New Year Income Tax ideasPaying taxes isn't really your preferred element of running a company. With the end of 2015 upon us-- and numerous brand-new tax steps about to take result in the New Year-- there are some excellent chances for you to decrease the quantity of taxes you pay.

1. Picking the ideal payment method

Rewards can be a fantastic type of payment, since they permit payment to be deferred up until after year-end. While you cannot count on them entirely, a payment technique that consists of a mix of income, dividends and perks can be an excellent way for owners/managers to decrease the earnings taxes they pay. Where earnings is anticipated to be over $200,000 in 2016, think about paying perks and dividends prior to the end of 2015 to prevent a most likely boost in the leading rate of tax.

2. Acquiring brand-new production and processing devices prior to completion of 2015

Up until completion of the year, all production and processing devices gets a 50 percent straight line depreciation rate After the clock strikes 12 on January 1, 2016, nevertheless, obtaining such commercial property will get a 50 percent depreciation rate on a decreasing balance basis-- which will lead to a slower write-off of the devices.

3. Making the most of a brand-new lower tax rate.

You're in luck if your business certifies for the little company rate and has a December 31 year-end! By deferring sales till 2016, you'll gain from a lower tax rate-- 10.5 percent as compared to the 11 percent you're paying in 2015.

4. Making the most of the small company reduction.

You're likely aware that the very first $500,000 of federal active company earnings in Canada gets advantageous tax treatment by getting approved for the small company tax reduction. When capital goes beyond $15 million, this reduction starts to phase out as a corporation's taxable capital surpasses $10 million and is removed entirely. Exactly what you might not understand is, due to the fact that "taxable capital" amounts to kept profits, share capital and long-lasting financial obligation, there are various methods to take full advantage of the small company tax reduction-- even as your company begins the $10 million mark.

5. Offering workers non-taxable presents

Company owners aren't the only ones who like to reduce their taxes-- your workers will be sure to value some non-taxable presents this vacation season. These non-taxable presents can still be subtracted as company expenditures.

There might be other chances offered to assist you decrease your 2015 tax expense since every company-- and every tax circumstance-- is various. To read more, take a look at our 2015 Year-end tax planning guide.