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=~ 14 -- Scugog Citizen -- Tuesday, J ry 24, 1995 - TAX TIPS Do's and dont's of starting a home business Starting a business from your home can be a very attractive idea. It can be a good starting point for some as overhead expenses can be minimized. However in starting a home business there are other things to zonsider that require careful £ 1 tedge of dg! hs compliances and other administrative tasks. Here are some planning points that you should consider. 1. Business Registration - Make sure that your business is registered and the business name is searched, so that you are not using an existing business name. (note: you do not need to register the business, if you operate under your own name.) 2. Bank Account - Open a separate bank account for your business. This will help separate you personal transactions from you business transactions. 3. GST - You are not required to file returns if your income is below $30,000. However it may be to your advantage to register if you make inventory or large equipment purchases, as you will be able to claim the GST that you paid on you purchases. If registered, you are required to keep track of the GST collected and paid separately. 4. PST - Determine whether or not your business should be charging PST. If so remember that you are exempt from paying PST when making purchases for resale. 5. Bookkeeping - Keep your records current and in an orderly fashion. Invest in a bookkeeping system that works for both you and your accountant. This ensures that you are able to obtain the information you need when you need it. 6. Local By-Laws - Region's Official Plan indicat the By-Laws for Home - Occupations at your local municipality to determine what By-Laws are in place for home occupations. 7. Home Business Deductions - One of the advantages of having a home based business, are the expenses that you are allowed to write off. You can calculate your deduction based on the percentage used on the overall square footage. For example, if the space you are using for your business is one of ten rooms, you can write off 1/10 of rent or mortgage interest, utilities and property tax. 8. Insurance - If you are meeting clients or customers at your place of residence, you «should contact your insurance company to see whether or not that home occupations should not exceed 25% of the floor area and that it should be secondary to the residence. You can ask for Durham you home insurance has busi liability 'age. 9. Professional Advice - Make sure that you get professional advice when setting up a business. A professional will Now Nesbitt Burns has opened its doors to offer exciting investment opportunities in Bank of Montreal Branch, Port Perry. Our firm has provided complete investment services since 1912 with offices across Canada Individual investors, institutions, corporations and government rely on Nesbitt Burns. In addition to bonds, NESBITT BURNS OPENS NEW DOORS IN PORT PERRY Most of all it's performance that money market investments, preferreds, common shares, new issues and mutual funds, Nesbitt Burns provides RRSP, RRIF and Portfolio Management services NESBITT BURNS KNOWLEDGE is POWER 1894 Scugog Street, Port Perry LOL 1H7 Tel: (905) 985-3636 sets have followed our advice have benefitted from our top ranked Research team's investment recommendations. Call Christopher Thomas today at (905) 985-3636 and discover the investment doors that are open to you. Nesbitt Burns apart. Clients who VAN CAMP & KELLER CHARTERED ACCOUNTANTS Income tax planning and return preparation. Personal tax returns electronically filed. Preparation of government returns (T4's, 15°). Financial, estate and retirement planning. HE INDIVIDUALS B® CORPORATIONS Bl SMALL BUSINESSES HB FARMS 204 Casimir Street, Port Pérry, Ontario L9L 1B7 TELEPHONE : (905) 985-9725 TOLL FREE: 1-800-215-3852 help in structuring your company, selecting the right year end, help you with government compliance, future planning and could save you a lot of money and grief. (This article was prepared by Betty Penny who is 'the President of the Durham Home Business Association, and the Principal Accountant of Penny & Associates Accounting Service). Investing your money for the right reasons Rule #1: Don't Lose Money - Are you investing in order to get a tax credit or do you plan tr make money on your investment? Most people would answer "YES" to both questions, where Retirement Savings Plans (RSP's) are concerned. Sadly and often, investors put money in their RSP's that will not make them money. Eagerness to get a TAX CREDIT often leads to making a purchase in a hurry and the "investment" ends up being a disappointment and frequently a loser. When the advertisements headline profits and performance from the past, it is easy to expect/hope that the same performance will happen again. A winning track record looks great; however it can also be dangerously misleading. "Past performance is guarantee of future performance." This is usually written in fine print. But it is very true. So what is an investor to do? Investors these days are concerned about interest rates, no Ernest Basford, Associate 180 MARY ST, PORT PERRY ONTARIO L9L1C4 Phone (905) 985-0712 Fax : 985-9461 Toll Free : 1-800-699-6190 inflation, the value of the Canadian dollar, taxes, and maybe events in such places as Mexico, Russia, and Hong Kong. New investors and those who already invest should ask themselves the following questions: 1) Do I understand the investments I own (or am thinking of buying)? 2) Do I, or will I, sleep 'well at night and not be worrying about what my investments are doing? 3) Are my investments suitable for the current economic situation in Canada? 4) Are my investments suited to my current and expected rersonal and financial situations? People often ask me: "What do you recommend I invest in?" My response pL that I will not make recommendations until the above questions have been satisfactorily answered. (The above article has been submitted by Christopher K. Thomas, Investment Advisor at Nesbitt . Burns, Bank 'of Montreal, Port Perry.) &® PENNY & ASSOC. ACCOUNTING SERVICES Betty Penny, Principal Accouritant @® Computer Training @® Consulting @® Accounting @® Tax Service @® Temporary Accounting Staff ® New Business Setups ® Servicing Durham Region @® Competitive Rates (OF-Ta RV -N LEN QV TT) CIT 4 9.125%" GuaRANTEED INVESTMENT CERTIFICATES 1 year 8.15% 2 year 8.60% CIBC Trust T-D Mortgage 3 year 8.75% 5 year 9.125% T-D Mortgage Sunlife Trust For more information call : MIKE JANACEK, Financial Advisor VALERIE LANK, Financial Advisor Assistant (905) 576-1726 1-800-661-0243 MIDLAND WALWYN BLUE CHIP THINKING™ * Rates as of January 23rd; 1995. Subject to change and held to maturity. ™BLUE CHIP THINKING is atrademark of Midland Walwyn Capital Inc.