Tax Season is here...File early this year and NOT right before the Deadline (which is May 2nd in 2016)
It's tax season again for 2015 filing, and if you have received all of your tax slips and forms it is always better to file sooner than later to avoid waiting close to the deadline. The more proactive you are at gathering your information, the easier it is for a tax professional to assess which additional expenses can be deducted.
If you file last minute, most standard tax preparers will not ask sufficient questions, thus not optimizing your tax return. Yes there are a lot of nice software out there that can capture some of the basic deductions and credits not claimed, but the software does not customize each individual's situation nor does have a one on one formal discussion with you.
Benefits of using a Chartered Accountant to prepare your tax return
For basic returns, we will be the first to tell you that there are more cost effective alternatives. If you have a few slips and simple employment income you can go to a low cost provider, or download software and prepare your return yourself.
It's when you have changes or complex tax issues where you can really benefit from using a professional. Please see below for some of the instances where a professional is highly suggested.
Small Business l Sole Proprietorship's
As a small business owner, you generate self employment income and a T2125 must be completed. This is an income statement for tax purposes ( similar to that of a corporation return) but for the individuals' business. Understanding all of the tax deductions allowed, how to make tax installments going forward, and managing HST can be complex for business owner's that do not have accounting and tax experience. There are a lot of expenses that get left on the table such as home office expenses, motor vehicle, and meals & entertainment, etc. which could have been used to reduce the tax payers bill at the end of the day.
Where you start to see the benefit of using a Chartered Accountant year over year as professional tax, accounting and advisory advice compounds over time.
Real Estate Agents l Brokers l Sales Professionals l Other Professionals
Similar to that of a small business owner a self employment income tax return is to be completed. Many of the points noted above for small businesses apply to this group as well and using a Chartered Accountant will yield benefits and tax saving opportunities.
With real estate being in a growth market in Canada, a lot of investors have taken advantage and own/operate profitable rental properties. Ensuring you track the expenses accordingly, and understanding the rules on what deductions can be made can really impact your rental income position and save you taxes.
Foreign Property l Investors l Gambling Winnings
Whether you're an investor in various assets, real estate, small business owner or own foreign property, there are various international tax considerations, especially for Canadian Residents that have vacation homes in the US (" snowbirds"), and want to avoid paying US tax.
We also handle tax filings for Canadians that have significant gambling winnings in the US and we assist them to get the withholding taxes back from the US.
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