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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May
29

Starting your Own Business: Transition from Employee to Self-Employed, Part 2

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In part 1 of our blog series, we listed the 3 ways to make the transition from Employed to Self-Employed. Part 2 of this blog series will focus on tips to making your transition from Employed to Self-Employed smoother and easier. • You can be a business owner by simply owning shares in companies, including stocks in public companies, and preferred shares in private corporations. • You can start a sole Proprietorship by turning your hobby into a business • Find ways to bring in more income, as you will need more cash flow to transition to business owner. • You...
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May
27

Starting your Own Business: Transition from Employee to Self-Employed, Part 1

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Starting a new business is an exciting and challenging journey to take on. Any self-employed individual will tell you that the level of commitment needed to succeed should not be underestimated. Long hours and hectic schedules are the norm in the lives of the self-employed. But as they say, the bigger the risk, the bigger the reward. So if you think you have a great business idea that you feel strongly about, go ahead and take the leap! Get ready to move from being an employee to self-employed. And to prepare you for this life-changing transition, here’s everything you need to...
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