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Carmela Pirillo CPA
CPA
Carmela Pirillo CPA
CPA
Carmela Pirillo CPA
CPA
Providing tools to help you navigate your finances
FAQ's

  • What is a T1?
  • A T1 basically refers to an individual's income tax return for residents of Canada, and reports their personal income and any amounts of income tax they owe or the refund they are entitled to. The T1 tax return is filed annually with the Canada Revenue Agency (CRA)
  • Am I Self-employed?
  • If you are unsure about your employment status, it's advisable to consult with a QUALIFIED CPA tax professional who can provide guidance based on your specific situation and local regulations.
  • What is a T4?
  • A T4 is a tax slip provided by employers to their employees. The T4 slip is used to report the income earned by an employee and the deductions made throughout the tax year.

    Employers are required to issue T4 slips to employees and submit copies to the Canada Revenue Agency (CRA).
  • What is the deadline to file my Tax Return
  • Typically, the deadline to file your T1 tax return in Canada is April 30th. However, if April 30th falls on a weekend or a public holiday, the deadline is extended to the next business day.

    If your spouse is self-employed, and files a T2125, the deadline is typically extended
  • What is as a Personal Income Tax Return?
  • A Personal Income Tax Return in Canada refers to the annual filing of an individual's income and related financial information with the Canada Revenue Agency (CRA). The primary purpose of filing a personal income tax return is to determine the amount of income tax an individual owes or is eligible to receive as a refund
  • What is a CPA?
  • The CPA designation is a mark of excellence and professionalism in the accounting profession in Canada

    Individuals who hold the CPA designation in Canada have completed the education, examination, and practical experience requirements set by the Chartered Professional Accountants of Canada (CPA Canada). The CPA designation signifies a high level of competence, professionalism, and ethical standards in the field of accounting.

    To maintain the CPA designation, they must engage in ongoing professional development to stay current with changes in accounting standards, regulations, and business practices.
  • What if I miss the filing deadline?
  • If you are behind on your personal filings, please call us to discuss your situation. We are proficient in helping individuals get the help they need to catch-up and complete their filings.

    If you miss the deadline, you may face penalties and interest. It's important to file as soon as possible to minimize any potential charges.
  • What documents do I need to gather before filing my taxes??
  • You will need T-slips (T4, T3, T5), receipts for expenses, and other relevant documents like RRSP contribution receipts.
  • What is Taxable Income?
  • The portion of your income that could be subject to taxation after allowable deductions and credits
  • What is a Deduction?
  • Taxable income is the portion of an individual's total income that is subject to taxation by the government. It serves as the starting point for calculating the income tax that an individual owes. In Canada, taxable income is used to determine the federal and provincial or territorial income tax liability.
  • Can I claim deductions for work-related expenses?
  • You may be eligible to claim certain work-related expenses, such as vehicle expenses, home office expenses, and professional fees.
  • What is the Goods and Services Tax (GST) credit?
  • The GST credit is a tax-free quarterly payment to help offset the Goods and Services Tax or the Harmonized Sales Tax paid by lower-income individuals.

  • What is a T2125?
  • In Canada, a T2125 form is used to report business income and expenses for individuals who are self-employed or have income from a partnership. The T2125, also known as the Statement of Business or Professional Activities, is a part of the personal income tax return.

    The T2125 form is used to report details about the income and expenses related to a sole proprietorship, partnership, or other self-employed activities. It helps the Canada Revenue Agency (CRA) assess the individual's taxable income from business activities
  • Do I need a T1 with my T2125?
  • Yes, both the T1 and T2125 form a part of a self-employed persons annual tax filing.
  • Do I need to be HST/GST Registered?
  • No, not necessarily. To determine whether you should be HST/GST Registered, we recommend discussing your situation with a qualified CPA. Harmonized Sales Tax (HST) or the Goods and Services Tax (GST) in Canada depends on the nature and volume of your business activities.
  • Am I Self-employed?
  • If you are unsure about your employment status, it's advisable to consult with a QUALIFIED CPA tax professional who can provide guidance based on your specific situation and local regulations.
  • What is the deadline to file my T2125 Tax Return
  • The T2125 form is part of the overall personal income tax return (T1), and the deadline for filing the entire tax return, including the T2125, is usually April 30th. However, if April 30th falls on a weekend or a public holiday, the deadline is extended to the next business day.

