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Self-Employment Business Income Expenses

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Hi there,

 

My wife and I have been using UFile for the past couple of years and it has worked great!  This past year, my wife was on maternity leave until September.  She started to do work but not as a full time employee, but self-employed.  She will be self-employed for this entire year coming up as well.  When we get the next version of UFile and do our 2014 taxes, will the Self-Employment Business Income option automatically allow for all of her business expense calculations?  Expenses such as:

  • KMs travelled for business
  • Office space
  • Insurance
  • Dues
  • etc...

This will be the first year where we will use UFile for this type of income reporting as in the past she has just hired an accountant to do all of this for her.  We want to ensure htat UFile will allow for her to include everything she is entitled to expense because she is self-employed.

 

Any help would be appreciated!

 

Thank you,

- Christian

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You must include in your tax return all income earned from self-employment. This may be business, professional, commission, farming or fishing income. To enter this amount in the program, please follow the steps below:

 

1- In the "QuikClik Navigator", on the left-hand side of the screen, select "Interview setup".

 

2- On the page that appears on the right, in the ''Income '' section, select the "Self-employment business income" and click "Next".

3- Return to the "QuikClik Navigator", click on "Self-employment income" and select the option that corresponds to your situation on the right-hand side page. For resident of Quebec, if you wish to pay your registration fee for Quebec, you must choose the option ''Q438 - Quebec annual registration fee for the entreprise register'';

4- On the "Business identification" page, enter the name of your business on the line "Business name (or your own name, if the business does not have one)", then enter the other information in the mandatory fields marked with a red asterisk.

5- In the field for "6-digit code from the North American Industry Classification System", enter the code that best describes your industry. If you do not know the code, click on the tool tip (the question mark) (?) on the right-hand side of the box to get it.

6- Subsequently, after identifying your company, a sub-menu will appear in the "QuikClik Navigator" to allow you to enter "Income & expenses", "Motor vehicle expenses", "Home office expenses" and so on.

7 - On the next page ''Income, expenses'' on line ''Gross sales, commissions or fees'' you must enter a value, if you have no income, enter $ 0, 00 as this is a required field;

8 - NOTE; for expenses, if your company is registered for GST and HST (QST), these expenses must be entered before taxes to reflect the ITRs (input tax refund) and ITCs (input tax credit) you claimed

 

 

The program will also generate federal form T2125, as well as Quebec form TP-80 if applicable.

 

Furthermore, we recommend that you read the T4002 guide published by the CRA, for more information on what qualifies as a business expense.

 

For more information, please visit the following link:

 

http://www.cra-arc.gc.ca/E/pub/tg/t4002/

 

For Quebec residents, we suggest that you consult the "Business and Professional Income" guide, published by Revenu Québec. You can visit the following link:

 

http://www.revenuquebec.ca/en/citoyen/impots/rens_comp/particularites/revenus.aspx

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Hi there,

 

I am a self-employed translator and the 100% of my work is made in one of room at home (rental apartment).

Now I want to claim home expenses (rent and hydro) calculated based on CRA's example.

Which item should I put this amount on T2125 - Business page?

In the CRA guide, it's called Line 9945 – Business-use-of-home expenses.

 

Thanks in advance!

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Just found a page of HOME OFFICE EXPENSES so here is where Electricity goes.

 

How about rent expense in home office?

(The work space is used for only translation work, not like as meeting space or something else)

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This is an update after I called CRA.

 

The agent told me the apartment rent expense as business use of home goes to Mortgage interest in the Home Office Expenses section. It's kind of hard to believe but that seems the way it is.  :cool:

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If you want to enter additional expenses that are not listed in the "Home office expenses" page,
such as rent paid, enter the amount in the field "Other home office expenses - specify".
Enter a description and the amount.

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