Serious questions about tax filing for SP's!

[OriannaXO]

There is a shocking amount of information here that I had NOOO idea about!! I'm still fairly confused but reading through as much as I can and writing down the rest for someone else to explain or worry about lol. Thanks so much everyone who contributed to the information for everyone, its really nice to see people step up and help me and whoever else uses the info out If you have anything else, any tidbits or advice feel free to keep posting there is never too little information for such confusing stuff.

P.s Angie I agreeee I miss my old taxes so easy the T4 drop off and then quick return, although I have gotten somewhat more savvy since my first time filing at 17 yrs old when I cried because I thought the tax guy was ripping me off with only a few hundred dollars return hahaha, poor guy.

 

[OriannaXO]

Oh, and don't forget, as a self employed individual you get to pay a double CPP contribution!

Why do self employed people pay double CPP?

 

[sushiman]

Fixed the link

Here is a list of basic business expenses provided by revenue Canada:

Easy fix, Jasmine used .htm - should have been .html

http://www.cra-arc.gc.ca/tx/bsnss/tpcs/slprtnr/bsnssxpnss/menu-eng.html

 

[laurel love]

Great thread, thank you for starting it Orianna.

Business taxes are confusing. It was so much easier working at a Union Job with a regular paycheque and all the little ducks in order, just copy the info on the T4 into the tax package.

But being self employed, wow, you really have to be your own keeper! Remembering to save the bloody receipts and the bags of them! ouch!

I am still trying to understand how a certain above mentioned license can keep our real names out of the business so we as persons are separate. I have probably read this wrong and will have to reread in the morning after a coffee.

I suppose to some people we are damned if we don't and even more damned if we do

Sure miss that union job.

 

[Adriana✿]

Its really simple. Keep track of every single cent you make. Keep all your banking, credit card bills, bills, investments and receipts.

Important: Keep track of what you spend and what you spend it on.

Your accountant will give you these forms to fill out. Photocopy them for each year thereafter.

And don't pay more than $75 to $100 per tax return for an accountant. (certainly DON'T use that pervert (on burrard street) that advertises in the georgia straight.

 

[laurel love]

So, do you have one of those spread sheets and sit down every week to enter the receipts? I managed to do that for 2 months straight!

 

[Adriana✿]

So, do you have one of those spread sheets and sit down every week to enter the receipts? I managed to do that for 2 months straight!

Just add up/deduct how much you made and spent from all your banking and credit cards.

 

[OriannaXO]

So, do you have one of those spread sheets and sit down every week to enter the receipts? I managed to do that for 2 months straight!

I'm super forgetful about little stuff so I bought a day planner and carry it with me everywhere, and put down the amount after every call and total it at the end of the night. Plus I have little accordion file with 13 slots so I have one for each month (1 extra) and toss my receipts in by month and am leaving the rest to the accountant I suppose since Im still wading through all the info too lol.

 

[OriannaXO]

It's not really that you are paying a double share, normally your employer pays half and you pay half - - when you are self employed, you pay the full amount. http://www.servicecanada.gc.ca/eng/isp/cpp/contribrates.shtml

Oh and thank you for explaining that

 

[FunSugarDaddy]

And don't pay more than $75 to $100 per tax return for an accountant. (certainly DON'T use that pervert (on burrard street) that advertises in the georgia straight.

You got to be kinding me. If it's a straight T4 and a couple of slips perhaps that's a reasonable amount. But if there's a business schedule involved, which may include an auto and a home rental schedule your looking at least to double that amount; and that's if thing are brought in in a organized fashion.

That comment is as silly as saying never pay more than $100 to see an SP. And when you think about it, who but a pervert or someone who doesn't know what they are doing would be interested in doing a business return for less than 1/2 of the normal going rate?

 

[FunSugarDaddy]

FOUND THIS ON A WEBSITE


"What does "Statute Barred" mean?

Pursuant to the Income Tax Act the normal period of assessment is three years. If a Return was filed for the 1999 tax year, for example in April of 2000, and assessed (received and acknowledged by Revenue Canada) a couple of months later, say by July 1st, then the three years would run from July 1, 2000. After July 1, 2003 CRA cannot reassess the file unless they allege that the taxpayer was guilty of some misconduct or gross negligence in preparing the Return, in which case they are able to bypass the three-year limitation."

