In Canada, a person who runs their own unregistered corporation-free firm is considered self-employed. A self-employed person obtains business income as their own income rather than wages from an employer as employment income. The Canada Revenue Agency (CRA) requires you to file a variety of specialized tax return documents annually if you are a self-employed resident and worker in Canada. It might be challenging to figure out which self-employed tax forms apply to you, particularly in your first year in business. It doesn't have to be difficult to file your taxes as a self-employed person, es...
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Whether you're an individual taxpayer or a business owner, understanding how to communicate with the Canada Revenue Agency (CRA) effectively is crucial for managing your finances and ensuring compliance with tax laws. From seeking taxpayer relief to disputing assessments through an objection letter or filing specific forms like the T2062, the process requires a clear understanding and strategic approach. In this comprehensive guide, we'll cover: Engaging with the CRA: Understand the intricacies of effective communication.Submission Process: Learn how to submit documents online with ease.Drafti...
People have called us in Ottawa and asked “file my corporate tax return” never do that. What I mean is never just ask for the corporate taxes to be filed without ensuring that the year-end is complete. In addition, before asking for corporate tax return preparation, ensure that you have had a tax strategy. Ensure that the bank and credit card reconciliation are complete Ensure that your HST reported for the year matches the income in your profit and loss (P&L) statements Ensure that HST balances are reflected correctly in your balance sheet Ensure that if you you want or need to ...
Eleven Tax Deductions Every Startup Should Know About Specially The Initial Investments It is extremely important for start-ups, entrepreneurs and even business pros to keep track of their business expenses. These expenses will reduce your taxes when it comes to file your personal tax returns (t1) or corporate tax returns (T2). When tax season starts the deductions will help and forms your strategic plans to perform tax planning, maximize tax deductions and minimize tax owing. So here are some categories that already exist. All you must do is take advantage of any or all of the following...
Maximize Your Tax Refund in 2020: Keep Your Receipts Create a Dropbox or Google Drive folder to save all of your receipts – not only does this ensure you have them all come tax time, but you can easily share this with your accountant, too. Receipts for everything from eye glasses, massage therapy, prescription medications, and even grocery receipts if you have a specific dietary requirement (like a gluten allergy) are all important to hold on to. Track Your At-Home Hours If you’re an employee and your employer asks you to do some work from home evenings, weekends, or even during work hours, yo...
Real estate agents are now to allowed to create their Personal Real Estate Corporation (PREC) in Ontario Following reason are why you should take advantage of this long overdue privilege. Tax deferrals: The earning that corporation makes is subject to its own tax rates. These tax rates are less than highest marginal tax rates of let’s say 50%. Normally the highest marginal tax rates kick in at $100,000, this means any income above that threshold would be taxes at 50%. Now let’s assume you made $200,000 as a non-incorporated real estate agent, your tax in excess of the $100,000 is %50,000...
Consider these factors when you are looking for a tax professional, please get a professional to help you if your taxes are complicated. Preparing your Personal and corporate tax returns accurately is key. 1. Education and training There are different levels of professionals who prepare tax returns. Some are CPAs meaning they are university graduates who have passed the rigorous CPA exams. None designated accountants who have graduated from college or university but have taxation knowledge. Lastly, there are individuals who have some basic training in preparing a tax return or have learnt to u...