11 Jun 2013

Your deadline is coming.

Sole proprietors have until June 15 to file their income taxes. Luckily, June 15 falls on a Saturday this year, so you have an extension to the next Monday, or June 17.

You will need a  T-2125, Statement of Business and Professional Activities. You will then report your self-employment income on lines 135 to 143 of your T-1.

If you’re scrambling, here’s a quick checklist to get organized.

  • Copies of all invoices and receipts
  • Statement for any bank account used for business expenses (chequing, credit card, line of credit)
  • Deposit slips and cheque stubs
  • Summary of expenses and/or an electronic file with any bookkeeping you have done
  • Bills for business-related phone, mobile, fax, long distance
  • Bills for internet service
  • Records of vehicle expenses, including gas, car washes, parking, insurance, lease/bill of sale, payments with interest, repairs, maintenance, registration
  • Log of kilometres driven for business and odometer start/finish
  • Receipts for office equipment, cleaning, supplies and furniture

Remember that you can also claim your home-office expenses.

Your home office and supplies are claimable if the work space is where you conduct most of your work (more than 50 per cent) or if you use the space only to earn income and must use it on a regular and continuous basis for meeting clients or customers.

Such home-office expenses include:

  • Mortgage interest or rent
  • Property tax payments
  • House insurance payments
  • Gas bills and other utilities
  • General home maintenance

Can you help?

We sure can. We specialize in small-business accounting and financial services. Contact one of our tax specialists and we can help you optimize the tax benefits and credits available to self-employed individuals and small businesses.

Fill out our contact form or give us a call at 403-226-8297.