Sey es rg a FE Ware PaN att AUIS CREAN saree eee Rick Anr + choles ot ‘business, for: Voursell le new world tax mee \ sideline,” you ‘ean! Sul eriten this’: : world, We continue today with our faces, New. places = : appointment ‘as sales rep fo Kam Freightways i rep for the ng? Tah ene are: ‘business ‘into business, then make: : Working up 3 este —. West. coos Mei {been awarded the contract for dehumidifiers for the fitness rooms a Castlegar & District Community. Complex. Once the dehumidific review of tax tips and traps, supplied by Elio Luon- go, senior manager with Peat Marwick Thorne, : chartered accountants, Note: these comments are "gen- eral in nature and tax rules change constantly. Also beware GAAR (the general anti-avoidance rule). Always check further how this information applies.to your situa- tion and possibly seek expert advice before taking any steps. TIP: If you can, choose to be self-employed. You will then have a chance to do more tax planning than employees, In some situations, certain salespeo- ple can: be: considered. self- ‘employed, © TRAP: There is ‘often a fine line between being self-employed and being ‘an Ask Rev- loss ta be used to reduce her income. If you claim deprecin- “tion; ‘you might, lost part of the’ incipal, residence capital gains > Prin ‘exemption, TIP: Consider incorporating : an active business to take advan- tage-of the small business deduc- | Mike: Grenby Syndicated Columnist tion (so the company. phys: only 19 - 23 per cent), small ppisiness capital gains exemption: (up $500,000) and income splitting opportunities through paying div- idends to family members (up to $23,000 will be tax-free if they have no other income). |; \ TRAP! You pay additional Costs,to incorporate: ‘and Maintain a Timin enue Canada for its Employers Guide to Source Deductions and review the section headed “Deter- mining employer-employee Tela- tionships.” You could also ask Revenue Canada for a ruling using form CPT-2, If Revenue Canada rules: ‘you are not self-employed, then it could disallow many of the deductions you claimed. You may choose any fis- cal year-end for your business, it doesn't have to’ be Dec, 31. And your self-employed income is taxed in the year in which the busi d falls crs are in place, patrons of the weight and fitness room'will notice | a com fortable difference, “Workshoppers — Friday, Aug 9 was the 13th Annual jl . Fit workshop. Fitness instructors:and leaders from as far-away .as:Fer- nie‘and Elkford attended and’ several stayed in Castlegar for'the week- end.’Some golfed and others foured the area and. shopped, Yet another le of mixing ‘with p old Move — In an effort to promote and support I local and Cana- ‘inesses, the Castlegar Sun that, it will no longer accept US retail oriented advertising. Healthy Busi and employees please note that the fap lane and the weight room at the Castlegar Aquatic Centre are open from 12:30 to 1:30 Monday to Friday. Early birds can.swim and use the weight room Monday, Wednesday and Friday: from 6: 30 to 9:00 am. If you need to vent some fru: after th Toon is open most nights until 7 pm.’ “There’s no Business like Sports — More than.70 yo ages 14-20 from all over Westem Canada and the United Stat wil last 9-years. In a reverse of the ‘it’s cheaper in the US! story, fhe ‘Thun der ‘birds are happy to. come to Canada where ice time. the:arena. ‘The fitness room and pool are the'thousands of. dollars they. bring Ke Y inclide,” ood fishing”; ‘great golfing’ “peace and oe Okanagan”, and “beautiful area”. With a ‘good supply ¢ Castle; side trips to Zuckerberg Island, Nerigin’s Tomb,’ ‘Doukhobour: Mase- urm,: West. Kootenay Exhibition Centre and’ Castl borscht?” Castlegar has enough work to keep 20. carpeni bowers bisy ove ihe wont four ot ont Be Cee Bey a ee $435,000 Forestry building for BC Building Corporation: In New| Denver, they are’ building a $120,000 RCMP house and doing about $1027 million i in renovations to the ‘New Detiver Pavilion, a an interme-| Christmas with. the New Denver Pavilion to February 1992. Your business is our business! Call us at 365-5579 t y . So if the year-end is Jan. 31, 1992, you won’t have to declare your self-employed income until you do your 1992 tax return in the spring of 1993"= even though you eamed most of the money in 1991. TRAP: With such a year-end, you will also have to wait an -;; extra year to claim any start-up losses against your other income... A business fiscal year that strad- dles