    If you or your spouse or common-law partner are self-employed, the deadline to file your personal income tax return is extended to June 15th. However, any balance owing is still due by April 30th to avoid interest charges.

    It's crucial to stay updated on any changes in tax regulations and deadlines.
  • What is a CPA?
  • The CPA designation is a mark of excellence and professionalism in the accounting profession in Canada

    Individuals who hold the CPA designation in Canada have completed the education, examination, and practical experience requirements set by the Chartered Professional Accountants of Canada (CPA Canada). The CPA designation signifies a high level of competence, professionalism, and ethical standards in the field of accounting.

    To maintain the CPA designation, they must engage in ongoing professional development to stay current with changes in accounting standards, regulations, and business practices.
  • What if I miss the filing deadline?
  • If you are behind on your personal filings, please call us to discuss your situation. We are proficient in helping individuals get the help they need to catch up and complete their filings.

    If you miss the deadline, you may face penalties and interest. It's important to file as soon as possible to minimize any potential charges.
  • What documents do I need to gather before filing my taxes??
  • You will need T-slips (T4, T3, T5), documentation of income, receipts for expenses, and other relevant documents like RRSP contribution receipts.
  • What expenses can I deduct on the T2125?
  • Deductible expenses include costs related to running the business, such as rent, utilities, supplies, salaries, advertising, and other legitimate business expenses. Capital cost allowance (CCA) for depreciable assets may also be claimed.
  • What records do I need to keep for the T2125?
  • Keep detailed records of income and expenses, including invoices, receipts, bank statements, and other supporting documents. Good record-keeping is crucial for accurate reporting
  • Can I claim home office expenses on the T2125?
  • Individuals who use part of their home for business purposes may be eligible to claim home office expenses. The T2125 form includes a section for reporting these expenses.
  • What if my business incurred a loss?
  • If the business incurs a loss, the T2125 allows individuals to carry forward the loss to offset against future income, subject to certain restrictions.

  • What is a T2?
  • In Canada, a T2 is a corporate income tax return form. The T2 return is used by corporations to report their income, calculate the taxes owed, and provide other relevant financial information to the Canada Revenue Agency (CRA).

    This form is a key component of a corporation's compliance with Canadian tax regulations.
  • What is a company's year-end?
  • Also known as its fiscal year-end or financial year-end, the Year End refers to the last day of a company's financial reporting period, and marks the conclusion of the company's accounting and financial activities for that particular period

    The year-end is a crucial point for financial reporting, tax calculations, and assessing the overall financial health of the company.
  • When is a company's year-end?
  • A company's year-end is determined by the company and can vary. Unlike the calendar year, which runs from January 1 to December 31, a company's fiscal year can end on any date chosen by the company.

    Many company's stay with the year-end being the last day of month prior the company's registration.
    Many companies align their fiscal year with the calendar year, ending on December 31.
    Some companies prefer a fiscal year-end at the end of the first quarter, on March 31.
    Another common fiscal year-end is June 30, providing a mid-year point for financial reporting and analysis
  • What is a CPA?
  • The CPA designation is a mark of excellence and professionalism in the accounting profession in Canada

    Individuals who hold the CPA designation in Canada have completed the education, examination, and practical experience requirements set by the Chartered Professional Accountants of Canada (CPA Canada). The CPA designation signifies a high level of competence, professionalism, and ethical standards in the field of accounting.

    To maintain the CPA designation, they must engage in ongoing professional development to stay current with changes in accounting standards, regulations, and business practices.
  • Do you offer bookkeeping services?
  • We sure do! A good bookkeeper is crucial for maintaining accurate financial records and ensuring the financial health of your business; so we ensure our bookkeepers not just are proficient in using popular accounting software, but show attention to detail, have good communication skills, analytical skills and are familiar with the nuances and requirements of your business.
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