Entrepreneurship & Small Business

Help with filling out T2 corporate tax return

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  • Dec 3rd, 2014 1:22 pm
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Newbie
Jul 12, 2006
6 posts

Help with filling out T2 corporate tax return

I've registered a couple corporations that I haven't done anything with, but need to file the T2 tax form for the past few years. Does anyone know where I can find some info on how to properly fill out this form (gov site - instruction manual wasn't any help!), or is there anyone that can help me file for a reasonable charge. Every account I've contacted is asking for $400-600 to complete the forms.

Thanks in advance,
JB
28 replies
[OP]
Newbie
Jul 12, 2006
6 posts
I wasn't aware that there was so much involved... and it would take that long to files just zeros. Thanks for your post, as it helps put some prospective on what's involed, for me.

Would you advise someone with no prior experience to use turbo tax or would you suggest that I find an accountant?

Thanks again,
Deal Addict
Feb 5, 2009
2051 posts
263 upvotes
Newmarket
The price you got quoted is fantastic.

Your problem isn't how to learn to fill out T2 paper work, your real issue is to get your affairs organized and start having everything filed on time and properly too boot, the fees you spend on accounting will be nothing in comparison to penatlies you eventually will be paying (not to mention CRA being on your back, perhaps freezing your bank accounts and general stress of being few years late with everyting).

I recently got contacted by a person who likes to save money on accounting, never filed T2, sales tax, since incorporating few years back, now that CRA is on his back he wants everything done right away, in the meantime they froze his bank accounts when he was in Asia, and have already asessed him corp and sales tax returns that are way higher than my original estimate, add to that few hundred thousands of shareholder debit balance and you get one individual who likes to save on accounting fees, and the penatlies will excceed many times what he would have paid for services if they were done on time and properly on timely basis.
Member
User avatar
May 31, 2002
392 posts
9 upvotes
Oakville, ON
Seconding what guys said above, it's easy to do, many zeros. You can do it. Download the forms, print them and start filling zeros.
Deal Addict
Feb 5, 2009
2051 posts
263 upvotes
Newmarket
matkokubko wrote:
Dec 30th, 2010 11:25 am
Seconding what guys said above, it's easy to do, many zeros. You can do it. Download the forms, print them and start filling zeros.
Are you sure you read and understood what was said above? ;-) (unless there is a bit of sarcasm in your post that I missed ;-)
Member
Dec 21, 2005
473 posts
15 upvotes
much of the information in this thread is quite useful; thanks everyone!

i started my brand new corporation in June 2010 (it's only me, no other employees and just me working from home) and will likely file my first ever T2 return next year.
Newbie
Oct 20, 2009
29 posts
Maybe I should start a new thread, but what does anybody know where I can find a sample filled-out complete T2 form for a non-complicated corporation?

I've been running my business as a sole proprietorship for the last 2 years (IT consulting with only a couple of clients), but have now also incorporated. As a sole proprietorship filing taxes (and deducting expenses, submitting GST/HST, etc) has been relatively simple and I've been able to do it myself.

I still want to be believe that I should be able to fill out my own T2 (I say to myself "why should it be that much different now that its a corporation?"), but by reading posts by RobberBarron and others, looking at the (very confusing on first read) CRA T2 guide, or trying to figure out how I now need to handle "workplace at the home" expenses, I understand that it really may not be so simple anymore.

I think if I saw a sample filled-out complete T2 form for a similar corporation, I would get a better sense on what the corporation complications really are, and whether this is something I want to invest the time/effort in doing myself, or that its something that truly is best left to a professional accountant ..... so far I haven't had any luck searching the internet for a sample filled-out T2 form.
Deal Guru
User avatar
Nov 18, 2005
10042 posts
1608 upvotes
Kingston
RobberBarron wrote:
Dec 29th, 2010 5:46 pm
If it really IS a zero-earning corporation with no costs/expenses, just remember to include the incorporation fees as a loan to the corporation. That way, whenever the corporation DOES make any money down the road, at least you'll be able to pull out the money you spent to incorporate the company which came out of your own pocket to the corporation (as a loan!)

