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Year End Tax Checklist

April 22, 2021

Business Insights

What should I send to my accountant at tax time?

 

CRA COMMUNICATION

  • Prior Year Tax Return (if you are using a new accountant)
  • Prior Year Notice of Assessment
  • Any other CRA communication

EMPLOYMENT INCOME

  • T4 – Statement of Remuneration paid by your employer
  • T4A – Pension, Retirement, Annuity and Other Income – if you claimed CERB, you should receive a T4A showing the amount of CERB and CRB you claimed

SELF EMPLOYMENT INCOME

  • Sole Proprietors -T2125: Statement of Business or Professional activities or your financial statements
  • Partnerships – T5013: Partnership Information Return or your financial statements

INVESTMENT INCOME

  • RRSP Contribution Slips – this is for contributions made between March 2nd of the previous year and March 1st of the current year
  • T3: Statement of Trust Income and Designations slip – This shows income earned from a trust like a mutual fund
  • T5: Statement of Investment Income – this shows how much interest you earned from a bank or dividends you received from a corporation including your own
  • T5008: Statement of Securities Transactions – this details your income or losses from securities transactions
  • Gains and losses on investments
  • Dividends not shown on a T5 – such as dividends from foreign investments

Note: you need to advise your accountant if you have foreign investments in property or shares over $100,000

RENTAL INCOME

  • Gross income from each property
  • Property expenses such as:
    • Advertisine
    • Insurance
    • Mortgage interest
    • Management/admin fees
    • Maintenance and repairs
    • Property taxes
    • Strata fees
    • Utilities
    • Appliances

OTHER INCOME

  • Alimony or separation income
  • Child support
  • Old age security
  • Canada Pension plan
  • T600 – Canada savings Bonds

DEDUCTIONS, CREDITS & EXPENSES

  • Receipts for Eligible Medical and Dental Expenses – these are expenses not reimbursed or covered by medical coverage. Ask your pharmacist for a statement
  • Receipts for Charitable Donations – these are deductible if you received a donation receipt
  • Tuition or Education Expenses – colleges, universities and other accredited education institutions issue a T2202 – Education & Textbook Amounts Certificate. This could be tuition you paid for yourself, spouse, child or grandchild. Interest paid on student loans
  • Support for a child or Spouse – you can claim child-care expenses or spousal support
  • Disability certificates
  • Moving Expenses – you can claim moving expenses if you moved to earn self-employment income
  • First Time Home Buyer
  • Child Care Costs – daycare or pre-school expenses

COVID 19 – HOME OFFICE CLAIM

  • If you worked from home during COVID 19, send the total number of days to your accountant

EMPLOYMENT EXPENSES

  • You need a T2200 form filled out and signed by the employer
    • Meals and entertainment
    • Accounting and legal
    • Advertising and promotion
    • Lodging
    • Supplies (postage, stationary etc.)
    • Professional dues
    • Other Expenses

HOME OFFICE EXPENSES

  • Home Office sq. feet and total sq. feet of home
    • Insurance
    • Mortgage interest or rent
    • Maintenance and repairs
    • Property taxes
    • Strata fees
    • Utilities

AUTO EXPENSES

  • Annual km total: _____ Annual business km total
    • Make, model and year of the car
    • Estimated market value
    • Lease payments
    • Fuel
    • Repairs and maintenance
    • Insurance
    • Interest on borrowing
    • Lease terms

INSTALLMENT PAYMENTS

  • Any instalments paid for income tax

CHANGES IN PERSONAL CIRCUMSTANCES

  • Be sure to tell your accountant about any changes in your personal circumstances
    • Did you get married or divorced?
    • Did you move, sell property, or do major renovations for accessibility?
    • Did you go back to school; or did your child go to school?
    • Did you have a baby?
    • Did you, or someone you care for, become disabled or seriously ill?
    • Did you start a business?  Even a side gig like driving an Uber or becoming a social media influencer (yes, that’s a business).
    • Did you start renting out your basement?
    • Did you turn 65 or start collecting your CPP?

Extra Tip: No matter whether you think it impacts you or not, be upfront, and make sure the details are known so you can be confident you are getting every credit and deduction that you qualify for.