The tax for self-employed workers, commission employees and landlords
When you are not a classic employee or have additional income, the tax return is more complex to complete since each case has its own specificities.
In this article, learn everything you need to know about the income tax declaration for self-employed workers, commission employees and landlords thanks to Calcul Concept, an accounting office in Saint-Jérôme, near Mirabel, Laval and Montreal.
As a self-employed worker, you are self-employed without your business being incorporated. This special status, also called self-employed, allows you to benefit from a special regime for your tax return.
You don’t have to provide the traditional T4 slip, but you must carefully note all your income and expenses. To do this, you can attach a copy of your financial statements, or the TP-80 form to your income tax return.
Be careful not to forget any fees and do not hesitate to write down any deductions to which you are entitled. These may include expenses related to transportation, office supplies, advertising, company meals and office expenses. For the latter case, you can enter anything related to mortgage interest or rent, property tax, home insurance and energy bills.
An employee in a company, the commission employee differs from a traditional employee because he receives a percentage of the sales he makes. This percentage is called commission and may or may not be in addition to base salary. This often concerns sellers and real estate agents.
Under certain conditions, the commission employee can benefit from deductions through his income statement. All he has to do is list his expenses and attach them to his return using form TP-59.
For a commission employee, the expenses eligible for tax deductions are the costs of accommodation, the purchase of work materials, advertising and travel. The only restriction is that the sum of all these deductions must not exceed the number of commissions earned during the year.
If you own real estate and profit from it by renting it out, you need to report your rental income when you file your tax return. It can be the rental of a complete or partial property, so as well a condo as a house or a room.
To declare your rental income, you must complete TP-128 form for each property that you rent. In it, you consolidate your rental income and expenses.
As some rental expenses are deductible, it is important to note them all. It is considered that these expenses can be divided into two kinds: current expenses and capital expenses. The former is generally regular, such as painting the walls, while the latter are more ad hoc, such as repairing a roof.
Also note that you must provide a RL 31 slip to all your tenants and that in the event of work on your property, you must complete form TP-1086 R 23 12.
Do you need help with your tax return? Simplify your life by hiring an accountant!
If you are in Saint-Jérôme, near Laval, Mirabel and Montreal, choose our accounting firm Calcul Concept. We guarantee you fast and exemplary service for your income tax return. Contact us today at (450) 712-2300 or by filling out the form on our contact page.