In Canada, at least 49% of the population is living under some sort of crippling debt. There is hardly any Canadian who does not have a debt. This debt gets even worse, when put together with the 15% to 29% tax bracket that each working Canadian has to pay. If only there was a way to save some of the tax money, and you could use it to repay some of your loans. Here are some ways by which you can limit your tax exposure.
Borrow to Invest
One of the worst mistakes that Canadians make, is to take a loan on buying something that they personally want. This is a very bad business idea, as buying something for you with loan money does not yield any kind of return on your money. Furthermore, an investment is tax deductible, while a personal item is not.
Begin a Business
Starting a business is one of the best ways to save on some of your tax money. Depending on the kind of business you have, you will be able to write off a number of items as tax deductible, such as your house (office space), car (transportation), and in some cases, even things that you use on an everyday basis, such as food. However, it is not advisable to start a business just because you want deducted taxes. If you do not have the correct business acumen, you will actually lose more money than you make, which will be more hurtful for you in the long run.