Just to give you a bit of insight, for a corporation with no revenue/expenses, you'll likely need to complete:
* T2 Short Return (2 page tax return)
* Schedule 1S (Net Income)
* Schedule 8 (Capital Cost Allowance)
* Schedule 50 (Shareholder Information)
* Schedule 100 (Balance Sheet)
* Schedule 125 (Income Statement Information)
and * Schedule 141 (Notes/Checklist)

you might also need to complete Schedules 9 and/or 23 if the other corporations are related CCPC corporations.

Just follow the CRA's website and you should be fine----its just a bunch of zeros after all!!!! :)

Great advice. Here is a link to the T2 Short. The other forms can be found here.

If the company isn't active it is pretty simple. If you have income, Corporate returns are a lot more complicated.
Newbie
Jan 3, 2011
2 posts
dorchester
emacs wrote:
Dec 30th, 2010 4:08 pm
much of the information in this thread is quite useful; thanks everyone!

i started my brand new corporation in June 2010 (it's only me, no other employees and just me working from home) and will likely file my first ever T2 return next year.

Many people when filling out a corporate tax return try deducting expenses that are actually ineligible or actually attract taxable benefits to the shareholder under 15(1). 400-600 is a good price...if inactive perhaps as low as 250 providing everything is clean and it truly is inactive. If your not going to use a corporation, dissolve it or get rid of it, there are accountants out there who will take it off your hands just to have one handy.

Hey, I can do my own plumbing, my own electrical and drywalling, and I am good at it..but when it gets held up to a pro, I am not great. Do what you do and do it well, but truly my advice is leave it to those who specialize in what they are doing. by the way, compilation engagements (Notice to Reader) do not require chartered accountants, certified general accountants or certified management accountants to complete the work. There are many non-designated individuals/companies out there who do a great job without you paying through the nose so do your homework.
Member
Dec 21, 2005
473 posts
15 upvotes
blais40 wrote:
Jan 5th, 2011 12:00 am
Many people when filling out a corporate tax return try deducting expenses that are actually ineligible or actually attract taxable benefits ...
i'm not and have never been under the illusion that my deductions are all eligable. i won't be treating corporate tax filings as a trivial matter either.
Member
Feb 2, 2009
492 posts
37 upvotes
Kanata
Why not spend couple of hundred bucks to buy the Corporate Quicktax (Turbotax now?) and do it yourself? Once you do the first one, the rest should be much easier.
Deal Guru
User avatar
Nov 18, 2005
10042 posts
1608 upvotes
Kingston
jodyb wrote:
Dec 29th, 2010 12:45 pm
I've registered a couple corporations that I haven't done anything with, but need to file the T2 tax form for the past few years.

I think you guys have to re-read the OP (see above). He just registered the corporations and nothing has happened.
There aren't any accounting records to get together. There are no assets, liabilities, revenues or expenses. Balance sheet = $0. Income statement =$0.
Newbie
Feb 22, 2011
1 posts
Alberta
Also looking to fill out a T2 short form. The company I have was inactive this year (no income). The only thing that was deducted was 1)accountant fees for filing taxes last year, and 2)Bank fees.
Any one know where/how to deduct these?
Everything else is zero's. I want to fill it out myself as there is no money left for this business, then dissolve it.
Thanks
Deal Guru
User avatar
Nov 18, 2005
10042 posts
1608 upvotes
Kingston
You don't need to show your deductions just the net income. Your net loss goes in the first line of Schedule 1 S. Assuming you have no other adjustments, your net loss will go in row 300 of the T2 Short.
Newbie
Feb 28, 2013
1 posts
How about a small Incorporation with no activities and no revenue? Where should the "Zeros" be inserted in the T2 Short Form? Please advise, thanks.
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