Tax guides
Bookkeeping under Canadian federal and provincial rules.
Record each supported business cost once. A corporation or partnership may repay what it owes the payer and, if registered, claim a qualifying GST/HST credit. Corporations pay their income tax; partners pay tax on their shares. Sole proprietors claim the business portion on T2125, pay their own tax, and treat withdrawals as draws. Check home-office and pre-incorporation costs separately.
Self-employed · Partnerships · Corporations
Start at the last reconciled month. Gather bank, card, sales, purchase and payroll records, enter each transaction once, reconcile balances and give the preparer supported reports and unresolved items before filing. Sole proprietors and partners pay tax on business income; corporations pay their own income tax. General partners may owe partnership GST/HST, and corporate directors may owe unremitted payroll deductions or GST/HST.
Self-employed · Partnerships · Corporations
Yes. Canadian sole proprietors, partnerships and corporations can keep their own books in a spreadsheet or software; no bookkeeper is required. Start with sales, expenses and proof, then reconcile bank and tax balances. Proprietors owe business taxes personally; partners pay tax on their shares; corporations pay corporate tax. Partners, directors and non-arm's-length property recipients may also owe specified business tax debts.
Self-employed · Partnerships · Corporations
Yes. Dividends from your corporation can support a Canadian mortgage, but the lender decides what counts. Ask first which years and records it needs. For a new application, prepare T1s, T5s, notices of assessment and corporate statements; self-employed applicants may need two years of notices. At renewal, ask your current lender if updated proof is required.
Corporations · Self-employed
For Canadian-dollar tax reporting, translate each sale when it arises, then reconcile the marketplace payout to gross sales, refunds, fees, tax and any funds held back. Record exchange differences separately. A net bank deposit is not the sales figure. Self-employed sellers report income and expenses on T2125; corporations use their financial statements and T2.
Self-employed · Partnerships · Corporations
A Canadian corporation normally needs a year-end balance sheet, income statement and retained earnings information to complete its T2 using GIFI codes. The CRA does not require a CPA to prepare them. A separate audit, review or compilation report depends on corporate law, shareholders and anyone receiving the statements, such as a lender.
Corporations
Not sure which rules apply?