This post made me chuckle and think that your accountant is on something....HE/SHE IS WRONG.....Quote:
Originally Posted by Inspired by Reggio
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This post made me chuckle and think that your accountant is on something....HE/SHE IS WRONG.....Quote:
Originally Posted by Inspired by Reggio
Hi Reggio, You are a star! Thanks for your reply! I feel so much better. I will enjoy discussing this with my (former) accountant and seeing his face when I tell him he is wrong. Thanks for the link. Mimi
I also do it myself! I have known people who had problems with accountants (such as the one you're having). This made me doubt them all! Reggio has a control issue, I think I have a huge thrust issue! hahaha!!!!! When I make mistakes, I cannot stop thrusting myself. lol!!! I just call CRA a thousand times when I need help.
I use Turbo Tax Home and Business and it even said I needed to get a HST number because I made over $ 30,000. I was surprised at that as I have known for years (30 years of daycare business) that our industry is exempt. I have had interviews with potential daycare parents who have asked me if I charge GST/HST!Quote:
Originally Posted by Inspired by Reggio
June
Yup - unfortunately even though you have to choose an 'industry code' when you are doing your taxes that is just so that CRA knows your business .... Turbo Tax itself is not 'industry specific' but generic to all home business ... so unfortunately that warning pops up for ALL businesses ... I just click 'ignore' ;)
You also need to be careful with the Turbo Tax and the use of home for business section at it is also generic and geared to be used with 'dedicated business spaces' that most home business are aka you NEVER use any portion of that space for personal use so the hairdressers salon, the massage therapist office, the mechanics garage and so forth - we do not tend to send our children in their to play on the weekend like we would with a daycare playroom which doubles as the kids playroom as well .... therefore the equation is incorrect for determining SHARED SPACE ... if you just put in the square footage of your home / footage used for business and include for example your kitchen / bedrooms for sleep room / your own kids play area and so forth you will write off way more than you are truly 'entitled' to according to CRA ... in an audit that would cause problems!
So our equations is square footage of home / square footage of shared space used for business x 24/ # hours open for business x 365 days in year / # days open for business = % you can write off .... we need to 'trick' Turbo Tax into writing off that correct amount ... so for example if you figure out manually using that equation that you can right off 25% telling the program that you use 250 square feet of a 1000 square foot home to get it to calculate it at 25% is what you need to do.