Personal Tax Preparation

Sales invoices, purchase receipts, cash tickets, fuel tickets, bank statements, credit card statements, contracts, debits, receipts, transfer records, collection conversations, electronic receipts for online purchases, signatures... And so on, any business-related figures that are included in the tax form must be confirmed by a written record. Preferably the original, no copy of the original, even if it is a receipt, a frame of photos, scanned images, dialogue screenshots have to be kept. Because this will be the important credentials you rely on when dealing with CRA audits.

The tax code requires the above to be retained for 6 years for spot checks. If you have to destroy it within 6 years, you can apply with the CRA using T137 Request For Destruction of Books and Records.

 CRA audits are sure to require a look at the dashcam, which is called business travel log or mileage log. The dashcam doesn't refer to the black box in the car, it's the video you record while driving. The CRA looks at how many miles the business has run, and what percentage of the total mileage these businesses are for the year, thus determining whether the self-employed person's declared fare is reasonable. 

A qualified mileage record should include at least:

• On January 1st, write down the car's odometer reading, which is the starting point of the new year;
• Date, place of departure, destination, purpose of the itinerary (must be business-related), number of kilometers between two points;
• Write down the above points every time you leave, and get into the habit like wearing a seat belt, from January 1st to December 31st;
• On December 31st, write down the car's odometer reading, which is the end of the year;

 With the number of business kilometers per year / the total number of kilometers traveled throughout the year - business cars. 

Fares include:

• Electricity, insurance, license plate registration, maintenance, rental of a car, interest expenses on the car, parking fee, 407 toll, depreciation of the car, etc.

Let's see if several hard conditions are met:

• Circle a small area of the home dedicated to office, meet customers, talk business - dedicated to the area - room or rooms - used in a business and for no other purpose;
• This area must be the main source of business, is where you usually talk to customers - principal place of business;
• The area must also be on a regular and continuous basis normally, regularly, continuously, and used as a business. For example, a masseuse who serves guests at home, on average 5 people a day, 5 days a week, is to meet this. On average, a real estate agent meets clients at home only once or twice a week to talk about the property trend.

If all of the above is satisfied, the following costs can be deducted according to the area of the area as a proportion of the entire house:

• Electricity, gas, home insurance, maintenance and maintenance (only for home office room maintenance), interest on mortgage, land tax.

 The Inland Revenue Department has no hard and no hard rules on the number and amount of gifts, as long as they are reasonable. Reason is a wise thing. The trade-off is simple: role-playing treats itself as a CRA auditor, thinking about this type of business, making so much money a year, giving a gift to a client or prospect, whether it's justified, whether it's worth it. Gifts have no hard-to-explain personal element. 

 Travel expenses are insolvent if the primary purpose of the trip is "for personal gain". However, later to participate in business-related trade fairs, business negotiations and other spending and industry-related, can be offset. Be careful to retain evidence of attendance at the show to explain the necessity. 

 Personal expenses such as suits, professional wear, custom fees, bags, dry cleaning fees, beauty salon fees, etc. are not deductible. 

 销售发票、购货收据、现金小票、加油票、银行对账单、信用卡对账单、合同、借条、收条、转账记录、催款对话、网购的电子收据、签字…等等，任何跟生意相关的、填在税表里的数字，必须保留书面记录来证实。最好是原件，没原件的留复印件，哪怕是一张收条、一帧照片、扫描图像、对话截屏都得留着。因为这将是你应对CRA审计时依赖的重要凭证。 

 税法要求以上保留6年，以备抽查。  若你非得在6年内销毁，可用 T137 Request For Destruction of Books and Records 跟CRA申请。 

 CRA审计一定会要求看行车记录，这叫 business travel log 或 mileage log。行车记录不是指车子上的黑匣子，那是你记录行驶过程中的影像资料的。CRA要看的是为了生意跑了多少里程，这些生意里程占全年总里程的百分比是啥，由此判定自雇人士申报的车费是不是合理。 

一本合格的行车里程记录至少应包括：

• 1月1日，记下车子的 odometre reading，这是新一年的起点；
• 日期、出发地、目的地、行程目的（必须和生意相关）、两点之间的公里数；
• 每次出发都把上面几点记下来，就像系安全带一样养成习惯，从1月1日记到12月31日；
• 12月31日，记下车子的 odemetre reading，这是一年的终点；

 用全年生意公里数/全年行车总公里数 = 生意用车%。 

车费包括：

• 汽油费/电车的电费、保险、车牌注册费、维修保养、租车lease费、或finance的车子的利息支出、停车费、407 toll、车子折旧等。

先看是否满足几个硬性条件：

• 家中圈出一小块区域，专门用来办公、见客户、谈生意 – 专区专用 – room or rooms – used in a business and for no other purpose；
• 该区域必须是生意的主要发源地，是你平时跟客户谈事儿的地方 – principal place of business;
• 该区还必须是 on a regular and continuous basis 正常地、定期地、持续地、用作经营生意。比如，一个按摩师在家服务客人，平均每天按5人，一周5天，算满足这条。一个地产经纪平均一周只在家中会见一两次客户谈谈地产大趋势是不行的。

如果上面全部都满足，按照这个区域的面积占整个房子的比例，可以抵减下列费用：

• 电费、气费、房屋保险、维修维护（只对home office这个房间的维修）、房贷的利息部分、地税。

 税务局对送礼的数量和金额没有硬性规定，只要符合情理。情理呢是个见仁见智的东西。权衡的方式很简单，角色扮演把自己当作CRA的审计人员，思考一下这种类型的生意，一年就赚这么多，送客户或潜在客户某种礼物，情理上是否合适，价值上是否说得过去。礼物有没有难以解释的personal element 。 

 旅行的首要目的若是“因私”，差旅费不可抵。但是后期参加跟生意有关的展销会，生意商谈等的花销和行业相关，可抵 。 注意保留出席展会的证据来解释必要性。 

 个人平日的穿着打扮的花销属 personal expense，比如西装、职业装、定制费、包包、干洗费、美容美发费等，不能抵扣。