What are the deadlines and timelines for my return?

Deadlines are important and impact the operation of your organization. The consequence of missing a deadline is generally penalties and interest charges under the Income Tax Act and Excise Tax Act. We are dedicated to advanced planning to promote efficiency and decrease interruptions in your business. The personal tax filing deadline is April 30 every year. Self employment returns are due June 15 (but taxes still need to be paid by April 30 if balance owing). GST returns and corporate tax have different deadline depending on filing frequency and year end. Click here for more info.

What bookkeeping services do you offer?

Some of the bookkeeping services we offer are… monthly reconciliation, financial statement preparation, accounts receivable/payable, data entry, bank account management, credit card reconciliation, fixed asset management, inventory tracking and payroll remittances.

What do I need for my CRA review?

Don’t panic! In most cases the review is a simple routine check. The Canadian tax system is based on self-assessment so documents might be required to support your claim. It is important to respond promptly to ensure the approval of your claim. Not sure what documents CRA requires...Skinny Tax can help!

Can I claim medical expenses?

You may be able to claim medical expenses on your tax return. Some expenses include prescriptions, dental, glasses and eye exams, chiropractic and massage, acupuncture, premiums to a health plan and even medical marijuana! Click here for the CRA’s exhaustive list.

Can I claim moving expenses?

You may be able to deduct moving expenses if you have moved more than 40 km to be closer to work. Didn’t keep receipts? You can choose the simplified method to calculate vehicle expenses by using an amount per KM transportation cost. Some other expenses can include:

• Storage and transportation costs for household items such as packing, hauling, movers, in-transit storage, and insurance

• Travel expenses including vehicle expenses, airfare, meals, and accommodation,

• Temporary living expenses for up to a maximum of 15 days for meals and temporary lodging

• Cost of selling your old home including advertising, legal fees, real estate commission, and mortgage penalty

• Cost to maintain your old vacant home after you moved including interest, property taxes, insurance and utilities

• Incidental costs related to your move including changing your address on legal document replacing driver's licenses and the cost of utility hookups or disconnections.

Am I eligible for the Disability Tax Credit?

Do you or a family member have a prolonged impairment in physical or mental functions? We can determine if you qualify for the Disability Tax Credit and reduce the amount of income tax they may have to pay.

What expenses can I claim against my rental income?

Possible expenses that you can claim include: advertising, insurance interest, professional fees (includes legal and accounting fees), repairs and maintenance, management and administration fees, motor vehicle expenses, office expenses, property taxes, salaries, wages, and benefits (including employer contributions).

Should I incorporate?

Deciding on the structure of your business before registration and operation is very important. There are two ways to operate a business. You can operate as a sole proprietorship, which doesn't necessarily require registration unless you want to operate under a trade name, or you can incorporate a business. If you incorporate or want a trade name, you must complete a nuans search at the registries.As a sole proprietor, all business activity is related to you. There is no defining line between you and your operations.

If you incorporate, the business becomes a separate entity that gives you a division between you and business operations. Meaning a buffer of liability comes with the corporation. If your company comes across any legal troubles, your corporation would be held responsible. As a sole proprietor, you as an individual become liable, which means your personal assets are at risk. Some people choose to incorporate for liability reasons alone. Some choose to get really good insurance. 

There can be tax savings when operating a corporation, but to take advantage of these savings you would normally need to have a profit of over $120K annually. Some individuals will start as a sole proprietor and choose to incorporate at a later date. Corporations are more expensive to operate initially, so if you choose that route, you will have to budget $2k - $5K annually for maintenance costs such as accounting fees, legal fees, registration fees, etc.You are not required to start collecting GST until you make over $30K in annual sales, though you can voluntarily register before that if you would like. With either option, you would be claiming your expenses against earned income. You can deduct expenses like vehicle expenses, home office, cell phone, insurance, and other costs associated with running your business.

How can I tax plan for my home-based business?

Self-employment or even part-time employment are one of the greatest tax shelters! They can open the door to tax deductions for things you are already paying for, including a portion of: property taxes, mortgage interest, home repairs, home insurance, landscaping, utilities, vehicle expenses (repairs, insurance, licence fees, gas and oil, car loan interest, capital cost allowance), computer expenses, and more. Split income by paying your kids or spouse to help in the business. You may even consider incorporation if the business grows in size and profitability.