Opinions please

[mommy4ever]

Scenario: self employed - at home

1. Do I maximize write offs so I pay little or no taxes(all legit deductions) with minimal increase in rrsp allowable contributions?

2. Do I ignore the writes off and pay taxes? Maximizing what I can contribute to my RRSP(retirement) and pension contributions? But pay taxes. Pay 1000 and be able to put in an extra 4500 in rrsp?

I've always paid little or no tax. But now I'm looking, at it, I can't contribute mych to my retirement that way. Also if I were ever to find myself single, with my tax returns I'd never qualify for a mortgage.

[mombottoo]

We have always maximized our right offs to get our tax bill as small as possible. I don't know about income taxes in Canada, but do you file your taxes jointly with your husband or separately? Here I don't work and my husband is disabled, but part of our income is considered earned income. He can contribute up to $5000 for this past year and I can contribute $4000 right up until April 15th.

Perhaps you should talk to your CPA...

[mommy4ever]

we file together to some extent. If I make under x amount then he can have the difference. However I"m over that this year and was thinking.

If I were to be suddenly single, I wouldn't qualify. Because I make so little with the write offs right now, my current pension amount is a joke if i continue contributing at the same rate. Plus my rrsp would be little.

All of my write offs are legit, as per the rules, however if I didn't have the business we'd pay them anyway. ie mortgage interest, property tax, utilities. I was thinking of not deducting them, and upping my "net" income. This would make my net higher, my contribution to the pension higher, and my rrsp allowable contribution higher. Not to mention a better income overall if I were to apply for a loan or mortgage(no plans what so ever to ever do this, but one never knows).

It seems to make sense to me... but am I missing anything?