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Showing results for tags 'Sole Proprietorship'.
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Hi All, I hope this is the appropriate place to ask these questions. Apologies if I'm mistaken. I started a Sole Proprietorship (professional musician) in October 2016 after my EI ran out, and I want to be sure I don't make any mistakes on the T2125 portion of my return that would skew my numbers inappropriately or trigger an audit, so I've a couple questions: 1. My fiscal year started in October, and I've read that I should end the fiscal year Dec 31. Is a 3 month (or anything less than a full year) first fiscal year normal? I am deducting some gas/parking/insurance for my passenger vehicle as I use it to get to performances/ rehearsals/meetings. 2a. Under the "vehicle expenses", it asks for the specifics of the car used. I've had the car since around 2008, but don't know the exact date of purchase. Truth be told, I don't think I know how to calculate the "opening balance of the undepreciated capital cost" because I'm not sure what that means. Are those details necessary if I'm only claiming fuel, a portion of insurance, and any parking? 2b. Am I required to claim mileage in order to deduct fuel and parking which are tied to specific events and I have receipts for? 2c. I don't have any added commercial insurance for the business use of my vehicle. Does that disqualify me from claiming any portion of the regular insurance? And finally (which perhaps negates the previous questions) 3. Seeing as I only made a little over 2k in those three months, I don't think it makes a difference to my end result if I forgo all deductions and simply claim the small gross amount earned - showing that I've begun self employment. Would it be valid to simply fill the one line of "Gross sales, commissions, or fees" and leave the rest blank, or would that just bring about unanswered questions? In the end, my aim is to show that I began self employment in the latter part of the year. This year is simple: I played a handful shows and got paid for them. Next year will be far more in depth. Thank you for your help, internet people of the UFile forums. I'm nervous about doing this correctly.
Hi, As a Sole Proprietorship, Is their a Maximum or Reasonable Number or Percentage of the Expenses I can claim on my T2125 Since it's the 1st Year for my Business! I've a lot of Expenses! But if your have an idea of reasonable amount or percentage i can claim under the expenses section it will be helpful?! Thanks...
Hi, When I get to my results screen, I get this message, telling me I can't file using Netfile: "An invalid account or GST number was entered within a business or rental property." I know my GST number is valid because I just called Canada Revenue Agency to make sure. Since I'm a sole proprioter, my business number and my GST number are the same. Both are active and should be correct, says CRA. Can someone help me correct this error? If not, I'll have to ditch UFile and re-file everything with one of your competitors. Thanks, Emily