This year get your 2013 taxes filed on time!

Tuesday, March 5th, 2013 at 10:04 am

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This winter has been pretty harsh so far. Since you can’t get outdoors much, now is a really good time to start getting your tax paperwork in order.

Tax tip: Make sure you file your tax return on time even if you cannot pay the taxes owing. CRA will levy a punitive penalty for late filing and this penalty attracts daily interest charges

If you are a sole proprietor, organize your paperwork by month and by expense type; add up the total for each expense for the year making sure to separate out the HST paid. Create a spreadsheet (using Excel or pencil and paper)of your home expenses – categories down the side (heat, hydro, mortgage interest,property taxes, insurance, R&M,water, telephone) and months along the top. Total the columns and the rows. Create a spreadsheet of personal deductions such as medical(show information for each medical practitioner and for each family member). Add up all your invoices for the year making sure to separate out the HST collected. Make an appointment with your accountant to figure ahead of time what your tax bill is going to be – you have three months to save the money you will need to pay your taxes.