IncomeTaxAct

Legitimate Business Expenses: Paying Family Members

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Legitimate Business Expenses: Paying Family Members

Businesses can deduct payments to family members as a business expense if they meet the criteria of Section 40A(2) of the Income Tax Act. To avoid disallowance during tax assessment, these payments must be legitimate, properly documented, and at fair market value (FMV). Key Requirements for Tax Deductibility ⚖️ To prove that a payment to … Read more

9 Ways to Slash Your Capital Gains Tax on Property Sales

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9 Ways to Slash Your Capital Gains Tax on Property Sales

From houses to farmland, here are nine ways to save on capital gains tax when selling property under the Income Tax Act. Selling a house, plot, or agricultural land doesn’t always mean paying a large amount in capital gains tax. The Income Tax Act, 1961, has nine different sections that allow taxpayers to either pay … Read more