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Thread: Small business

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    Expert Forum User The Ultimate London Mom!
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    Default Small business

    I have a question. I have a small business (I don't want to name what it is but its the same kind of deal as epicure, tupperware, etc). Anyways I made approximately $600 for last year, not a lot (I wasn't really doing much with it) and it's defintely not going to push me into the next tax bracket or anything. I do have expenses that would relate to my business (ie/ portion of my house used for business, cell phone, mileage, consumables, etc).

    Normally I do my own taxes there pretty simple straight forward and I like that I don't need to pay an accountant to do simple taxes for me. Obviously if I filed for business I would need to hire someone cause I can only do simple taxes. But really I only made $600.00 even with my expenses I doubt it would do anything for or against me for taxes and well I'd rather not pay an accountant for something that is really redundant.

    So my question is: Will this do anything for my taxes (either for and against)? WIthout my additional $600 I make approximately 32,000 gross.

    Thanks
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    Based on what you've said - no, it won't hurt your bottom tax line.

    Technically you should include the $600 then claim your expenses against it (paper, driving, cell phone costs, home office). My guess is you'd have a net profit of NIL and thus adding it in will be an exercise in paperwork only as it won't change your taxable income. You may even have a slight loss which could help because it would reduce your other employment income but keep in mind you can't use your home office expenses to create a loss.

    Doing a business statement isn't hard -- just plug in your income and the expenses (there are specific lines for each type) and boom you're done. The form is T2125 (I think - the number maybe changed in the last year or so) and you can download a copy from CRA's website.

    Hope that helps

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