What this doesn't say is that the onus is on CRA to prove this misconduct or gross negligence, rather than the taxpayer. And they will frequently try to bypass this limit by asking a taxpayer to sign a waiver, which of course would be ridiculous thing to do.

So they audited me about my tuition and what not 5 years later. So they can not do that? When I was on the mainland in a "good girl" job and making $60,000 plus I was paying big time taxes even with claiming medical and daycare, and having extra taxes taken off. I hate having to pay the tax man. I work damn hard.
Thanks again.

 

[Adriana✿]

You got to be kinding me. If it's a straight T4 and a couple of slips perhaps that's a reasonable amount. But if there's a business schedule involved, which may include an auto and a home rental schedule your looking at least to double that amount; and that's if thing are brought in in a organized fashion.

That comment is as silly as saying never pay more than $100 to see an SP. And when you think about it, who but a pervert or someone who doesn't know what they are doing would be interested in doing a business return for less than 1/2 of the normal going rate?

Oh please! Fundaddy YOU can charge what you want, I am just letting the ladies know they have other options. But for a simple self-employed return where she just hands you the filled out forms, it should not be more than $100! I made that mistake with my first year and was ripped off for $250.00 (the pervert actually who tried to get me to exchange services!). A client accountant of mine explained it all to me and the next six years I have only paid $75 per return. (I fill out all the forms). Ladies don't choose an accountant that has lots of overhead (such as an expensive office on burrard street LOL)

If she is giving you all her reciepts for you to add up, wants you to fill out the three forms, has kids, T'4s, makes more than $30,000 with the Gst and its a tad more complicated than sure, charge more. ($250 is the going rate for accountants to charge these type of COMPLICATED returns.)

Ladies you don't need to pay more than $75 to $100. Most accountants will say $250.00up to $500.00 but pm me for my accountant, whom I paid $75.00 for my last six years of taxes. He has an office in the westend of Vancouver.

 

[FunSugarDaddy]

I disagree but there's no point in arguing. It's like me saying us pooner shouldn't be paying more than 100-150 to see an SP no matter what.

I would like to think the SP who perhaps has to pay for a seperate incall location, has a website, and has been at it for 5+ years and and has a good rep, can command a higher price than some other lady might be able to.

Professionals work under the same assumption.

More education, more experience, more overhead, (defined as not working out of your house, and claiming your income) usually equates to a higher charge out rate.

But guess what?? That experience and that eductation; those are also the same attributes that are going to lead you to being audited less and hopefully save you more in taxes.

So pick and choose, I'm personally fine by it, but don't be naive enough to think you're not weighing various choices.

And I was under the impression that anyone who is in this business getting someone to provide them with accounting services would have income in excess of $30,000 and would be smart enough to realize that the bigger picture is setting goals (ie owning a condo in 3-5 years) and setting out a plan to actually achieve these goals, which would include having an income to support a mortgage of a couple hundred thousand per year. If I were ever to provide my services to SP's it would be those I would be most interested in helping.

Those that aren't interested in the big picture, could probably go to H&R block and get their taxes done..for perhaps the price you quoted.

Oh please! Fundaddy YOU can charge what you want, I am just letting the ladies know they have other options. But for a simple self-employed return where she just hands you the filled out forms, it should not be more than $100! I made that mistake with my first year and was ripped off for $250.00 (the pervert actually who tried to get me to exchange services!). A client accountant of mine explained it all to me and the next six years I have only paid $75 per return. (I fill out all the forms). Ladies don't choose an accountant that has lots of overhead (such as an expensive office on burrard street LOL)

If she is giving you all her reciepts for you to add up, wants you to fill out the three forms, has kids, T'4s, makes more than $30,000 with the Gst and its a tad more complicated than sure, charge more. ($250 is the going rate for accountants to charge these type of COMPLICATED returns.)

