I'm working for a local company my tax bracket is between 48k-72k.
I have 3 children, barely save anything ! due to high living cost
& Last year my retun was like +47 bucks

Are there any loop holes or tricks to save money legally ?
I know RRSP & all that crap, but i need the money NOW & not when I'm OLD
& grumpy... any advise will be appreciated !

thanks,
jellyMan

Pull the reins on spending! If you are earning over 48K, methinks that is good enough money to live comfortably, maybe not lavishly. Check out your lifestyle!

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wisernow

Jellyman,
I know the feeling.
An RRSP, though an obvious tool for savings, is also considered an asset. So its handy even before you reach old age. e.g: mortgage(first time home buyer), continuing education, refinancing home, loans etc.

Is opening a home business on the side an option? You write off a lot of things. Even if your tax bracket is above what you mentioned, It is possible to work it out that the govt still owes you money. Trust me!

http://www.professionalreferrals.ca/article-506.html

Home office expenses include the pro-rated portion of:
Rent
Minor repairs and maintenance
Cleaning materials
Utilities such as heating and lighting
Capital cost allowance (CCA)
Property taxes
House insurance
Mortgage interest

Who knows... the home business will also put you on course to financial freedom.

Maybe talk to an accountant. Or maybe someone like Promod Chopra, Chandresh can help better. Maybe they can even correct me if I have given any wrong info.

ON the other hand if debt does not scare you and you want some more $ to indulge yourself...something like refinancing your home for an extra 50k will put that money in your hand and will only increase your monthly payments by about 100-125$ (over 25 yrs @ todays rates). So if you have a relatively secure and consistent cashflow that is an option too. Ofcourse, it means that you are getting deeper in debt and may not be what you want. If you put some or all of this 50k into business...maybe it makes more sense. OR use the money to pay of your car/debts so that you dont have to shell out those monthly payments...and in this way have some extra $ left over.

Depends on how you think. Either way...there is always a solution.

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Thanks for the advise Jake3d.
I will contact one of the people you mentioned.

I dont know how you can like comfortably . . .
But i think starting a home based business is a good Idea to save taxes.

I think i need a plan...
Any desis who are into homebased businesses can you please
reply as to how to go about it. I stil have 6 more months to
come up with a plan

thanks
-jellyMan-

In a home business you can only take a loss to the extent you make a profit so in case you make no revenue you cannot put any of the home business expenses against .

Capital loss is against capital gains and not against employment income .

That will not work for you

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We will find a way or we will make one

How about using a portion on my apartment for
business, even though i did not make anything $$$
I still used the space in my home....
Can i claim like 10% rent for home business >
thanks for all your replies
-jellyMan-

If you are not making any $ then I'm not sure. I dont think you can use a home business to create losses. Though I know that deductions can be carried forward to future years. Also in Quebec I think you have to make sure you do not declare losses for 3 consecutive years of starting your business. You should find more info if you google. However I would talk to an accountant. I dont think starting a business in december '04 will help you much(with this years taxes).

http://www.moneysense.ca/planning/taxes/columnist.jsp?content=246359
excerpt from the link:
*If you started a business in 2000 but earned little or no revenue, be sure to report your home office expenses anyway. As long as you have a reasonable expectation of profit later, the expenses reported this year can be carried forward and will save you tax down the road*

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