Accounting & Tax ServiceS

Self-employed Income Tax

 

If you work as self-employed, income is reported on your personal income tax return (T1). Self-employed individuals generally use a December 31 year-end. The return is due on June 15th. 

 

You can deduct all expenses incurred in the conduct of your business. We will make sure you claim all allowable expenses to minimize your taxes, and help you claim tricky expenses properly in order to avoid tax audits. . We will help you claim the tricky expenses, including but not limited to automobile, office, melas and entertainment expenses, properly to avoid a tax audit. We also provide advise on other issues such as GST, employing family members, and payroll tax submissions, etc.

 

 

Rental Income Tax

 

If you have rental properties, you are required to report your rental income to Canada Revenue Agency on your personal tax return in a specific manner. If you rent part of your house, the expenses have to be prorated. When you sell your property, you may have to report a capital gain.

 

 

Employment Expense

 

Employers must complete Form T2200 - Declaration of Conditions of Employment to legitimize these deductions. 

 

Employment expenses for salaried employees include travel expenses, supplies, allowable motor vehicle expenses, etc. Employment expense may be entitled to deduct an amount paid for living accommodation. Additional deductions such as advertising and promotion are available for commission-based employees. Employees claiming expenses on their tax returns may be entitled to claim the GST/HST paid.

 

 

Family Tax Returns

 

If your spouse cannot benefit from certain tax credits, for example, credits on tuition fees, pension or disability, age and spouse credits, those credits can be transferred to you.

 

If you are a single parent and you have dependents living with you, you may be entitled to an amount for an eligible dependent credit.

 

Claim all donations on one spouse’s tax return. You may be able to claim a first time donor super credit. Claim all medical expenses on the return of the spouse with lower income if the lower income spouse can use the credit. 

 

You may be entitled to claim child-care expenses incurred for any child 16 or under. Claim children's fitness credit and art credit. If your child is a student and does not have enough income to claim all of the tuition, education and textbook credits, up to $5000 of those amounts can be transferred to a parent or grandparent. A child’s unused disability credit can be transferred to a supporting parent or other members.

 

Make sure you file returns for your children if they earned any income even if they do not owe any taxes. This will create RRSP contribution room, which will save them tax later when they are contributing to an RRSP.

 

If you or your spouse receives eligible pension income, splitting pension income between you and your spouse may reduce overall taxes.

 

If you provide care in your home for an elderly or infirm relative, you may be eligible to claim the caregivers tax credit, but you are required to provide the dependent's income.