Forum Discussion

Robert_Gauvreau's avatar
Robert_Gauvreau
Contributor 3
18 days ago

🌟Ask An Expert: Time to Save $—The Ultimate Home Service Tax Plan with Robert Gauvreau🌟

Did you know that 92% of business owners pay more tax than they’re legally required to? I’m
Robert Gauvreau, founder and CEO of Gauvreau | Accounting, Tax, Law & Advisory, and I’m
here to help you avoid that!


From Nov 6 - 12, I’ll be answering your questions and sharing key strategies like optimizing
your business structure, maximizing deductions, and more.

Let’s take control of your financial future together—drop your questions below!


If you missed my session at Jobber Blueprint: Live, "Time to Save $—the Ultimate Home
Service Tax Plan," check out upcoming events here: jobber.com/events.

  • jaf's avatar
    jaf
    Contributor 2
    17 days ago

    Hi Robert, you had mentioned that leaving money in the business vs paying out bonuses at the end of the year could be a good tax strategy.   Could I ask if that money could just be left in a high yield savings account or do we need to "show" that it was reinvested into the business?   Not sure if my question is clear?

    • JeffCJ's avatar
      JeffCJ
      Contributor 2
      17 days ago

      I had a similar question, and was in addition wondering if it makes a difference what kind of business structure you have? E.g. does this work as a sole proprietorship?

      • Robert_Gauvreau's avatar
        Robert_Gauvreau
        Contributor 3
        15 days ago

        JeffCJ, yes, it 100% only works if the business is paying tax as a corporation.  A sole proprietorship will not work as you are paying tax on the income of the business (not on how much you take out) in a proprietorship.  A corporation has a reduced rate of tax on business income, and there is a supplementary tax on withdrawing the funds from the corporation.  If you leave it in the corporation, you won't have to pay the supplementary tax.

    • Robert_Gauvreau's avatar
      Robert_Gauvreau
      Contributor 3
      15 days ago

      Hey Jaf.  Happy to help.  There is no requirement to justify what you are investing in.  The only needed element is that the entity is a corporation, and that the funds ware not withdrawn personally.  A high interest savings account would work.  Just a word of caution that all interest is taxable as passive investment income which is high.  Another recommended investment option would be purchasing some sort of index fund where you only have to pay tax on the eventual sale assuming there is some type of gain (no tax on the accumulated gain on an annual basis). 

  • JeffCJ's avatar
    JeffCJ
    Contributor 2
    17 days ago

    Home office expense question: I have been under the impression that I can't use home office as a deduction (even though I do a lot of work at home) because I don't have a "dedicated office" space that is only used for business. Is this true? Also, I often also use a coffee shop as a work space, but I haven't been deducting my expenses there. Should I be? Would it be 50% deductible? 

  • WestonD's avatar
    WestonD
    Contributor 2
    17 days ago

    Great presentation. Looking forward to the discovery call with one or your people. 

  • samalamasue's avatar
    samalamasue
    Contributor 2
    17 days ago

    Hi Robert! Thanks so much for the info session - really enjoyed it. I have a question about claiming home office expenses. If I am on a well, would things like replacing the pressure tank or buying replacement filters count against my taxes in the same way that a portion of a city water bill would? We don't pay for water as you typically would but we do pay in other ways and had to replace some equipment for the well system recently. Thanks!

    • Robert_Gauvreau's avatar
      Robert_Gauvreau
      Contributor 3
      15 days ago

      Hey samalamasue.  You are correct, these 'maintenance costs' could be included in the home office claim.  In essence, any non-capital expenses can be pooled together, and a portion of those pooled expenses can be deducted as a home office expense.  For example, if your house was 2,000 square feet and your home office was 200 square feet, you could claim 10% of the total pooled home expenses.

  • JeffCJ's avatar
    JeffCJ
    Contributor 2
    17 days ago

    Hello! Is this the place for followup from the event this morning? The link given didn't work

    • julie's avatar
      julie
      Jobber Community Team
      17 days ago

      Hey JeffCJ! You're in the right place!

    • Robert_Gauvreau's avatar
      Robert_Gauvreau
      Contributor 3
      17 days ago

      Hey Jeff, yes this is the place to ask me any questions you have following the presentation, happy to help!

  • WestonD's avatar
    WestonD
    Contributor 2
    17 days ago

    If my accountant filed me as an llc last year (2023) could I go and retroactively file as an S corp? My tax burden was super high compared to my take home because there was no pass through and I was taxed on everything. 

    • Robert_Gauvreau's avatar
      Robert_Gauvreau
      Contributor 3
      15 days ago

      Hey WestonD.  Unfortunately you can't go back and make a retroactive election.  You can only make the election on a go forward basis.  Happy to work with you to ensure you are set up properly prior to the end of 2024 so you don't get overtaxed again in 2024.

  • Jamierunco77's avatar
    Jamierunco77
    Contributor 2
    17 days ago

    Hi there I have a question what kind of threshold should one have in order to become a Scorp we just recently bought a house and my husband still works a full time job filing together is also something I'd like to know I pay all the taxes he does not how do you know what the other person owes? I guess that's several questions in one. Thank you for your time looking forward to some jobber swag

    • Robert_Gauvreau's avatar
      Robert_Gauvreau
      Contributor 3
      15 days ago

      Hey Jamierunco77.  It really comes down to how much your taxable income is and what joint filing credits you have.  If you find that your taxable income is getting upwards of $100k, it is likely beneficial to look at a different structure, likely an Scorp or an LLC.  Happy to support if you want to reach out.

  • julie's avatar
    julie
    Jobber Community Team
    17 days ago

    Hey Robert! I do some work under my name, and I have an incorporated business (limited liability) in Canada.

    Is it advisable to register my name as a sole proprietor under my LLC to maximize my tax deductibility? Thanks!

    • Robert_Gauvreau's avatar
      Robert_Gauvreau
      Contributor 3
      15 days ago

      Hey Julie.  Is there any reason why you wouldn't bill everything from your incorporated business?  Since you have it, I would suggest you do all of your work out of the incorporated business and bill from there (since it is already in place).  Tax rate in the incorporated business will be around 12% and provide you with an added layer of protection.  LLC's are only US based, so nothing to do there.  The incorporation should be used for everything and maximize your deductions in there.

      • julie's avatar
        julie
        Jobber Community Team
        15 days ago

        Thank you for clarifying! From the sound of it, it would be best to stick to billing everything through my incorporated business. I appreciate your advice!

  • AberDawn's avatar
    AberDawn
    Contributor 2
    17 days ago

    Hello- I've always filed taxes as a sole proprietor. If I obtain an LLC, will I need to file personal and business taxes separately, or can I still file as an individual under my social?

    • Robert_Gauvreau's avatar
      Robert_Gauvreau
      Contributor 3
      15 days ago

      Hey AberDawn.  If you obtain an LLC, you will have to fill out a separate filing related to the LLC, but all of the income will flow through to your personal as it always has.