As one business owner to another, I am curious to how you pay for your drug, dental and other medical expenses?
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If you are like most of us you are either:
- Paying all medical expenses out of pocket and hoping your accountant finds a small tax break
- Paying for deductibles or expenses not covered by an insured plan like braces or major dental repairs
Regardless to which scenario you identify with, there is a better way I’d like to share with you which will make these expenses 100% tax deductible to your business.
40% Marginal tax bracket
$3,000 in medical expenses (Drugs, Dentist, Physiotherapist, Orthodontist, Etc)
You would have to earn $5,000 before tax to have $3,000 in order to pay your medical expenses. Therefore $3,000 - $2,250 (basic exemption) = $750 tax credit at the lowest marginal tax rate (15%) which gives you a tax savings of $112.50
I’d like to share with you how to make these expenses 100% tax deductible saving you $$ at your highest marginal tax rate.
Let’s face it, we pay a lot of taxes, so why not take advantage of CRA (Canada Revenue Agency) approved programs when possible?
Please let me know if you would like to learn more.