Income Tax Time Comes Every Year; if you are Self Employed are you prepared?
Income Tax time comes every year but are you ready for it? For many small and mid size business owners in Canada income tax time can be a big dread. You try to prepare by having all your receipts in order and contributing to an RRSP in hopes to reduce the monies you owe. When surprises hit are you ready for them?
Income taxes can be paid in two ways.
Canadian Revenue Agency has options for paying your taxes:
- Instalments (usually quarterly payments)
- Lump Sum
If you find yourself short on paying your income tax what do you do?
- Borrow from a LOC
- Take out a 2nd mortgage
- Take out a Loan
- Use the Equity in your home
- Pay bills on credit cards so you can pay your taxes
- Do nothing and pay them next year
A strong financial plan is needed to successfully navigate your finances each year.
Like most self employed people many take a live and learn process to your business model. You weren’t born with all the knowledge but every year you hope to get better and better. A mortgage broker can be a valuable asset when looking to refinance a mortgage or even debt consolidate all your bills into one low monthly payment, this can include income tax consolidation.
Pitfalls of Being Self Employed with poor credit or stated income?
With a few miss steps it is easy to find yourself being BFS, business for self, with A-1 credit to struggling to find mortgage financing with poor credit or a lender willing to work with stated income. More so being self employed with income taxes outstanding for one year you may have great difficulty convincing your bank to work with you.
How to pay Canadian income tax – If you don’t have the money saved
With one call to www.yourequity.ca 1-877-744-3436 we can assess you current situation and provide mortgage solutions that will help you achieve greater cash flow for today. We work with our client’s current situation and help guild them to a brighter financial future.
