No need to stay in the dark and not know what is involved in Corporate Tax Return Preparation. For the Do-It-Yourself types that wants to do their own corporate tax preparation, or for those that just want to know what their accountant does for them, here is a guide on what steps are involved in preparing a tax return for an incorporated business.

In getting started, note that tax return preparation requires you to compile business accounting data. Government forms and accounting Cialis information will need to be provided. You are encouraged to get the necessary documents to follow the steps given here in advance. The forms are available from your local Canada Revenue Agency (CRA) office, or you can download them from the CRA website.

This how to guide is broken into steps as listed in the following.

1. COMPLETE A T2
Go to the Canada Revenue Agency website, where you can download the T2 form. The T2 form requests straight forward questions regarding the corporation, such as your corporation name, your place of business, your business year end and similar basic information.

Note that the T2 form will quantify what is tax payable and what is taxable income by the corporation.

2. GENERATE A BALANCE SHEET
This requires a “Schedule 100 – Balance Sheet Information” form. Get the Balance Sheet form from a Canada Revenue office in person, request it by mail or download it from the CRA website. The Schedule 100 and the T2 are to be completed together.

3. MAKE AN INCOME STATEMENT
This requires completing a “Schedule 125 – Income Statement”. The form is supplied by Canada Revenue Agency, to get a copy, go to a local CRA office, request one by post or download a copy from their website. The Schedule 125 is a corporation’s yearly income statement. It is to be completed along with the T2 form.

4. COMPLETE A SCHEDULE 1
This is a form called a “Schedule 1 – Net Income (Loss) for Income Tax Purposes”. The form is supplied by Canada Revenue Agency, to get a copy, go to a local CRA office, request one by post or download a copy from their website. The “Schedule 1” is the heart of the return preparation, as it calculates your corporation’s net income for income tax purposes. See examples of this as follows:

Net income per financial statements: $X
Add: Non-deductible items (i.e. golf fees, 50% of meals): $X
Subtract: Deductible items (i.e. capital cost allowance):($X)
Net income for income tax purposes: $X

5. COMPLETE A SCHEDULE 8
For incorporated businesses that possess capital assets (e.g. machinery, tools, etc.), this requires a “Schedule 8 – Capital Cost Allowance” form. The form is supplied by Canada Revenue Agency, to get a copy, go to a local CRA office, request one by post or download a copy from their website. For those with capital assets, this form must be completed and submitted with the T2 form.

The Schedule 8 form calculates tax depreciation which can then be recognized as a tax deductible expense for the assets of an incorporated business. The type of capital asset property determines the depreciation percentage that can be applied. For a complete listing of tax depreciation rates go to the CRA website for details.

6. SELECT TAX PREPARATION SOFTWARE
Canadian Chartered Accountants in Mississauga, Brampton, Oakville, Milton, across the Greater Toronto Area or in a city near you, can recommend various software packages that will assist with the preparation of a corporate tax return. The software simplifies much of the Corporate Tax Return Preparation that is to be submitted to Revenue Canada (aka CRA).

There is a variety of software products in the retail marketplace. If you want assistance with selecting a Corporate Tax Return Preparation software package that is most suitable for your business, consult with your Accountant in Mississauga Ontario Canada or find a Chartered Accountant near you.

7. SUBMIT TO REVENUE CANADA
Once the Corporate Tax Return has been completed, submit it to your local Revenue Canada Tax Services Office (TSO). For those in Mississauga Ontario Canada, your local TSO is located at:

5800 Hurontario Street
Mississauga ON L5R 4B4

For a listing of other locations where you can submit your Corporate Tax Return, refer to the offices listed in CRA documentation or visit the CRA website.

The main steps for a Corporate Tax Return Preparation are straightforward as listed here, however completing the submission in a correct manner can be challenging. To be confident that it is done correctly and to ensure it maximizes tax deductions available, it is recommended to find a Chartered Accountant in Mississauga, Toronto, Oakville, Milton, Brampton or in your local city, to achieve optimal results such as not paying any more tax than required and not a penny more.

Author Bio: Learn more about Chartered Accounting services such as: Accountant Mississauga, and Tax Accountant Mississauga, or contact a Chartered Accountant in Ontario Canada near you.

Category: Accounting
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