The Commerce Journal,Business and Local Businesses
*The Commerce Journal>>>Canada Taxes

When is small business taxes due?


This is my first year owning my own business and I have no idea how to do the taxes or when they are due. I have a small budget and can't hire an accountant, can anyone help me.
I also have T4's from other jobs before this, do i combine them all?

If your small business is not incorporated, its income for its first fiscal year (pick any 12 months for the business) should be reported in the calendar year of your tax return, that the last day of the fiscal yr falls into. Note, it is possible that the last day of the fiscal yr may fall into next calendar year (e.g., 2008) if your business didnt start on jan 1, 2007.

For self employment, u are supposed to pay tax by installments throughout the year. You should contact the CRA to set up an installment account. If u have not done so, the taxes are due by apr 30, the deadline for filing your return.

Your T4 employment income from other jobs is reported separately on your tax return.

If your business is incorporated, you need to file a corporation tax return, in addition to your personal tax return reporting your T4 income.

I think u need to find a tax accountant, or HR Block, to do your tax return, so that u have proper financial statements for your business.

Alright, you are going to go on CRA's website and download Form T2124 (see link below).

You are going to itemize on the form your income and expenses. The net income for tax purposes will be transferred to the jacket. Your employment income is listed on line 101. Your business income is listed on line 135. All this income gets added together on line 150. You then keep doing your tax return like usual.

As a sole proprietor (unincorporated business person), your tax return is due on or before June 15th. You must have your taxes paid on or before April 30 however. If you are married, your spouse's tax return is also due June 15th (since YOU are self-employed).

If you owe more than $3,000, you are in the installment system. You will be required to make quarterly instalments to the government (and province, depending on where you live).

Tags
  Spain Taxes   Singapore Taxes   Mexico Taxes   Ireland Taxes   India Taxes   Germany Taxes   Canada Taxes   Australia Taxes   Small Business   Renting & Real Estate
Related information
  • Questions about foreign pension on taxes for Canadian seniors?

    Canada does have a Treaty with the U.K. Article 17 deals with pensions and annuities. Paragraph 1 states that pensions arising in the U.K. and paid to a resident of Canada are taxable only in C...

  • What is the most tax efficient way to own stock in Canada? I plan on both short term and long term trading.?

    Tax efficiency has got to be way down on your list of priorities. No offense but your income is not high enough to care about taxes and if half your money is an rrsp its irrelevant. Based on yo...

  • What to do if I didn't file my Canada tax return in 2005 and 2006?

    you should file your 2005, 2006 and 2007 tax returns together. otherwise, the CRA will send u a letter asking for the 2005 & 2006 returns.

    ...
  • Tax estimater?

    You left out some important information that you require to have this question answered accurately. The missing information would be CPP premiums, EI premiums, union dues if any, work pension plan...

  • Can I re-file my 2006 tax return ?

    In Canada mortages and home improvements are not tax deductable. The exception would be if your renting out your property. However for reference there is a T4 Adj form that you file to amend a ...

  • Can i claim my two teenage children for the last two years.i forgot to claim claim them as dependant?

    Yes, u can. Just file an amended tax return for each of the prior two years to claim your two other children.

    ...
  • Deduction for a dependant living abroad?

    Once again, IGNORE the US answer above. Why can't they read the category? In CANADA, a person is only entitled to deduct an amount for dependents living with them. That pretty well implie...

  • Transferring website revenue from paypal/alertpay to an offshore bank account?

    If you are a cdn taxpayer and your website business constitute a permanent establishment in cda, you are required to maintain your business books and records in cda regardless where the bank accoun...

  •  

    Commerce Categories--Copyright/IP Policy--Contact Webmaster