Different kinds of income have to be reported in different places on your tax return. When you are in business for yourself, or you are self-employed, your business income must be reported on the T2125 section of your return. This is presently known as the “Statement of business and professional activities”.
Business Taxes makes it a little complicated and difficult as to what exactly should be reported there. Should it include HST, or should it exclude HST. You are using your car for the business, but the car is not in the business name, it is in your name. Is it ok to claim the expense for the car? Should you claim, all of the automobile expenses, or should you claim a percentage, what is the allowed percentage for auto motive expenses?
What other expenses can you claim? You might also have some equipment, which falls in the same situation, such as, a laptop or a computer. Can you take advantage of other personal assets, and reduce your income tax by claiming those expenses?
What if you are running that business from your home, and you have a dedicated portion of your home set up as a home office or a workshop? How do you claim and adjust your mortgage interest, property tax, cost of maintenance of your home and all your other home expenses for your business?
Do you file a separate income tax return for business and a separate income tax return for personal income such as part time/full time employment?
These are situations we come across on an hourly basis. We applaud you if you know what to do in these situations but we just want to bring to your attention that since we have been dealing with these kinds of issues for so long now, we know exactly how to deal with them. On top of that though, we notice things that other people would not, saving you money in the short term and long term. Call us and take advantage of our over twenty five years of the income tax industry experience. Come see us, we are here to help.