Ten More Tax Tips

There are many rules and regulations when it comes to calculating and reporting taxes.  A few more tips to help you through the process:

1. All Canadian T-4 slips must be prepared and distributed by February 28th.  
2. All RRSP contributions for 2010 must be done by the end of February. 
3. If you have a home based business, a portion of your household expenses may be eligible as a deduction against your home based business net income.
4. A portion of your vehicle expenses may be an eligible deduction if you use your vehicle for business purposes. Canada Revenue Agency requires that you keep a vehicle log, tracking the total number of kms driven, the business kms driven.  
5. Keep all your vehicle receipts and calculate the % allowed based on your vehicle log. 
6. If you have transferred some personal assets into the business, determine a realistic valuation. For example, the black book valuation for your vehicle rather than the original purchase price.
7. If you or your spouse are self employed both marriage partners must pay any taxes owning by April 30th but have until June 15th to file their tax returns. 
8. The owners of a sole proprietorship or a partner in a partnership must file the tax information for their business on their personal tax return. The business activities must be reported on a calendar year basis. 
9. Incorporated companies can select their year end at any time throughout the year. However, once the year end has been selected it cannot be changed with the written permission of CRA. 
10. As the tax laws are constantly changing, it is often advisable to hire a professional tax prepared to complete your tax return. 

The above information is intended for information purposes only, please consult your professional advisor for recommendations for your particular situation.