A few items to take note of:
New Tax Initiatives for Private Corporations
This has been a very hot topic since the Federal Government dropped this ill advised surprise on small business in July 2017. The discussion period for this topic ended Oct.2, 2017 with various business groups providing the government with their views on how detrimental this bill is if passed as proposed. We wait for further notice but start talking to your accountant about how this could affect your small business.
If you are an annual HST filer, you may have to pay quarterly installments and the 3rd installment is due October 31st. Check to see if you are required to pay.
It is charity lottery season. This is a great way for charities to raise money. Please continue to support your favourite charities but keep in mind that it is a lottery and not a donation. Tax receipts are not issued for this and they are not deductible.
Tax Processing Review
CRA regularly conducts review of tax returns that are filed. They can ask for various receipts such as donations, medical, tuition, rent etc. If self employed, they can ask for various business expenses including car expense receipts and log.
Ensure you have all your past tax receipts organized & handy if requested by CRA. Also start organizing your 2017 receipts. A receipt scanner is a great way to track and organize your receipts and avoid getting lost.
Did you know you can expense a % of your car expenses used for business based on your mileage log. Car expense can include depreciation on up to $30,000 for the cost of the car or monthly lease expenses. It also includes operating expenses such as gas, repairs, insurance, parking and 407. Talk to your accountant for details.
Car Mileage Log
A constant reminder because many people are still not aware or choose to ignore this. CRA requires you to keep a car mileage log to claim car expenses. Keep track of distance traveled, destination, business reason, etc. to support business mileage. Check your diary and other documentation you may have, plus google maps, to catch up on your 2017 log.
Books and Records
Another constant reminder. Proper books and records are a must for many reasons including knowing how your business is doing and all CRA filing requirements.
I hope you find this general information helpful. Please consult with your accountant or myself if you have any questions.
This material is provided for general information and is subject to change without notice. Please consult with your professional advisor before you act on any of the above information to ensure it’s right for you.