The Chamber luncheon was held on February 19th at Breezy Bend Country Club. Thanks once again to the amazing staff at Breezy Bend for the delicious lunch!
A very informative presentation was given by Rita Tully CPA CGA on tax tips and traps for business owners. She spoke about the two most quickly audited items: vehicle expenses and restaurant and entertainment expenses.
It is important to claim any vehicle expense appropriate and to always maintain an up-to-date vehicle log. Remember to record the odometer reading at the beginning and end of each fiscal year. There are several apps available to help with this, one being “Mile IQ”. This app is a great way to record your mileage and you are able to download a monthly report. Vehicle logs need to be kept for seven years. You can claim your gas, insurance, registration, CAA membership, interest (up to $10/day) and leasing costs (up to $9600/year). In order to properly document your expenses you will need the original receipt showing what exactly was purchased and not just a credit card statement.
Rita also spoke about restaurant and entertainment expenses, the second most audited item. Poor documentation is a common problem. Business meals can be claimed at a rate of 50%, however, make sure you have logged all the relevant information (who you met, your business relationship, reason for meeting) and keep the original receipt. GST and gratuity may also be claimed at the 50% rate.
The different types of entertainment that are allowable were also discussed such as tickets to the theater or hospitality suite rentals. Also discussed were disallowed expenses such as sports club membership dues and the use of recreational facilities.
In conclusion, the most important message from Rita’s presentation was to properly document any and all expenses that you are claiming. It is up to you to prove the expenses claimed during an audit.
Mike Marykuca gave the business profile of PIONEER WINDOWS & DOORS.
This family run business was started i 1989 by 30-year Headingley resident, Mike Marykuca. Pioneer Windows & Doors will do anything that has to do with glass: windows, doors, glass repair, mirrors, etc. Pioneer will event encase stained glass panels into windows, although this is very tricky due to thermal expansion.
Pioneer has recently opened at its new Headingley location at 8 Fast Lane.