Yes, your taxes are due again.
If you are speaking with your parents about their taxes politely probe a little more to see if they need help. They are not always forthcoming about asking or accepting of help. You might find these situations are more easily discussed when downsizing and moving matters arise.
I find older adults don’t share their finances easily. They come from a generation where they didn’t share how much they earned, how much their home cost or anything else for that matter. And I respect that. However, you need to ensure that they are being taken care of by financial advisors whom are trustworthy and competent.
Some do not want to ask for help and just feel it’s okay if they don’t file their taxes. Or they simply might forget. They might get behind…and this can happen to anyone of us. Life can be overwhelming. Most of us put off what we feel is less important today to take care of more pressing matters.
I have yet again another client and this one a senior who thought that all her taxes including her husbands were in order. The gentleman told me that his taxes for his incorporation were complete including 2015. They were not. He retired from his practice, closed his office and thought that everything had been wrapped up by his accountant. In March this past year he passed away leaving his wife with past personal taxes from 2012-2016 to pay plus his business taxes for 2015. The incorporation was not even closed. Just more overwhelm for his dear wife who is dealing with losing her husband at just the age of 65.
And, there are interest and penalties that
Revenue Canada has added to the bill.
I work with my clients closely to build a trusting relationship to get all their papers sorted and ready for the accountant to deal with. All my clients who do not have an accountant or require a change are introduced to my accountant whom my husband and I have used for the past 10 years.
Whether you hire someone to prepare your tax documents or attempt to complete them yourself, your papers must be in order.
And organizing your tax related documents is not just some hap-hazard thing you do the evening of April 30th.
Good tax organization is a year-round process.
Yes, you can wait until June 15th for the final deadline to file. Your taxes in Canada are officially due by midnight on April 30th PERIOD. Consequently if late you will pay penalty fees in addition to interest.
Personal taxes are often straight forward and fairly simple but if you’re a business owner you might require a little more help.
Follow these 7 Steps to get past taxes out of your office.
- What records will I need to deal with. Your list will likely include expenses – insurance, travel including, gas and parking receipts, car maintenance, business phone, cellular phone, internet, license(s) and registration fees, advertising, accounting, income slips, investments – RRSP, GIC’s and so forth. If you have a home-based business you can claim a portion of your mortgage, property tax, gas and hydro.
Ask your Tax Specialist for details
for your Taxes
or visit Revenue Canada
- Create file folders or large (8 x 10 inch) envelopes to organize your taxes using the above examples as suggestions along with the year i.e. Car Maintenance 2015. Place inside all your receipts for oil changes, tire rotations, tune-ups, etc.
- Sort all the records, expenses, income slips, etc. into their appropriate file or envelope.
- Get a banker’s box. Label it Taxes 2017. Insert hanging folders into the box. (A standard sized box holds either letter or legal sized hangers). Use File Tabs to create categories i.e. Insurance, Advertising, etc.
- Place all the file folders or envelopes into their appropriate hanger.
- Take the box to your accountant.
- And finally, upon completion and filing of your tax documents – add your 2017 tax return along with all your eligible business receipts and expenses and store the box in a safe, dry place for the next 7 years.