Below you can get answers to a variety of frequently asked questions about accounting for individuals. If your question is not listed here, please contact us!
What information is needed for personal income taxes?
- Current contact information, including SIN numbers, of all dependents
- Prior year’s tax return for all family members
- Prior year’s notice of assessments for all family members
- Key life events in recent years – marriage, child, new home, etc.
- Child care expenses
- T4s, T4As, T4RSPs, T4RIFs, and all other tax slips
- Investment income T5, T3, and T5013 slips
- Investment statement for the entire year, and/or tax package (often provided by broker)
- Medical, dental and other private health care expenses
- T2202A for tuition
- Public transit passes
- Details on any matrimonial or child support payments, if applicable
- Direct deposit information (required if changed from last year or to set up for the current year)
- RRSP contribution receipts
- Confirmation on foreign property holdings
- T4E for income from Employment Insurance
- Charitable donation receipts
- Interest paid on student loans
- Carrying cost, such as loan interest paid for investment use
- Political contributions
- NEW* – Details of the sales of a principal residence in the taxation year
When employed, what is required to deduct employment expenses from income?
- T2200 for home office eligibility (signed by employer)
- Home office expenses, including utilities, mortgage, stationary, other purchases, etc.
- Vehicle expenses used in employment, including vehicle purchase and contract, mileage, maintenance – log should be maintained on a daily basis (should also detail the total km’s driven in the year and the amount driven for employment purposes), insurance, union dues (not reimbursed by employer)
- Moving expenses (not reimbursed by employer)
- Tool purchases documentation for trades people
- If you are a commissioned salesperson, documentation for advertising, promotion, meals and entertainment, other expenses
- New motor vehicle purchase details and other motor vehicle expenses
- Legal expenses related to employment or child support amounts
As a business owner and sole proprietor, what should I maintain throughout the year to bring in for my personal taxes?
- Software backup of bookkeeping records
- Manual records of sales and expenses (if books are not electronically kept)
- Partnership agreement, if applicable, along with profit sharing percentage
- Vehicle expenses used in business, including vehicle purchase and contract, maintenance – log should be maintained on a daily basis (should also detail the total km’s driven in the year and the amount driven for business purposes)
- Key contracts and agreements summary or soft copy of contracts
- Details on capital assets purchased and sold during the year
- Home office expenses (see employment section above)
- Inventory count records (current and prior year if required)
If I own a rental property, what is required for my tax preparation?
- List of units owned with address and ownership percentage
- Expenses on each unit, categorized by expense type, such as mortgage interest, real estate agent fees, utilities, cleaning fees, management fees, property tax, office expenses – all corresponding invoices should be maintained, expenditures should be tracked via Excel spreadsheet
- Copy of bank statements (where transactions for the property are maintained)
- Copies of all rental agreements
- Rental income details for each unit
- Details on all expenditures (greater than $500) categorized by unit
Am I required to pay instalments throughout the year if requested by CRA?
Yes. Below are some examples of when this would occur.
Instalments are periodic income tax payments that must be paid on certain dates. These are to cover tax that you would normally have to pay in a lump sum on April 30 of the following year. Instalments are not paid in advance; they are paid during the calendar year in which you are earning the taxable income.
When your net tax owing in two consecutive years is greater than $3,000, CRA will require that you pay instalments (as per their calculations). You will be charged interest if all of the following conditions apply:
- We send you an instalment reminder in 2017 that shows an amount to pay
- You must pay by instalment in 2017 (see Do you have to pay tax by instalments?)
- You did not make instalment payments, you made payments that were late, or you paid less than what you were required to pay
We charge instalment interest on all late or insufficient instalment payments. Instalment interest is compounded daily at the prescribed interest rate, which can change every three months.
What do I do if I receive a reassessment notice or an enquiry letter from CRA?
Contact your accountant and forward the notice or letter to them as soon as possible. Responses and filing a notice of objection are time-sensitive.