Canadian and taxes

Discussion in 'Legal Issues' started by kinitex, Jul 20, 2008.

  1. #1
    Any canucks here? I am starting to see a steady increase of income heading my way via clickbank checks. Should I be setting aside a percentage of this money for taxes? If so what about all the money I spend on PPC, right off?
     
    kinitex, Jul 20, 2008 IP
  2. tobycoke

    tobycoke Well-Known Member

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    #2
    Yes, you have to report all income, including Clickbank, but can offset it with your expenses - domain name registration, webhosting fees, advertising fees, Adwords fees, home office expenses, ISP fees...
     
    tobycoke, Jul 20, 2008 IP
  3. 4Offsets

    4Offsets Peon

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    #3
    I've hired Ceridian (in canada ceridian.ca) to do payroll for me, it costs like $20/30 a month for upto 10 employees. I pay myself via a check, ceridian writes check, submits taxes and handles employment taxes etc. then bills my corporation. this means i just pay myself bonuses when there is extra money, via payroll and all my taxes are withheld. I don't have to worry like i used to about doing the job myself.

    If you're making more than a $2000 a month it's probably worth it.
     
    4Offsets, Jul 21, 2008 IP
  4. definitive

    definitive Well-Known Member

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    #4
    I was just going to ask the same question. So does this mean I have to register as a business or is there another way to claim this? I make about $200 monthly from CJ and have no employees or anything
     
    definitive, Jul 23, 2008 IP
  5. niceilike

    niceilike Active Member

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    #5
    Keep a good record of your expenses and write off as much of the income as you can. Honeslty if you are making half decent money pay an accountant to do your taxes for 1 year and then just copy what he does in the future. The accountant will give you an excellent idea of what is deductible or not deductible and how much of you home office you can write off.

    If you have a home office a portion of your mortgage interest, heat, hydro, water, property taxes and internet may all be deductible.
     
    niceilike, Jul 23, 2008 IP
  6. canam

    canam Peon

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    #6
    you are making money, it's not a free ride, when you make money you have to take care of the taxman

    it is better to take care of it in advance than for them to come after you later
     
    canam, Jul 23, 2008 IP
  7. Netochka

    Netochka Peon

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    #7
    No - Canada Revenue Agency doesn't really care about your registering as a business. Just claim all of your income and be sure to register for GST when the time comes.
     
    Netochka, Jul 23, 2008 IP
  8. canam

    canam Peon

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    #8
    Netochka is right, you don't have to register as a business, but you do have to declare all of your income in your annual tax return

    gst only starts to be an issue if you reach a certain amount of yearly revenue, I think it is around $30,000 but you better check with the government to be sure
     
    canam, Jul 23, 2008 IP