replaced that with $5500 from the line of credit, and then paid down my mortgage from my personal funds, but increased my income tax burden.


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xxxPRen
Canada
Local time: 08:39
French to English
+ ...
Interest, not capital Feb 26, 2008

Michael Barnett wrote:


Hi PRen

With regards to mortgage payments as a deduction, be careful there. If you do that, you may have to repay a portion of the capital gains to the tax man when you sell the house.


Michael


Yes, I agree (see above).


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Josée Desbiens
Canada
Local time: 07:39
English to French
TOPIC STARTER
Merci à vous tous! Thank you all! Feb 26, 2008

De bonnes suggestions, merci!

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