2. Vehicle Related Expenses You can claim the following vehicle related expenses: – gas – Oil changes – Repairs – Toll charges – Parking – Insurance – Tax depreciation (if you own) or lease payments (if you lease) For more information please check out http://madanca.com/blog/what- can-independent-contractors- deduct-accountant-mississauga/ http://madanca.com/blog/what- can-independent-contractors- deduct-accountant-mississauga/

3. Importance of keeping a log book In order to substantiate your motor vehicle claims, you should keep a detailed logbook to track the business/personal use of the vehicle. For more information please check out http://madanca.com/faq/do-i- need-to-keep-a-logbook-to-claim- motor-vehicle-expenses-on-my- return-what-should-i-include-in-the- book/

4. Training Costs Deductibility Training costs are only tax deductible if they relate to maintaining, updating or upgrading an already existing skill. - Course fees paid to maintain license are deductible. - Fees paid to obtain your license are intangible asset. For more information, please check out http://madanca.com/learn/canadiantaxfo rum/can-i-write-off-training-costs

5. Declaring Losses The following is a major redflag and puts you at risk of being audited: – Reporting consecutive years of business losses – Reporting rental losses from a property because you charged below market rents or you are claiming excessive repair costs For more information, please check out http://madanca.com/blog/redu ce-risk-beingtax-audited/

6. Tax Account Number – Mandatory to obtain a tax account number so the CRA can track your tax filings Withholding Tax – Withholding tax applies at a rate of 25% on the rents that you collect in Canada NR6 Form – This form reduces the withholding tax Tax Issue for Non-Resident Investors

7. NR4 Slip – This slip reports the gross rents you collected and the total withholding tax you remitted to the CRA. – You have to collect this form no later than March 31 st of the following year or you will face a penalty Annual Tax Returns – Annual tax returns must be filed – Section 216 tax return is due by June 30 th of the following year For more information, please visit http://madanca.com/blog/non- resident-tax-on-rental-properties-in-canada/http://madanca.com/blog/non- resident-tax-on-rental-properties-in-canada/ Continued...

8. Home office deductions for real estate agents Those who run a home office are able to claim: - Insurance - Property Taxes - Utilities - Mortgage interest - Repairs - Alarm - Rent Conditions: - Primary place of business, or - Continuously used to meet clients. For more information, please visit http://madanca.com/blog/deductin g-home-office-expenses-save- money/ http://madanca.com/blog/deductin g-home-office-expenses-save- money/

9. Three tier structure for investment properties The Three tier structure is designed for and used by real estate investors. It consists of three corporations: 1) A management corporation 2) A Real Estate company 3) Holding corporation For more information, please visit http://madanca.com/blog/benefits -three-tier-structure-real-estate- investors/ http://madanca.com/blog/benefits -three-tier-structure-real-estate- investors/

10. Limited Partnership: Classified as a flow through for tax purposes, meaning that only the investors are liable for tax. Under your own name: Expenses are tax deductible Limited liability Corporation: Double taxation C Corporation: Three layers of tax including estate tax and withholding tax. For more information, please visit http://madanca.com/blog/tax-guide-for-canadians- buying-us-real-estate/ http://madanca.com/blog/tax-guide-for-canadians- buying-us-real-estate/ 7. Buying real estate in the US

11. Management corporations for saving tax Step 1 – Create a New Corporation Step 2 – Determine Expenses to Charge Step 3 – Charge for Labour Hours Step 4 – Write Monthly Cheques to Management Corporation. Make sure management agreement exists. For more information, please visit https://www.youtube.com/watch?v=SE5IkyeAm0s

12. For more information, please visit us at: madanca.com https://www.facebook.com/MadanCharteredAc countant https://plus.google.com/+MadanCharteredAcc ountantMississauga/posts https://www.youtube.com/allanmadan Additionally, you can check out our 20 free tax secrets at http://madanca.com/free-tax- secrets/20-free-tax-secretshttp://madanca.com/free-tax- secrets/20-free-tax-secrets

13. Disclaimer - The information used in this presentation is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided in this presentation.