Like Grant Basiuk is going to teach at our business workshop this month, you have to regularly check your business scoreboard.
When you keep an eye on the score and the clock, you learn how to make better decisions.
Now is a good time to check the balance on your capital gains and losses, especially if you’re a sole proprietor and your year-end comes on December 31.
According to the Canada Revenue Agency, you have a capital loss when you sell, or are considered to have sold, a capital property for less than its adjusted cost base plus the outlays and expenses involved in selling the property.
Let’s say you sold some investments, such as stocks or bonds. If you made money on the sale, you are subject to income tax on the gains you report. The rate of tax depends on how long you held the investments before selling.
However, if you lost money on the sale, you can use that loss against your capital gains.
Remember, though, capital losses can be used only to reduce or eliminate capital gains. They can’t be used to offset your other income or your entire tax bill.
You can use the losses on any of the three previous taxation year or carry them forward indefinitely.
Make sure you check your books now to make sure you have enough capital losses to offset any gains. Otherwise, it may be a good idea to sell off some capital to ensure your tax bill isn’t too high.
And for help with your scoreboard and business decision-making, make sure you check out our Calgary business coaching session with Grant. He’s running a two-hour session with A1 Accounting as host, teaching you how to watch your business scoreboard.
Grant, a business coach with Forzani Business Coaching, offers the free workshop Friday, November 29, from 9:30 to 11:30 a.m, at the Elks Lodge and Golf Club. Register early at Eventbrite. We have limited seating available.
You can also contact Grant to book a meeting.
Fall Into Orange
Our Calgary photo contest ends today at 5 p.m.!
We’re still looking for entries into our #FallIntoOrange photo contest. Don’t worry if your pictures are snow-covered … that’s part of the beauty of autumn in Calgary!
Take your picture and add it to our Facebook page. You can also Instagram or Tweet it with the hashtag #FallIntoOrange.
Here to help
A1 Accounting, a Calgary accounting and bookkeeping firm, is here to assist you with your taxes and planning. We specialize in personal taxes and small-business accounting and financial services. Contact one of our tax specialists and we can help you optimize the tax benefits and credits available to self-employed individuals and small businesses.
Fill out our contact form or give us a call at 403-226-8297.