What You Need To Know About Small Business Income Tax Returns

Running a small business?

If you have business income, whether it is your full time income or just a small business you run “on the side” you do not have to file your 2015 Income Tax Return until JUNE 15, 2016 (excluding incorporated businesses)!  And if you have a spouse, even if your spouse does not have any income related to the business, they have until June 15, 2016 to file their return as well!

The catch, however, is that if you OWE the CRA then you are still expected to pay your 2015 tax balance owing by April 30th 2016.  So unless you are SURE that you will be getting a refund, you should have your 2015 Income Tax Return prepared before April 30, 2016.  If it is prepared by April 30th, then any Balance Owing can be paid on time and you will avoid paying interest on the Balance Owing.  Once prepared, we still have until June 15th to efile your return.  PLEASE NOTE: APRIL 30th falls on a Saturday this year, therefore the CRA will consider any Balance Owing to be paid on time if payment is made by Monday May 2nd, 2016.

Why have a professional accountant prepare your Income Tax Return?  An accountant is knowledgeable in the area of Tax Law and can ensure that every opportunity is taken to save you money!  This applies to even the most simple tax situations, but especially applies when Business Income is involved.  There are many things that a knowledgeable accountant can do to ensure you don’t pay any more money to the CRA than you have to.

If you are running a small business from your home, we can take a proportionate business deduction for the area of your home used for your business.  This helps to save you money!  There are consequences to doing this that many people overlook, but the benefits of taking these deductions outweigh the consequences.  The key is that you should be informed… Off-the-shelf tax software does not do this for you, and you are far better off to have a professional accountant looking after your interests.  Business Income can be tricky, and I have many clients who have come to me ONLY AFTER THEY ARE IN “hot water” with the CRA.  Please don’t make this mistake.  Come and see us and we can ensure we take advantage of all opportunities available AND keep you out of trouble with the CRA.

To ensure you are taken care of properly, please call us at 905-623-5244 to book an appointment today!