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deductions_workbook

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									Personal Tax Advisors
Expenses Workbook

Instructions


(1) Detailed instructions and examples for completing this workbook can be found in the Personal
Tax Advisors guide, Everything You Need To Know About Expenses (EYNTK). If you do not
have a copy of this booklet, contact us at info@personaltaxadvisors.ca.


(2) Within these categories, you can itemize some or all of your expenses by listing them by
specific type, or you can lump them. It's a matter of personal preference, depending on how
detailed you want your personal records to be. Your tax return will only list the lump totals,
regardless.

When in doubt, itemize. It's more flexible if you and your Tax Advisor decide to move things
around later.




(3) If you're not sure where an expense goes, list it in the category called Other expenses , and
discuss it with your Tax Advisor


(4) Don't fill in any grey or coloured boxes – they're automatically calculated.

(5) Don't include capital expenses in this chart, by which we mean items you buy for your
business that last for several years. Examples include computers & peripherals, vehicles you
purchased, furniture, and cameras.

Instead, keep a separate list of these items, showing the year of purchase and the cost. We'll
work on them when you're here.



(6) About GST: If you're not registered to collect HST/GST on the fees you charge, or if you're
registered on the 'short method', includeHST/ GST in all expenses. Otherwise, exclude the
HST/GST. The EYNTK guide contains tables to help you exclude the GST from expenses.


(7) E-mail this document to expenses@personaltaxadvisors.ca before your appointment.

(8) Don't panic! This document only looks long and complicated, because we've left lots of
spaces for lots of different types of expenses. You probably won't need all the categories here.

Okay, now you're ready. Click on the 'Expenses' tab below to get started entering your
figures.
                           Everything You Need To Know About Expenses Workbook




Basic Information
                                                              Full name
                                                                     SIN
                                                               Tax Year
                                                      type of business
                                              GST number (if registered)




Advertising Expenses
Can include: ads, business cards, flyers, website maintenance, etc.
                                                                      type amount




                                                                                             $             -




Business tax, fees, licenses, dues, memberships and subscriptions
Include fees for all your professional memberships, registration of business name, etc.

                                                                      type amount




                                                                                             $             -




Delivery, freight and express

…only if you were sending out a product that you sell. Courier charges for documents, headshots, etc. are just
part of Office expenses (below)
                                                                      type amount




                                                                                             $             -




                                                                                   (c) 2006 Personal Tax Advisors
Need help? Contact info@personaltaxadvisors.ca                                                        Page 2 of 7
                           Everything You Need To Know About Expenses Workbook




Insurance


…only on stuff you own for your business (your computer or special wardrobe, for example), or for products
you ship out. Not for house, apartment or contents insurance, even if you work at home -- these go in the
Business-use-of-home section (see below).
                                                                      type amount




                                                                                               $             -




Interest you paid

Includes interest on loans, lines of credit, and credit cards. Don't forget the credit cards! If you're not sure
how much was interest on business expenses and how much was personal, just put the totals here and figure
out a percentage with your Tax Advisor.
                                                                      type amount




                                                                                               $             -




Maintenance and repairs
…of stuff related to your business. Do not include repairs for your home or motor vehicle here. Home and
vehicle expenses will be recorded in their own categories (see below).

                                                                      type amount




                                                                                               $             -



Management and administration fees

Agent's commissions, managers' fees, bank fees (only for business accounts)

                                                                      type amount


                                                                                    (c) 2006 Personal Tax Advisors
Need help? Contact info@personaltaxadvisors.ca                                                         Page 3 of 7
                            Everything You Need To Know About Expenses Workbook




                                                                                                $             -
Meals and entertainment

business meals, beverages, entertainment; includes meals taken while travelling for business/professional
development. Includes tickets to shows, performances, galas, etc. unless they're a kind of research; in that
case, list them under Other expenses , below

                                                                       type amount




                                                                                                $             -
Office expenses
Includes office supplies, postage, courier, etc. Does not include calculators, computers or peripherals,
furniture (known as Capital Items; set those aside and bring your receipts/records to your Tax Advisor).
                                                                       type amount




