Today is May 15th and we are exactly 29 days away from filing your sole proprietor tax return. If you are incorporated and your year end is December 31st, you are about a month and a half away from your filing deadline. This might be a stressful time of year for you…trying to find receipts left in your glove compartment…catching up on entering data into your accounting software…maybe you do not know who still owed you money as of December 31st.
Can I write that off? If you have asked this question, you are in good company. Getting to know what is a true business expense can save you bundles at tax time and prevent CRA to disallow your expenses. It can be pretty hairy, as a tax accountant, to figure out what your expenses should look like if you mixed your groceries bills with office supply receipts. The more you ask your accountant to pull out their calculator, the more it will cost you to get your taxes done. Here is what we recommend to make your life easier (and cheaper).
Just like marriage, the coming together of two people can be bliss or a complete disaster. It starts off with a great idea; Mark and Mike love each other’s company and both are experienced plumbers. What could be better than going into business together?