Apr 21, 2018
Almost done
I sat at the table from 10:00AM until just now, 7:30PM.
I am about 98% finished. Quite confident that it will all be sent by courier on Monday to our accountant in Vancouver. I save at least $4000.00 by pre doing as much as I can including balancing the entire year. Colin meanwhile cleaned the entire house on his own and even brought a load over to the RV and picked up my spices. He also put away everything from the three loads of laundry I found time to do today and remade our bed on his own. Grazie mille mi amor. Now time for a quick soak in the tub and then dinner. We’ll be dining sometime between 8:30PM and 9:00PM. I do believe we will be opening a nice bottle of red. Dang I forgot to pull out the veggie ground round from the freezer 🙁 Microwave to the rescue.
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Nice to get that paper work out of the way, and taxes all wrapped up for another year.
The taxes might be done but there is still a lot of other desk work to catch up on.
I do our books just like you – and it still costs us $2800 a year for the accountant….but we are a Canadian Corporation and it is worth it. I do our personal taxes though, even with dividends and writeoffs the $50 paid version of Turbotax works well. Congrats on nearing completion – it’s a big relief when done
I save $4,000.00 but I still pay another $3,800.00 for the corporate taxes. However he does our personal taxes for only $250.00 each as what we pay is based on the company taxes. Our aim is to pay as little tax period in any given year and we do get pretty close to that. Our account is very creative with numbers.
Contessa, I know absolutely nothing about Canadian income tax laws, but it sounds like you and Colin pay each of you a salary out of company proceeds before company taxes. Since we are now 100 percent retired (living off of company and government pensions and dividends/interest), but during our working life have deferred paying income taxes on any hunks of our income which went into our 401Ks, it is now time to pay the piper since (by law) we are now mandated to start making withdrawals from the 401Ks at 70-1/2 years of age. In addition, any inherited real estate we sell, we have to pay income tax on any profit we make on the sale with the basis being the value of the property appraised at the time of our relative’s death. My point is, like most people, we defer paying taxes as long as we can without being penalized. Therefore, for tax year 2018, because of the new tax laws in the US, we have taken the mandated draws in 2018 (one delayed draw from 2017 with a legal extension and, of course, the draw for 2018). So now we have to figure out how to delay or reduce the payment of taxes on the profit from the sale of land so that the taxes can be spread over a few years. Our accountant is working on that, and he is worth every penny we pay him.
We have to pay personal tax on the money that we take out of the company. We have to pay corporate/federal taxes on the amount of money we make within the company. Our company is incorporated which means that it is its own entity. The more money we make the more tax we pay type of thing. However the company tax rate is less than the personal tax based on Canadian law. We agree with you on accountants. We think our guy is worth his weight in gold. Good luck with it all.
“… the company tax rate is less than the personal tax based on Canadian law.” It is quite the opposite in the US based on a comparison between personal taxes of the average US family and a US corporation. However, under the new US tax laws, the corporate tax has been reduced to 25 percent (historically, it has been 35 percent). But, I can’t believe the legislation passed Congress to reduce both personal and corporate taxes as the US has a 9 trillion dollar national debt. It had to be entirely politically inspired for the next election. I know, I know; I shouldn’t be complaining! I was brought up to believe you shouldn’t spend money you don’t have.
I know the feeling with the wine. Croft shared a $300 bottle of single malt scotch. That was a once in a lifetime event.