Thing to Remember for Your Taxes...

[rennea]

For all of you who haven't done your taxes yet.......

INCOME TAX PREPARATION

RECEIPTS TO KEEP

PLEASE KEEP ALL RECEIPTS FOR ITEMS SUCH AS THOSE LISTED BELOW – IT WILL HELP YOU AT INCOME TAX TIME



For the House:

You are allowed to claim a percentage of all household expenses based on the square footage exclusively devoted to business purposes:



· Rent or Mortgage Interest (interest only, not payment)

· Heat, Hydro, Water

· Phone bills - long distance costs, cell phone for business purposes

· Internet

· House insurance

· House repairs/maintenance

· House taxes



For the Vehicles:

Remember to record your vehicle odometer reading on or January 1st – record the mileage as of December 31st. Revenue Canada allows you to claim the percentage of the total vehicle expenses based on the percentage of business kilometers versus total kilometers.



· Keep a Mileage Log for EVERY business related trip -parties/shows, delivery, general business purposes - bank, stationary supply store, etc.

· Gas receipts ( total vehicle gas expenses for the year)

· Car insurance and license

· Car repairs/maintenance

· Parking and tolls



Other expenses to Track

· PC Groceries

· Office Supplies – computer supplies, pens, stationary, postage

· Photocopying

· Hostess Gifts

· Newspaper subscriptions

· Fees for Income Tax Preparation

· Bank Charges, loan interest, mortgage

· Advertising

· Kit cost

· Meals out

· Donations

· Clothing (some preparers will let you claim some)

· MISCELLANEOUS – if in doubt- keep the receipt anyways!

· House hold repairs – a portion of these costs will be tax deductible

Hope this helps

 

[stefani2]

taxes - yuckThanks Rennea,
I TOTALLY forgot about vehicle reg. and ins.! Oopss - now I know for NEXT year I guess.

Have you done yours yet? We are SO late this year - usually we have ours done by Feb. - we didn't give them to h&r until a week ago.

 

[stefani2]

moreDon't forget PWS costs!

Aren't you allowed up to 11 or 12% of your house sq. footage to be written off for your 'home office'? Plus, (I think) it is up to $2000 for renos.

 

[Tanoi]

We're getting ours done tomorrow. Where do we find "receipts" for our PWS and our original sign up costs for the kit? That's about all I'm missing.

ETA: I found this through a search not realizing it was for Canada. But the same would still apply...where do I find those? TIA.

 

[KellyTheChef]

I print out the email that states they pulled the $$ out of my account. That's the only receipt that I am aware of for the PWS.

Did you print out your contract when signing? I would use that and just hand write on it the amount and how you paid for it. (Kit credit, credit card, etc.) Even if you used kit credit, you can claim that $$ cuz it's $$ you earned that went into your business!

 

[Tanoi]

Well luckily I'm a pack rat at all of my paperwork. I found the bank statement with the charges for both the Kit and the PWS. It was back when we were using a different bank, so I couldn't just find it online. Hopefully that works for it....

Thanks for your help.

 

[Tig]

I'm a Canadian newbie here... I got a question regarding this tax stuff. Of course, its going to be for next years tax time, but I want to be prepared now. I will be 'signing' on this week.. (I hope theres an incentive, just like that salad spinner that just ended!, lol) so Im not "officially" a PC Consultant just yet.

When you file your taxes, do you file all this under your personal taxes? Or do you have to file a business return? I have no idea , since I always have done the basic personal income tax through ufile or quicktax.

And I imagine, your taxable income is after all your expenses related to TPC, right?

And thanks for the list of things to hold onto!

 

[yankeeinontario]

You file a personal tax report. Keep track of your incoming checks, etc as T-4's are not issued.

 

[reba515]

all these write offs are the main reason my DH is so "GUNG HO PC!" I couldn't quit if I wanted too