TAX BENEFITS for the SELF-EMPLOYED
Tax Benefits for the Self-Employed There are many tax advantages for self-employed Canadians who work from home and hire family members in their business. This year, if you are self-employed, you may want to consider incorporating home and family into your business to create tax benefits for both the business and the family. Consider the following opportunities to reduce your taxable income and thus increase the amount of money left over to support your family. Individuals in a 40% tax bracket save $40 on every $100 spent. Hiring Family Members If your business needs employees, why not hire your children or your spouse? Of course, the job must correspond to their abilities and the pay be reasonable in terms of the going market rate for such skills. It is usually more beneficial for a sole proprietor to pay family members rather than a third party for the same work. Suppose, for example, you pay one of your children or your spouse $5,000 per year for performing a ta...