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| *Loan,banking and credit>>>business tax |
We got married, started a business and bought a house last year, tax time has me panicked.? |
I just need to know if I have to hire an expensive accountant that I don't know. I have a receipt for everything that I have purchased. Does a person have 6 months after their "year end" to file? All answers are greatly welcomed. Lets try an answer based on Canadian rules. By starting a business I'm going to assume that you are either operating a Sole Proprietorship or a partnership. As such, the business year end is automatically December 31. As a self employed individual you have until June 15th to file your tax returns. however, any taxes owing need to be paid by April 30th or interest begins to be charged. Buying a house has a very minimal impact on personal income tax returns, so that doesn't confuse the issue much. Getting married may result in credit transfers, and some provincial credits are based on household income, not individual. The business is the trickiest part. I would suggest that you find an accountant to help you out, but here are some things you can do to keep the costs down. For the business, categorize your expenses and total them for the year by category. Total your income for the year. If you are working out of your house, provide your home expenses totaled for the year (utilities, property taxes, mortgage INTEREST only, etc.). Total seperately any individual items that you purchased that cost more then $500, such as a computer or equipment that you needed to do the business. Total your vehicle expenses for the year and provide both the total kilometers driven in the year and the business kilometers driven. If you bring things in and they are already organized with the totals done the cost may not be as bad as you fear. When you consider that the accountant will make sure you get all available deductions and credits as well as offer support should CRA ever ask to see things in more detail, the peace of mind may be worth far more then the cost. Good luck! Oh, and by accountant I mean a CA or a CGA in public practice. We don't have CPA's in Canada. That's a US designation. Cheers! Source(s): CGA in practice Your best bet is to contact a tax professional or CPA. Why? Basically, you have a few issues that will require some explanation. A tax professional or CPA can offer you guidance as to what you can deduct and also offer you guidance for future years. The return that you are suggesting to prepare does not have to cost you alot of money. Go to the merchants in your local community ie., Starbucks, Grocery stores, Needlepoint shops, etc and contact the owners of those shops. You will discover that several of them may be using bookkeeping companies, or sole proprietors, that also prepare taxes, and most will say they are happy with the services they provide, and at a reasonable cost. Let a professional do the work for you this year. With some added knowledge about preparing taxes, you might gain the confidence of doing your taxes next year, on your own. If you arrive at that decision next year, I would highly suggest you use Turbo Tax (turbotax.com or intuit.com). PS Technically you have until October 15th to file your return after you have forwarded Form 4868, which was required to be filed by April 15th. Remember, though, an extension to file is not an extention to pay. If you owe taxes, those taxes must be paid by April 15th, enclosed with Form 1040 or Form 4868. Otherwise, if not paid by April 15th, actually April 17th this year, you will have to pay penalties and interest for late filing, and late payment. You should get an accountant but they don't have to be the most expensive. You can hire a more expensive one as the business grows and you have more money to keep from the taxman. Personal taxes are due by the end of April and your business tax is due 6 months after your year end. Get started right away. |
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