Tax help

4

416 Auto

New member
I have doing the Detail thing for 4 years now(cash business) now i want to go full time so the tax man is going to coming looking...lol)



Does anyone know how far back I can claim?



The reason I want to claim past years is establish some credit and some history.



In order for a business loan or business credit card you need to have 2 years with proof to qualify for them.



I did it on the side for the last years so I did not make alot, so the taxes i would owe from before would be minimal at best.



And in my advertizing I could state I was in business since 1999(ligitamitly)



I live in Toronto Canada so this could be a factor as well.



Thanks alot for any help



................Clint

:nixweiss
 
If you want to go back and declare that income, you can go back as far as you want. But, you will have to pay interest on any tax you didn't pay. Do you have the records of your income and expenses? Since you are in Canada, you didn't have to declare the income if it wasn't much and was basically a hobby. I'm not really sure what kind of can of worms you would open up if you do declare the income for past years. You really might want to talk to a Chartered Accountant who does a lot of small biz income tax.



Of course, if you have kept enough receipts and have enough expenses, you might have a loss for some of those years. Office in home expenses, car expenses, capital cost allowance (depreciation) on any equipment you bought might make it a loss. It probably wouldn't be a good idea to try to declare a loss for a lot of years back. If you have a loss for too many years in a row, CCRA will say there was no expectation of profit and therefore you can't declare the loss.



I would consider getting all those records organized and see exactly what the financial situation of your biz is.



Are you going to need a lot of money to get going full time? Do you have more than one personal credit card? If you aren't going to incorporate, you can just designate a personal credit card "for biz use only". Then you would be able to deduct the interest. Biz credit cards tend to be more expensive (Royal Bank's certainly is). I have one personal credit card that only, ever gets used for biz. I also have a small biz AMEX card, with my company name on it.



P.S. If you haven't got one, buy yourself something to keep track of biz km driven and all car expenses. Be sure to write down your odometer reading for the beginning of the year. If you have more questions, PM me.
 
Thanks a miilion for your help. I have a minivan that I drive day to day, And a pickup truck I use for business only, So I keep track of all my milege, gas, and expesses in a log book. I work as a automotive leasing consultant so i can right off 100% of the truck

If it's a work vehicle so I do and will keep doing that(if I can with a small business????)



Thanks again for your help I reallt appreciate it, it helps alot



i kept perfect records of teh past years. I made $18 000 average per year so I will have to pay some back. I looked it up and here in Canada we can earn up to $7900 as a hobbie and not be taxed. I phoned the tax person who does my taxes now and am going in to see him to straighten this all out.



Thanks again for all your help





>>>>>>>>>>>>>>>>>Clint<<<<<<<<<<<<<<<<<<<<<<<<<
 
The rules for deducting vehicle expenses for a biz are slightly different and a bit more generous than for an employee. Talk to your tax consultant. If you ever drive to the store to buy detailing supplies or visit a client, you would be able to write off part of the expenses for that vehicle too. Of course, with receipts and log.
 
Thanks alot, My new accountant has straightened me out............LOL



Thanks for your help





.............Clint
 
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