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Self Employed & Real Estate Tax Accountant and Returns Services
As a sole proprietor or self-employed business owner, you are in charge of your own business, which comes with additional taxes and reporting requirements. However, you may also be eligible for certain business tax deductions. At Vikram Gulati Professional Corporation, we assist hundreds of self-employed business owners in Toronto with completing their self-employed tax returns.
Since the tax code treats you and your business as a single entity, you have the freedom to manage your business as you see fit. However, this also brings added responsibilities. You will need to navigate additional taxes and reporting obligations, but you can also take advantage of specific business tax deductions to optimize your financial situation.
Our team is here to help you manage these responsibilities effectively, ensuring that your tax returns are accurate and that you benefit from all available deductions. Let us handle the complexities of your self-employed tax returns so you can focus on growing your business.
Under current income tax legislation, the fiscal year-end for a business must be December 31. The self-employed income tax is due by April 30 following the December 31 year-end, while the personal income tax return, which includes the proprietorship, has a filing deadline of June 15. Additionally, quarterly installments for income tax and Canada Pension Plan contributions may be required for the proprietorship.
As a sole proprietor in Toronto, your self-employed income tax return must include financial statements and one or more of the following applicable forms:
At Vikram Gulati Professional Corporation, we ensure your tax returns are accurate and compliant with current legislation. Our team helps you manage these requirements efficiently, allowing you to focus on your business. Contact us today to ensure your self-employed tax return is handled professionally and on time.
Self-Employed Tax Returns in Toronto
Tax Breaks for Self-Employed Individuals
Navigating tax breaks can significantly benefit self-employed individuals when completing their self-employed tax returns in Toronto. Here are some key deductions to consider:
Split Income with Family Members If your spouse, children, or other family members perform tasks for your self-employed business, you can justify paying them salaries or wages. These payments must be reasonable for the work completed to be deductible against your business income on your self-employed tax return in Toronto.
Claim Home Office Costs for Business Use If your home office is your principal place of business or is used regularly and continuously for meeting clients, you can deduct a portion of various costs on your self-employed tax return in Toronto. Deductible expenses include:
- Mortgage interest
- Property taxes
- Home insurance
- Utilities
- Repairs and maintenance
- Landscaping
While you cannot create or increase a loss from your business activities by deducting home office expenses, you can reduce your taxable income to zero. If your home office costs exceed your income, the excess can be carried forward to future years to offset business income.
Deduct Other Self-Employed Business Expenses Self-employed individuals are generally entitled to deduct any reasonable costs incurred to earn business income on their self-employed tax return in Toronto. Although there are restrictions on certain expenses, many are deductible, including:
- Advertising and promotion
- Meals and entertainment (50% deductible)
- Memberships and subscriptions
- Licenses
- Office supplies
- Salaries and wages (including those paid to family members)
- Telephone expenses
- Vehicle expenses (a portion of gas, oil, insurance, registration, repairs, loan interest, lease costs, automobile club dues, car washes)
For a comprehensive list of deductible business expenses or for assistance with your self-employed tax return in Toronto, contact us directly at Vikram Gulati Professional Corporation. We are here to help you maximize your deductions and ensure your tax returns are accurate and compliant.
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