Basic Fee per return is $95 cash or cheque. Fees are not only for the preparation of tax returns but also as a retainer allowing clients to request tax advice during the following year.
Preparing a tax return for a new client requires more time then for an existing one. My basic fee assumes the preparation of a tax return for a new client. Since less time is required for an existing client, I pass on the savings by applying a $45 loyalty discount.
Demand for completion of tax returns increases dramatically during the month of April. My basic fee assumes the client will request their return be completed during this busy period. If I receive your complete tax information before April 1st, then I apply an additional discount of $5.
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T1 - Individuals
Basic fee less discounts as described above. Most returns would qualify for the basic fee. Some exceptions are returns containing investment income, capital gains, educational credits, moving expenses or commission income. For these exceptions, a modest fee is applied.
If a client's tax information is made up of many unrelated documents, disorganized and/or contains copious transactions for a single tax credit all of which requires additional accounting time; then additional fees are applied. An example is multiple receipts for medical expenses. If a single tax credit is supported by more than four receipts; they should be summarized. The summarized total is used in the tax return.
If concerned, give me a description of your tax information and I will provide a guaranteed maximum fee for the preparation of your return. Fees for the majority of my clients is approximately $60 including HST. Fees for many who provide complete tax information by April 1st is only $45, including HST.
T1 - Rental Income
My fee for tax returns containing rental income starts at $30 and increases as the complexity of the rental business increases. This is in addition to the individual fee described above.
Rental income is income you earn from renting property that you own or have use of. You can own property by yourself or with someone else. Rental income includes income from renting a house, apartments, rooms, space in an office building, or other real or movable property.
You should determine if your rental income is from property or a business. In most cases, you are earning income from property if you rent space and provide basic services only. Basic services include heat, light, parking, and laundry facilities.
If you provide additional services to tenants, such as cleaning, security, and meals, you may be carrying on a business. The more services you provide, the greater the chance that your rental operation is a business.
Listing of expenses that offset rental income:
- Office Expenses
- Legal, accounting, and other professional fees
- Management and administration fees
- Maintenance and repairs
- Salaries, wages and benefits
- Property taxes
T1 - Commissions
My fee for tax returns containing commission income starts at $30 and increases as the complexity of the commission arrangements increases. This is in addition to the individual fee described above.
You may claim deductions against your commission income for expenses such as traveling, entertainment, salary to assistants, supplies, telephone calls, automobile, and home office. To deduct the expenses, your employer must complete Form T2200, Declaration of Conditions of Employment. The deductions are claimed on Form T777, Statement of Employment Expenses. The allowable expenses will be shown on line 229 to calculate net income line 236.
T1 - Home or Small Business
My fee for tax returns containing business income starts at $60 and increases as the complexity of the business increases. This is in addition to the individual fee described above.
Canada Revenue Agency (CRA) defines a business as an activity where there is a reasonable expectation of profit and there is evidence to support that intention. So, you are allowed to deduct business expenses as long as you have, in the long term, sufficient revenue to cover your costs. Business or professional income and expenses are generally reported on form T2125. If you have multiple businesses or professional activities, you are required to file a separate form for each. Appropriate books of account are required for all businesses.
You are allowed to deduct all expenses incurred to generate income. However, dependent upon the expense type, it could be deducted against current income or differed to be deducted against future income.
T2 & T3 - Corporate and Trust Returns
Being a one person office, I will accept only small and/or uncomplicated corporate or trust returns. However, if I feel adequate service is not being provided, I will encourage, and assist, switching to another firm. If required, an affiliated, local accounting firm is available for discussions.