Lead To Business
business expenses may
Here's how that works. Let's say you are in a 40% tax bracket meaning that for every dollar you earn, you pay 40% in income taxes. Let's say you are paying off a loan at $1000 per month. In the first year you would pay $3942.99 in interest. Because the loan is a business expense, you receive 40% of that amount or a $1577.20 tax return. This is equivalent to a significantly lower interest rate.
This tax advantage could apply to:
- A business that you started or bought into.
- Renovating your house to create a rental apartment.
- Buying a rental property.
- An equity investment in a Canadian company.
When considering the tax implications of an investment, you should always consult a certified accountant or your financial advisor.
Get more tips!
When debt can increase your net worth
When debt can lead to non-financial benefits
Can you pay back your debt in a reasonable timeframe
Web site content is for informational or illustrative purposes only and is not be considered or used as a substitute for professional financial advice from an accountant, lawyer or certified financial planner. Click here to view our full legal disclaimer.