a calendar year could affect |. your ability to contribute toan RRSP, as contributions now are based on the previous year's income. Deferring | tax is Beatz, until 5 you retire,- incorporate’ or “other. wise have to pay off what you owe,..and have no funds set aside to pay the bill. Having. this” deferred and.often growing tax. er “albatross” hanging around your. neck can then be stressful. TIP: If you are self-employed, you don’t have to pay UIC premi- ums. That will save you up to almost $1,000 year. TRAP; If you don’t pay UIC premiums, then you can’t claim - UIC benefits when you are out of work. TIP:, You can claim reason- able home office expenses if you work from your home. This enables you to deduct part of your mortgage interest or rent, hydro, property tax and other_. expenses which otherwise would not be deductible. “TRAP: There are’ quite. a fe restrictidns ‘on claiming home- - office expenses.:For example, 1990 | PONTIAC: 6000 LE © 4dr. sedan ¢ tilt wheel 3.1 Lt. V/6 EFI engine * overdrive automatic trans. * fog lamips © cruise contro! ““e factory cassette stereo: 6 * only 23,000 kms. 2 In stack at Incredible: : KALAWSIY PONTIAC BUICK te 11989) LI9, 5 tains BING OF CARS savings from new. price, is d from other income only if you are unincorporated. The way ,the Share-holdings are set up’ is important. You definitely need expert advice here. ' TIP: “Crystallize” the benefit of the small business capital gains’ exe mption. This, means ae ne ‘the. exemption now,' while it still exists, and at the same time increasing the value for tax pur- poses (the “adjusted cost base”) of qualifying small business shares to reduce the future tax lia- bility. TRAP: Again, you will need expert advice here to make sure this process is advantageous in your case and if so, to carry out the procedure correctly. You will Selling something? Phone 365-5266 employed‘ logses ‘may’ ‘be! also.nced to consider the alterna- tive minimum tax (AMT) and any ‘cumulative net investment : loss (CNIL) implications, ™: TIP: If you belong to a part- nership, draw some money out of your capital account and accumu- lated earnings to pay down’ non- deductible debt like a home new world of tax planning } mortgage, ‘The partnership could ‘then borrow funds to replace the lost working capital and the inter- _est would become deductible. ° “TRAP; Not all partners might have the same needs for cash andy so might not want to load up: eS partnership with debt. Additional planning could solve this problem § 7Be VINNING TEAM Classified Ad Notice Due to our print schedule we would like to notify our readers that our classified ad deadline is - 4 the Monday before - _ publication date-at 11:30 am. ‘SHOP LOCALLY! Merchants make it their policy to “stand behind” what they sell Providing customers with extra “fol- tow up" service makes a good store even better, Local merchants' Interest {n your complete satisfaction does not stop after you've pald for your pur- chase and left the store. They are happy to assist you should problems arise later. Your business Is Important to them and they want you to know you can depend on them. When you shop locally, everyone bene- fils, It'a more convenient so you save gae and timo. You get friendly, knowl- edgeable service because local mer- chante “know” you and appreciate your business, They depend on you to keep their stores going strong. And some of what you spend goes back Into the com- munity in the form of taxes and charita- ble contributions paid by the merchants, Sponsored by as H : 1 Fae Annie’ s Gold Jewellery ' “Diamond. Ring Draw. i i ae : "No Purchase Necessary! ‘Name Address Phone Oraw Date: Sept. 3 Clip ad and bring to: sane 's soo Jowollery, Fireside finn lobby. 385-2 Car) ~yiatade the. = °te %s, me ap fo SCLVIEE* Be . (SEF aisciplhe- AA go TO SUMMER camp AY, LEMINGS- - @BOPNM -GINT (RD HALL* CASTLEGAR: BZ. SCRVE = «fo aAdvavriee = FbS- 6264 365-6677 Wednesday, August 21, 1994 FULLY LOADED WITH OPTIONS & FEATURES Aero package and spoiler Electric rear window defroster Daytime running lights Full gauges package 5 speed manual transmission including tachometer Fog lights Cassette stereo system _ Tinted glass Sport reclining bucket seats Intermittent wipers Split folding rear seat Rear window washer and wiper Floor mats ow $9555 55 KALAWSKY PONTIAC BUICK GMC (1969) LTD. ‘THE KING OF CARS——- 1700 Colutibia Ave., Castlegar 365-2 155. 55 Collect TRAIL, FRUITVALE, ROSSLAND CUSTOMERS CALL 364-0213