TAX TIME
Be Organized At Tax Time
BY: JACKIE DABLEH-HAKIMIAN DAYE KELLY & ASSOCIATES
We all know how fast time flies. It always seems like“ it’ s that time of year again” when we need to meet with our accountant to get our corporate or personal taxes filed. If you find you are always struggling at the last minute to gather your information and meet with your accountant before the filing deadline, the following information will hopefully get you motivated to get organised early and know ahead of time what information your accountant requires.
Not all incorporated businesses have the same year-end, but it is important that you stay organised and on top of everything so that you can have everything ready for your accountant within a month or two after your yearend. You have six months after your year-end date to file your corporate tax return. Please keep in mind that if you owe taxes, you will need to pay within two or three months after your year-end date( corporate) in order to avoid any interest on balances owing.
Why wait until the last minute? The following are a few tips to help you stay organized and gather the correct information:
• If you use QuickBooks, Simply Accounting, other accounting software, or even Excel, make sure your bank and credit cards are reconciled monthly.
• At year-end, review your accounts receivable list and identify any that may be potentially uncollectible.
• If you have any investments, ensure you have statements for the full year, with details on any new purchases or disposals and the income earned in the year.
• Ensure you have receipts for all capital assets purchased in the year.
• Review your accounts payable listing and make sure it is accurate and current at year-end.
• If you had any new loans during the year, provide copies of all new loan agreements and amortization tables.
• If you made any changes to banking agreements, provide copies of the new agreements.
• If there is any major change in revenue or expenses from the prior year, make sure to have a discussion with your accountant as to the reason why this has happened.
• Reconcile your wage expense to your annual T4 filing.
• Additional information accountants may ask for include property tax and insurance documents, lease agreements, and the like.
• At year end, count inventory
For personal taxes, the filing deadline is April 30. For those who are self-employed, the deadline is extended to June 15. If you owe personal taxes, interest will start accumulating as of April 30.
The following is common information you will need to provide to file your personal taxes:
• If any of the following information has changed, please provide details to your accountant: marital status, home address, telephone number, the birth or adoption of a child, and direct deposit information
• If you sold your primary residence in the year, provide the year of acquisition and proceeds of disposition
• All T slips( T4, T5, T3, T4RIF, T4RSP, T4A, T4E, etc.)
• Medical receipts( Tip: You do not need to bring in every single prescription receipt. If you go to Shopper’ s Drug Mart [ or wherever you obtain your prescriptions ], the pharmacy can give you a printout of all your prescription orders for the entire year.)
• Medical premiums paid
• Interest on student loans
• Child care expenses( For 2017 child care and camps, there is no fitness or arts credit.)
• Investment details( sale of shares, investment counsel fees, and similar items)
• Details of rental and business income and expenses
• Details of foreign investments( only if the aggregate cost is greater than CAD 100,000)
• Are you or any of your dependants disabled? If yes, provide form T2201 – Disability Tax Credit Certificate.
• RRSP contribution slips
• Donation receipts
This list is by no means exhaustive. Every business and individual is different, but these are just a few general items to consider when gathering your information. For further information, please contact your local accountant. +
Jackie Dableh-Hakimian, BBA, CPA, CGA joined Daye Kelly & Associates in 2004 and has been a partner since 2015. Jackie has a wide range of experience in financial statements, accounting and audit services, and personal and corporate tax. Jackie is currently a facilitator and mentor for CPA Atlantic School of Business. Jackie has previously been a member of the EPR Canada Assurance Standards Committee, has volunteered for several organizations and continues to volunteer when the opportunity arises.
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