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#21
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![]() Doesn't sound like it's wrong. I know it sucks, but that's pretty typical when you are self-employed and make more money for the first time. The biggest problem is the CPP on the self-employed income which would be close to $4000 of the $11,300. Most of my realtor clients just send in their total GST collected and then get a refund on their input tax credits when they file. And they usually also send in about 15% of their gross earnings just so they don't have this problem. They will give you a little leeway on your taxes and charge you interest at about 7%, but they will hound you to death about your GST if you are behind. Make sure you file it on time though so you don't get hit with the penalties.
Also be prepared for them to send you a nice little present in August requesting installment payments of about $5650 on Sept 15 and Dec 15 for 2011. They only let you go one year and then you need to pay along the way again. |
#22
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![]() Quote:
If not incorporated. Not sure if you can or not, but if you can, look into incorporating... There are benefits. First would be paying a maximum tax of 18% as the corp (I think that is the amount), then dividending the shareholders. Dividends are almost tax free to the shareholder, I say almost as there is an accountment of some on the t4'd income. Something to look into for future. many ways to pay yourself this way. Also if dividended out, then no CPP, so no worries about that money. Or you can even do partial t4'd income and dividends. Basically more options. But don't go to H&R for this, as their heads will explode. You will need to seek a real accountant to do the books this way. If you can work this way, basically you can keep more money, and all done the honest way.
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![]() Setup: 180G DT, 105G Refuge (approx. 300lbs LR, 150lbs Aragonite) Hardware: Super Reef Octopus SSS-3000, Tunze ATO, Mag 18 return, 2x MP40W, 2X Koralia 4's Wavemaker Lighting: 5ft Hamilton Belize Sun (2x250W MH, 2X80W T5HO) Type of Aquarium: mixed reef (SPS & LPS) with fish Dosing: Mg, Ca, Alk |
#23
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![]() Quote:
You may have misread, I don't think he withdrew money from an RSP. He/they took out a loan to buy RSPs in order to bring taxes down.
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Mike 77g sumpless SW DIY 10 watt multi-chip LED build ![]() |
#24
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![]() As global mentioned, maybe look into incorporating and going the dividend route. Works well for me, but I guess each case is different. Just keep in mind you wouldn't be paying into CPP or EI... So that's one downside. Cheers. |
#25
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![]() I think and correct me if I'm wrong, but the book keeper that does the book keeping for her real estate firm did the taxes These book keepers are NOT accountants.
I would guess that the money she owes is broken down into GST owing (so many new business owners/self employed people forget that it is NOT income in their pocket) and they probably disallowed a large number of the deductions she made. The only advice that should make any difference in this situation is she should go to an accounting firm and talk to a CA or CGA and set up a tax plan. |
#26
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![]() it works out right so in the end we owe 2000 something like that no biggy the 11 grand is in account so that is good. im going to get her to explain it to me later
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180 starfire front, LPS, millipora Doesn't matter how much you have been reading until you take the plunge. You don't know as much as you think. |
#27
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![]() I sold Real Estate in the US for years.. And am not familiar with Canadian Tax laws, but in the US I could take deductions for actually expenses such as fuel, meals, clothing, etc.. And also depreciate my vehicle.
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#28
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![]() ya she did all the deductions for gas and other thingsit came down to it was just that my wife didnt put enought away for the income tax. but it works out in the end its only costing 2000 the bummer thing is the ectra mone that she put away relly is what thatshe should have given back so ya its not that bad now
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180 starfire front, LPS, millipora Doesn't matter how much you have been reading until you take the plunge. You don't know as much as you think. |
#29
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![]() Glad its making sense... I still would really advise you to sit down with a real accountant and come up with a tax strategy. It's amazing how much money people can leave on the table without an appropriate strategy.
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