Ladies you don't need to pay more than $75 to $100. Most accountants will say $250.00up to $500.00 but pm me for my accountant, whom I paid $75.00 for my last six years of taxes. He has an office in the westend of Vancouver.

 

[FunSugarDaddy]

What's grey and what's black and white? Do you know or do you even care?

Will I get into providing advice that I have reason to believe is essentially tax evasion..the answer is no. You just finished saying you were audited three years in a row..doesn't that perhaps imply you crossed various lines you shouldn't have?

Been doing this for 17 years, and haven't had someone audited anywhere near this number of times.

But I alway tell all my clients, if you're honest with what you're reporting, you really shouldn't fear an audit. If you're scared stiff about the prospect of being audited, you're probably trying to cheat the government.

Just sayin'

I don't doubt that you do know more than me. I'd be saddened if you didn't. But tell me, how many times do you tell your client about grey area deductions? My guess is ... never. So who do you work for? In order to "protect" your standing with CanRev I'm sure you stick to safe areas? I would were I in your shoes, hence the comment about working for the government ... not the client. Never had an accountant save, nor make me a dime. Cost me for sure.
Just sayin' ...


I love this saying, " If a financial planner was any good ... would they have to work?"

 

[wilde]

Most accountants charge by the hour. If they charge $150 an hour and your return took an hour and a half, then your bill is $225. To say a certain amount should be charged for a return with certain types of activities is grossly unfair. Even H&R Block wouldn't touch your return for $75 unless you are a student or senior. And the person preparing your return is far from what I would call an accountant. You can cheap out on a lot of things but accounting and tax services should not be one of them...

 

[FunSugarDaddy]

So are you trying to tell us that you were randomly audited for three years in a row and they didn't find a thing wrong in each of those three years?

Been in this business for almost two decades now and I'm sorry but I have a hard time believing this.

Well. I know what is grey area for the business's I am in. It works for me.

As a long time financial person I am sure that you know that unless you do something that will "flag" you to CanRev, it is entirely random, as to who they audit.

When they DO audit you they want to catch you doing something wrong. I relished the opportunity to prove I wasn't. After 3 losses they left me alone. Nobody likes to look stupid or justify costs when you lose ... continuously.

Not scared at all. I can justify every action I've done. And have.

 

[wilde]

A wise accountant once said "just because you got away with it, doesn't mean you are right."

 

[FunSugarDaddy]

You're sort of implying that the accountant you've engaged or would like to engage never worked in your best interest and you decided yourself to go into grey areas that the accountants didn't want to enter into. Is that correct? And yet you also say you were audited for three years running presumably because the accountants you did employ went into those grey areas..is that correct?. It's kind of confusing.

Be that as it may, Al hit the nail on the head when he said, professionals aren't going to cross lines that will put their reputation and ability to make a living on the line no matter what a client wants. A good professional should never be afraid to fire a client who he believes is trying to walk on the wrong side of the line.

Random? No... after the first year, when they found no discrepancies, I assumed I was done with them. When they came back on the second year I was surprised, but not worried. The third year I assumed I was on their "to do" list. They certainly gave it a good try. Unsuccessfully.



I agree. But aren't you paying them to work FOR you? To save on the amount of tax you pay? Otherwise what is the point? *shrug* Differing opinions.



So true. But "getting away" with something was never the point. Utilizing every avenue to save tax was.

 

[FunSugarDaddy]

This whole reply is contractory. Care to give specific examples of what you're trying to infer. Specifically what deductions were you trying to take which were premitable but your accountants objected to and/or never advised you on?

Random? No... after the first year, when they found no discrepancies, I assumed I was done with them. When they came back on the second year I was surprised, but not worried. The third year I assumed I was on their "to do" list. They certainly gave it a good try. Unsuccessfully.



I agree. But aren't you paying them to work FOR you? To save on the amount of tax you pay? Otherwise what is the point? *shrug* Differing opinions.



So true. But "getting away" with something was never the point. Utilizing every avenue to save tax was.

 

[Pillowtalk]

Escorts have to suck your dick Krustee. That's worth $300/hr hands down. It's' called "OMFG this is so gross" pay

Hazard pay.