Jun
17

CRA Service Improvements for Businesses Announced

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Last year, the CRA held the Serving You Better consultations to improve their services. It received feedback from businesses, accountants, industry associations and CRA employees. Recently, the CRA published the results of the consultations. The report shows an action plan to deliver service and program improvements for small and medium sized businesses through 2021. Some of the improvements included in the report are: - Businesses will be able to sign up to receive email confirmation when the CRA receives a document or payment. - Businesses will be able to upload up to 10 documents at once in the “Submit documents online...
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Jun
12

Reporting your self-employment income: Reporting Methods

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There are two methods in reporting income – the cash method and the accrual method. Farmers, fishers and self-employed commission agents can use either the cash or accrual method. All other self-employment income must be reported using the accrual method. What is the cash method? When using the cash method, self-employed individuals must report income in the fiscal period they receive it and deduct expenses in the fiscal period they pay them. When using the accrual method, the self-employed individual must report income in the fiscal period they earn it, no matter when they receive it and deduct expenses in the...
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Jun
10

Reporting your self-employment income: What is a fiscal period?

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As a self-employed individual, you report your income based on a fiscal period. What is a fiscal period? A fiscal period is the time between the day your business starts its business year and the day it ends its business year. A fiscal year for an existing business is usually 12 months. It cannot be longer than 12 months. But it can be shorter than 12 months in some cases. Generally, a self-employed individual have to use a December 31 year-end. But for those who are eligible individuals, they may use another method of reporting business income that will allow them...
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Jun
05

Reporting Business Income as a Sole Proprietor

As a sole proprietor, you report income or loss on a T1 income tax and benefit return. You or your authorized representative must file a T1 return if: - You have to pay tax for the year - You disposed of a capital property or had a taxable capital gain in the year - You have to make CPP/QPP payments on self-employed earnings or pensionable earnings for the year - You want to access EI special benefits for self-employed persons - You received a demand from the CRA to file a T1 return - You are claiming a tax refund, a...
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