One of the significant advantages of joining our team is the positive impact of running a business on your overall finances. Our team members enjoy a number of tax deductions as independent GLOBE agents/operators.

Here are the tax benefits of having a personal business as part of the GLOBE Team:

1. Business expense deductions: As a business owner, you can deduct many of the expenses related to running your business, such as rent, supplies, salaries, and other operating expenses. These deductions can lower your taxable income, reducing the amount of taxes you owe. More information can be found on the Canada Revenue Agency (CRA) website: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/business-expenses.html

2. Home office deduction: If you use part of your home for business purposes, you may be able to deduct a portion of your home expenses, such as rent, utilities, and insurance. However, there are specific requirements for claiming this deduction, so it is important to consult a tax professional to ensure that you qualify. More information can be found on the CRA website: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/business-use-home-expenses.html

3. Small business deduction: If your business is a Canadian-controlled private corporation (CCPC), you may be eligible for the small business deduction. This deduction reduces the amount of tax you owe on the first $500,000 of active business income earned by your corporation. More information can be found on the CRA website: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/corporations/provincial-territorial-corporation-tax/small-business-deduction.html

4. Capital cost allowance (CCA): You can claim CCA on eligible capital assets that you purchase for your business, such as equipment and vehicles. This allows you to deduct a portion of the cost of the asset each year, reducing your taxable income. More information can be found on the CRA website: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/allowable-capital-cost-allowance-accelerated-investment-incentive.html

5. Income splitting: If you have family members who are shareholders of your business, you may be able to pay them dividends, which are taxed at a lower rate than regular income. This can help you reduce your overall tax liability. More information can be found on the CRA website: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/corporations/provincial-territorial-corporation-tax/dividend-tax-credit.html

6. Registered Retirement Savings Plan (RRSP): As a business owner, you can make contributions to an RRSP and deduct the contributions from your taxable income. This can help you save for retirement while also reducing your tax liability. More information can be found on the CRA website: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/business-income-tax-reporting/personal-income-tax/registered-retirement-savings-plan-rrsp.html