Calling all CP accountants or those with sneaky tax knowledge

[IliketoPuck]

Hey all,

It's that time of the year again.....time to file away taxes to keep our government running.

I graduated from U of C in June of 2009, so this will be my first year of actually making reasonable money.

Here's my question: I started consulting in Sept. 2009, and I'm wondering what sort of expenses I would be eligible to write off that are applicable to someone essentially operating a sole proprietorship?

Any suggestions are very welcome! Thanks!

[amorak]

Cliffs: Costs related to earning that consulting income

[amorak]

and you better have all the receipts.

You can also write off a % of your home expenses based on sq ft your home office takes up, but there are a tonne of rules surrounding the use of that space you need to be careful of.

[IliketoPuck]

I had thought about writing off business lunches, cell phone, home internet used for busines and home office....but I didn't have the forsight to save receipts for the lunches...

Also taking my CFA, and the accountant said that might be applicable as well.

[Coach]

not to hijack but, is my new laptop a school expense?

[IliketoPuck]

I think my parents wrote mine off when I was in university.

[Locke]

No, your laptop is not a school expense, nor are books deductible. You cant write your laptop off as a student.

I'm an accountant, but I'll only vaguely answer questions on an open board.

Taxes tend to have specific answers based on specific info.

[IliketoPuck]

Fair enough.

I'm more or less looking for general write offs that would be applicable to someone running a sole proprietorship. I don't need anything overly specific. (Business lunches, Work Clothes, cell phone used for business, home office used for business, car expenses incurred as a result of busines). That sort of thing, I'm not looking for loophole #2.1 clause 7 section A.

[JustAnotherGuy]

Did you charge GST when you billed the work that you contracted for?

[IliketoPuck]

Yes, I registered for a GST number and charged GST on all hours worked.

[amorak]

Originally Posted by Locke

No, your laptop is not a school expense, nor are books deductible. You cant write your laptop off as a student.

I'm an accountant, but I'll only vaguely answer questions on an open board.

Taxes tend to have specific answers based on specific info.

I agree as well, I am an accountant but tax advice on teh internet = trouble.

...That's why I posted some basic-ass cliffs

[JustAnotherGuy]

Originally Posted by IliketoPuck

Yes, I registered for a GST number and charged GST on all hours worked.

Make sure those get filed on time and you properly pay them. They are s if you get behind on things. They think you have their money and they will get aggressive.

[IliketoPuck]

Originally Posted by amorak

I agree as well, I am an accountant but tax advice on teh internet = trouble.

...That's why I posted some basic-ass cliffs

Ok, well thanks anyways, if it's not possible for you to post answers because of the open forum nature of CP, no worries. Thanks for the input anyhow.

[amorak]

Originally Posted by IliketoPuck

Ok, well thanks anyways, if it's not possible for you to post answers because of the open forum nature of CP, no worries. Thanks for the input anyhow.

I can give you some links that will get you on the right path, but you should either pony up for the full blown QuickTax, which has a decent walk through of the deductions, or just hire Locke...

Here's some good general info:

http://www.ehow.com/about_5669405_li...ietorship.html

http://forums.canadianbusiness.com/m...ssageID=241918

[amorak]

I also have my own consulting business (though I am a designated accountant) and I use Quicktax Business, it seems to catch all the deductions that I can think of... But my operations are pretty straight forward, so it's not that crazy.

[Sylvanfan]

I've always found the CCRA website to be pretty good and if you have a question you can phone them. But make sure you have a receipt if you're going to write something off and consider everything. I made a massive blunder last year when I admitted I left some furniture in my house until I sold it, and as a result I had an occupied house and couldn't write off the mortgage interest and property taxes I paid waiting for it to sell. Not having that $5000 write off was good for a $1800 kick in the nads.

[Locke]

Originally Posted by IliketoPuck

Fair enough.

I'm more or less looking for general write offs that would be applicable to someone running a sole proprietorship. I don't need anything overly specific. (Business lunches, Work Clothes, cell phone used for business, home office used for business, car expenses incurred as a result of busines). That sort of thing, I'm not looking for loophole #2.1 clause 7 section A.

Originally Posted by JustAnotherGuy

Did you charge GST when you billed the work that you contracted for?

Only need to charge GST on earnings over $30K.

No work clothes. Meals are generally fine within certian limits and parameters.

[amorak]

Originally Posted by Locke

Only need to charge GST on earnings over $30K.

No work clothes. Meals are generally fine within certian limits and parameters.

50%! 50%!

That's all I remember from the UFE...

[Locke]

Originally Posted by amorak

I agree as well, I am an accountant but tax advice on teh internet = trouble.

...That's why I posted some basic-ass cliffs

Oh yeah. Thats why I try and keep it vague, it doesnt take much for an answer to change in a hurry.

Also, I get paid for this knowledge so I'm not going to just give it away for free.

[Locke]

Originally Posted by amorak

50%! 50%!

That's all I remember from the UFE...

Haha, yeah on the eligible stuff. This is why people should go out and buy drinks for their accountants!