FROM THE SUCCESS PEOPLETM
5 Questions To Ask A Tax Accountant In Lakeland About Filing Your Business Taxes
There are only two certainties in life: death and taxes.
It’s no secret that filing taxes can be a stressful affair. That’s especially true for Canadians, who pay almost $15,000 per citizen per year.
Tax season can leave you scratching your head and low on money. For business owners, taxes can seem even more complicated. Now that you’ve had a chance to review your 2017 tax return, you might have some questions that have left you more confused.
But it doesn’t have to be confusing. Small business owners can take advantage of tax accountant services instead. These professionals can help you save money, avoid penalties, and reduce stress.
Do you need help with filing your business taxes in Canada? Here are 5 questions to ask a tax accountant in Lakeland to steer you in the right direction.
1. How does my business structure affect my taxes?
You might think the government taxes all small businesses the same. But there are key tax differences between different types of businesses.
Your taxes will differ depending on your type of business, location, and size. You might also have to deal with additional taxes for payroll, sales, and commodities. Ask your tax accountant in Lakeland for advice on the best way to file your taxes.
2. What forms do I need?
Are you a sole proprietor? You can file your business taxes on one return. Your personal income tax return contains Form T2125, which is where you will report your business income.
Are you an incorporated business? Make sure you file a personal and a corporate return. Your incorporated business is its own legal entity and requires a separate income tax return. Your CPA will help you determine the right forms for your business.
3. What can I deduct?
CPAs offer no shortage of accounting services. One of the best services, however, is helping businesses with their deductions. Your CPA will help you determine and plan for eligible deductions. These can include basic business expenses, transportation expenses, and travel expenses.
Do you work from a home office? You might be eligible to deduct internet, electricity and other household bills. You may even be able to deduct mortgage interests or rent.
Your accountant doesn’t only save you time. They can save you money. Use their expertise to get your deductions right and save big money on your returns.
4. How much of my income goes to taxes?
This is the million dollar question. Your accountant will help you determine the right amount of taxes based on your income.
The Canadian small business tax rate is 10 percent. However, income tax levels vary from province to province.
For example, Newfoundland citizens have an income tax rate between 3 and 15 percent. In Ontario, citizens pay between 3.5 and 11.5 percent. Your accountant will figure out the right income tax level for you.
5. Do I have to pay for CPP?
Remember the Canadian Pension Plan? Yes, it affects business owners too.
Businesses must pay twice as much into the CPP as they would if they were employees. This applies to all unincorporated businesses making over $3,500 per year. Your CPA will determine the correct amount of tax for CPP.
Your Tax Accountant in Lakeland
Are you looking for a tax accountant in Lakeland? We can help. Contact us for a free 30-minute consultation today.
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