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Home My WebLink AboutThe Citizen, 2008-02-07, Page 11(NC)—Accounting for business income definition: the accrual method of accounting. Generally self-employed taxpayers must declare income in the time period in which it is earned. Two exceptions are farmers and fishers. Likewise, expenses incurred to earn business income or revenue must be matched in the same period. This is known as the accrual method of accounting. Types of self-employment expenses The Canada Revenue Agency indicates that it is perfectly legitimate for self-employed individuals to deduct all expenses incurred in the conduct of their business, provided those expenses meet the following criteria: 1. They are undertaken for the express purposes of earning income. 2. They are reasonable under the circumstances, and not limited or prohibited by certain rules or regulations established with respect to specific expenses. It is important to document all expenses related to running your business. Following are examples of legitimate business expenses for tax purposes (all or in part). Running your business: • salaries and amounts paid “in kind” • accounting and legal • advertising and marketing • equipment rental • insurance (fire, theft, liability) • business-related start-up costs • delivery and freight • interest and bank charges • light, heat and water • maintenance and repairs (other than for passenger motor vehicles) • home office expenses (including postage, stationery, telephone and other supplies) • business taxes, fees and dues • property taxes or rent on business property • representation costs to obtain a business-related license, permit, franchise or trademark • bad debts/collections (related to bad debts, etc.) • motor vehicle expenses (such as fuel, insurance and repairs) • travelling expenses (limitations apply to motor vehicles) Professional development: • business-related memberships and subscriptions • specific courses taken to improve business skills • convention expenses (up to two a year) • meals and entertainment expenses Refer to the 2007-08 Personal Tax Planning to determine whether these expenses can be deducted in whole or in part. The entire booklet is available online (in either a searchable format or a PDF file for downloading) at www.cga-ontario.org. THE CITIZEN, THURSDAY, FEBRUARY 7, 2008. PAGE 11. By Brenda M. LeongIt’s hard to imagine, but exposure to investment fraud is a common occurrence in the lives of many Canadians. In fact: • Aside from email spam, one-in- five Canadians (20 per cent) has been approached with an investment fraud in the past three years • Two-in-five Canadians (41 per cent) have been approached with a fraudulent investment opportunity at some point in their lives • One-in-20 Canadians has actually put money into a fraudulent investment at some point in their lives These findings, from a recent study on investment fraud by the Canadian Securities Administrators,suggest that we all need to learn how to protect ourselves from unscrupulous characters who make a living defrauding trusting investors. For seniors and pre-retirees, who have less time to recover from an investment gone wrong, the need to learn self-protection is especially important. Here’s a quiz to help you find out if you could become a victim of investment fraud. Answer each question honestly, then add up your score to find out your level of vulnerability. How do you feel about your current financial situation? Dissatisfied (0) Neutral (1) Fully satisfied (2)Not sure (0) Do you have financial goals? (Select all that apply) Short-term—less than 1 year (1) Mid-term—1 to 5 years (1) Long-term—more than 5 years (1) No specific financial goals (0) How involved are you in your financial affairs? Not involved (0) Moderately involved (1) Very involved (2) What do you look for in a financial adviser? (Select all that apply) Gender (0) Age (0) Appearance (0) Affiliations (2) Credentials (2) Compatibility (0)How do you make investment decisions? (Select all that apply) Tip from someone you know (0) Investment’s past performance (0) Detailed written material (2) Suitability to my situation (1) I let my broker/spouse/other decide for me (0) What the quiz says about you: The highest score possible is 14. If you scored 10 or above: you are less likely than most to become a victim of fraud. You have goals and realistic expectations, and you aren’t sidetracked by external influences. If you scored between six and nine : you are at some risk of making investment decisions that could go wrong. You might buy into an investment that’s not right for you,or choose a financial adviser for the wrong reasons. If you scored five points or less: a fraud artist would love to meet you. You are likely too trusting of others and don’t ask enough questions. You may also place more importance on your rapport with people than on their credentials. Maximize legitimate expense deductions when self-employed Are you vulnerable to investment fraud? 9 Rattenbury St. E., Clinton, ON N0M 1L0 Ph.: 519-482-9924 ~ 1-888-235-9260 Res.: 519-524-9260 Check out RRSP and RRIF plans designed to meet your needs. GIC, Mutual Funds, LSIF, Seg. Funds Invest in your future today! RRSP DEADLINE: FEBRUARY 29, 2008 Who will look after your financial obligations if you become injured or ill? See Lawrence for a free consultation. Jeff Bloemberg,Investment Funds Advisor We can advise you on RRSPs,RESPs,GICs,Pension Rollovers, Estate Planning,Mutual Fund Investing and Tax Planning Mutual funds provided through FundEX Investments Inc. 152 Josephine St.,Box 849 Wingham,ON N0G 2W0 Tel: 519-357-4554 1-888-349-4447 Cell: 519-525-5108 Fax 519-357-2879 Email: steward.jeff@bellnet.caJACQUIE GOWING ACCOUNTING SERVICE Accounting & Income Tax Preparation Monthly Bookkeeping Tailored To “YOUR” Needs • Reconciliations • Personal, Farm • Government Remittances Business & Corporate • Payroll • Electronic Tax Filing All services available on site or at our office RR 2 Bluevale 519-887-9248 Fax 519-887-9454 ACCOUNTING & INCOME TAX SERVICES COMPUTER SALES & INSTALLATIONS Ralph Watson 810 Turnberry St., Brussels, ON N0G 1H0 BBBB uuuu ssss ....:::: 5555 1111 9999 ----8888 8888 7777 ----6666 0000 1111 1111 RRRR eeee ssss ....:::: 5555 1111 9999 ----8888 8888 7777 ----9999 2222 3333 1111 SSSS UUUU NNNN SSSS HHHH IIII NNNN EEEE CCCC OOOO UUUU NNNN TTTT RRRRYYYY CCCC OOOO NNNN SSSS UUUU LLLLTTTT IIII NNNN GGGG INCOME TAX SERVICE $$ • farm, business, or personal • complete year-round service including tax audit representation • E-File available Over 20 years' experience Quality work at reasonable rates "FREE CONSULTATION" Stephen Thompson R.R. #2, Clinton Home # 519-482-3244 Cell # 519-524-0957 One Stop Bookkeeping & Income Tax Services Glenda Morrison, CIM Personal Tax Return Preparation & Bookkeeping Services New clients always welcome 81 Alfred St., Brussels 519-887-8642 E-Filing Available E-Filing Available Reasonable Rates