                                                                                                $             -
Supplies

Stuff you buy and use in the manufacture of a product that you sell; note that office supplies are different and
don't go here (see 'Office expenses ', above)

                                                                       type amount




                                                                                                $             -
Legal accounting and other professional fees
Lawyers', bookkeepers', accountants' and, yes, tax preparers' fees
                                                                       type amount




                                                                                                $             -

Property taxes


                                                                                     (c) 2006 Personal Tax Advisors
Need help? Contact info@personaltaxadvisors.ca                                                          Page 4 of 7
                             Everything You Need To Know About Expenses Workbook



Use this category only if you have a workspace that's not part of your
home. Such so-called business-use-of-home expenses go in their own
category on page 2 of the T2032 Statement of Professional Activities .
                                                                 Address amount



Rent

Use this category only if you have a workspace that's not part of your home. Such so-called business-use-of-
home expenses go in their own category on page 2 of the T2032 Statement of Professional Activities .

                                                                       Address amount



                                                     total property tax and rent                      $              -

Salaries, wages and benefits
…if you paid someone else to help you earn income, who isn't covered under 'professional fees' above. Note
that you can pay a spouse or a child if they do necessary work for your business.

                                                                            type amount




                                                                                                      $              -
Travel




costs incurred while on business and/or professional development trips. Includes plane/bus/train fare,
accommodations, rental car & expenses, public transit while there; Does not include meals (that goes in
Meals and entertainment , above)
                                                                           type amount



                                                                                                      $              -
Telephone and Utilities

Do not include the cost of your local telephone line if it's also your home line. Only include utilities if they're for
a workspace that's not part of your home. Such so-called business-use-of-home expenses go in their own
category (see below).

                                                                           type amount
                                         land line (portion used for business)
                                    long distance (portion used for business)


                                                                                         (c) 2006 Personal Tax Advisors
Need help? Contact info@personaltaxadvisors.ca                                                              Page 5 of 7
                           Everything You Need To Know About Expenses Workbook


                                    cell phone (portion used for business)
                                                           internet access


                                                                                            $            -
Other Expenses

The dumping ground for every business expense that (a) doesn't fit anywhere else or (b) you're not sure
about. Please keep each type of expense separate, because when you consult with your Tax Advisor you may
decide to move them to one of the other categories. Some examples are included to get you started.

                                                                       type amount
                                                  uniforms and costumes
                                                   seminars and courses
                              research materials (books, CDs, DVDs etc.)




                                                                                            $            -

Home and Vehicle
Use this page if you work from home or use your vehicle for business
purposes.


Business-use-of-Home
Enter the expenses related to maintaining your home. Make sure to
include total amounts for the entire dwelling (even if you share costs with a
roommate), for the entire year. When it's time to do your return, you will
take a percentage of the total.
                                                                         type amount
                                                                        Heat
                                                                   Electricity
                                                                   Insurance
                                                                Maintenance
                                                           Mortgage Interest
                                                                          rent
                                                      other (please specify)
                                                      other (please specify)
                                                      other (please specify)
                                                      other (please specify)
                                                                                            $            -


Car Expenses
Use one of the two methods given below. Use the same method for the
entire section.


                                                                                  (c) 2006 Personal Tax Advisors
Need help? Contact info@personaltaxadvisors.ca                                                       Page 6 of 7
                           Everything You Need To Know About Expenses Workbook




Method 1: List only amounts directly related to business travel. You must
have kept all business receipts separate in order to use this method.

Method 2: List total amounts, and take a percentage for business.


      Kilometres driven in the year for business (only required for Method 2)

              Total kilometres driven in the year (only required for Method 2)

                                                                 Fuel and oil
                                                         Interest on car loan
                                                                   Insurance
                                                    License and registration
                                                    Maintenanceand repairs
                                                               Leasing costs
                                                       other (please specify)
                                                       other (please specify)

                                            expenses solely for business
                                                        business parking
                                                                car rental
                                                    other (please specify)
                                                    other (please specify)
                                                                                           $            -




                                                                                 (c) 2006 Personal Tax Advisors
Need help? Contact info@personaltaxadvisors.ca                                                      Page 7 of 7

								
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