The following is post from Lior Zehtser, CPA, CA, partner and co-founder of ConnectCPA, Chartered Accountants – a virtual accounting firm that leverages technology to bring simpleness to the lives of business owners. You won’t find many Chartered Accountants who felt the need to study another discipline after all was said and finished with their articling and studies.
Getting through the Canadian Chartered Accounting examinations is a thorough process and looking at another textbook and learning for another exam is probably the very last thing an accountant would want to do. Thinking back to it, I don’t know why I proceeded to go for it, but my passion for real property led me down the true Estate Agent path and I’m happy it do. As being a designated Chartered Accountant in Licensed and Canada Real Estate Agent in Ontario, I have a unique perspective when it comes to tax write-offs and deductions for Realtors, since I prepare my own taxes for my PROPERTY activities.
- DAY CARE
- What will be the two objectives of Accounting Standards
- 7 years ago from Hermosa Beach
- Research conducted within an actual business is
- Check client references
It’s not often your accountant has similar experiences to you, which is why our AGENT clientele tends to double every tax season. But enough about me…let’s reach the key reason why you’re here: You intend to keep the Canada Revenue Agency (CRA) outta your storage compartments and bank-account. You are able to do so by pursuing some of the tips the following. Meet with an accounting professional right before you start your Real Estate career so that you know very well what to consider.
Should you keep receipts? Most of your questions can be responded to in a one hour consultation. Stay arranged. This seems such as a simple task, every year I meet with many Real Estate Agents and Brokers who are missing documents yet, can’t tally all their expenditures confidently, and have trouble providing proof their claims.
Create something – whether it’s a monthly/quarterly exercise to split up your various expenditures into different categories (envelopes, folders, etc.) or inputting the info into a spreadsheet. The more you upfront do, the easier it’ll be at year-end. Think about tracking your expenses with an internet tool such as Wave Accounting, Xero Online Accounting Software , or Freshbooks – ask us how! In addition to helping you save time during taxes season, if you are ever chosen for an audit, the CRA agent may be impressed with how you were able to provide you with the requested documents quickly, which may play into the favour. Don’t overlook the GST/HST you collected – this doesn’t belong to you!
It would be advisable to tuck away all of the GST/HST you gather on each percentage cheque to make sure you have enough money to remit to the CRA at tax time. If you owe less GST/HST by the end of the entire year, then consider the remaining GST/HST not remitted to the CRA as a bonus. What I see a lot are brokers spending the GST/HST they collected over summer and winter leading to plenty of interest and charges charges because they end up paying past due.