Entrepreneurship & Small Business

Help with filling out T2 corporate tax return

  • Last Updated:
  • Feb 12th, 2018 8:59 pm
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Member
Dec 3, 2008
264 posts
74 upvotes
Surrey
My accountant wanted $400 for filing a $0 corporate tax return. I just did it myself. So freakin easy...printed the t2 and put all zeros throughout the whole form. I cant believe I even contemplated paying someone to do it but I was inexperienced at the time and didnt know ehat I was doing. I kept the company in case I want to use it for something in the future.
Jr. Member
User avatar
Oct 18, 2009
103 posts
34 upvotes
Toronto, ON
I am in the same boat as OP. I have to fle the t2 short return for the tax years 2008 to 2012. My incorporation was inactive during all this period ( zero dollar income / zero expenses). My question is that due I really need to attach any of the schedules or balance sheet with my return. Because the CRA wepage reads as:


If your corporation is inactive (you answered yes on line 280) and there is no balance sheet or income statement information to report, you do not have to attach these schedules. However, they will be accepted if filed.


The accountant which i asked needs $ 100 for each year to file a inactive T2 return .
Newbie
Jun 6, 2010
12 posts
Mississauga
I am looking for fill able T2 Forms and other schedules
Newbie
Aug 31, 2013
1 posts
Hi everyone,

I received a call from Rev Canada on Wednesday. I filed a short form return for a 1 person corporation. Henry from RevCda said my Schedule 100 didn't balance and did I forget an entry? I asked him what he thought was missing and he said he couldn't tell me. I have until Tuesday to submit a balanced Schedule 100. I have no idea what is wrong with my Schedule 100. I did it the same as last year so apparently last years was wrong and now I am worried that they will audit me. Anyone with experience who can help me with this? I have an online clothing store and can give a credit for goods in exchange for balancing this Schedule. Located in New Westminster but will ship anywhere in Canada. Let me know! Thanks! Helen from eBay storefront Kitsilano Kitty's Closet. kitsilanokittyscloset att yahoo.ca
Deal Addict
Oct 7, 2007
3729 posts
1064 upvotes
HelenS033 wrote:
Sep 1st, 2013 3:43 pm
Hi everyone,

I received a call from Rev Canada on Wednesday. I filed a short form return for a 1 person corporation. Henry from RevCda said my Schedule 100 didn't balance and did I forget an entry? I asked him what he thought was missing and he said he couldn't tell me. I have until Tuesday to submit a balanced Schedule 100. I have no idea what is wrong with my Schedule 100. I did it the same as last year so apparently last years was wrong and now I am worried that they will audit me. Anyone with experience who can help me with this? I have an online clothing store and can give a credit for goods in exchange for balancing this Schedule. Located in New Westminster but will ship anywhere in Canada. Let me know! Thanks! Helen from eBay storefront Kitsilano Kitty's Closet. kitsilanokittyscloset att yahoo.ca
You might try looking at the notes printed right on the Schedule 100 that state what lines must equal each other. You may also want to see if Line 3600 equals Line 3849. If these don't balance, CRA will notice and this could be why they have contacted you.
Newbie
Feb 10, 2014
10 posts
Toronto
Great thread.
I have a question about Amortization, and CCA?

I have a simple case, and I used an accountant for years to file my T2. This year I decided that I do it on my own.
I understand Capital Cost Allowance, and I know how to calculate it. I know the figure that needs to be in Schedule 1 at line 403 (GIFI).

What I don't know what figure to add at GIFI line 8670-"Amortization of tangible assets". That is under expanses and different from CCA.
My accountant usually added a figure there, and I don't know how to calculate it. Any help or pointing to right direction would be great. (My great accountant retired 2 year ago, and I had problems with other accountants ...)
Thanks,
-Ervin
Member
Aug 17, 2011
448 posts
138 upvotes
CALGARY
Ervin, the short answer is as follows:

The Sch 100 amortization expense is whatever amortization figure you have on your company's books for amortization.
The Sch 8 is what you fill out to actually calculate your CCA figure.
The Sch 1 figure is where you "add back" your Sch 100 amortization, and deduct your Sch 8 amortization figure.

Without seeing your actual books it's hard to give you a concrete answer, but that's the mechanics of it anyway.
ervinnn wrote:
Dec 2nd, 2014 4:52 pm
Great thread.
I have a question about Amortization, and CCA?

I have a simple case, and I used an accountant for years to file my T2. This year I decided that I do it on my own.
I understand Capital Cost Allowance, and I know how to calculate it. I know the figure that needs to be in Schedule 1 at line 403 (GIFI).

What I don't know what figure to add at GIFI line 8670-"Amortization of tangible assets". That is under expanses and different from CCA.
My accountant usually added a figure there, and I don't know how to calculate it. Any help or pointing to right direction would be great. (My great accountant retired 2 year ago, and I had problems with other accountants ...)
Thanks,
-Ervin
Newbie
Feb 10, 2014
10 posts
Toronto
Thanks Hansol,
Is that mean that two figure should be the same?
My problem is the two figures are not the same, the figure in the Sch 100 amortization expense and what I add back in Sch 1 are not the same.
What expenses can be used for Sch 100, amortization of tangible assets? Is that not the same what I will add to CCA calculation?
Are the two somehow related? In my company's books I don't have amortization amount. My accountant used to calculate it, based on the Company expenses, I gave him.
Thanks,
Hansol wrote:
Dec 2nd, 2014 5:33 pm
Ervin, the short answer is as follows:

The Sch 100 amortization expense is whatever amortization figure you have on your company's books for amortization.
The Sch 8 is what you fill out to actually calculate your CCA figure.
The Sch 1 figure is where you "add back" your Sch 100 amortization, and deduct your Sch 8 amortization figure.

Without seeing your actual books it's hard to give you a concrete answer, but that's the mechanics of it anyway.
Member
Aug 17, 2008
454 posts
177 upvotes
Quebec
ervinnn wrote:
Dec 2nd, 2014 5:53 pm
Thanks Hansol,
Is that mean that two figure should be the same?
My problem is the two figures are not the same, the figure in the Sch 100 amortization expense and what I add back in Sch 1 are not the same.
What expenses can be used for Sch 100, amortization of tangible assets? Is that not the same what I will add to CCA calculation?
Are the two somehow related? In my company's books I don't have amortization amount. My accountant used to calculate it, based on the Company expenses, I gave him.
Thanks,
no it doesnt have to be the same, in your case since there is no amortization in your books you have nothing to put in 8670-"Amortization of tangible assets"
Newbie
Feb 10, 2014
10 posts
Toronto
sr79 wrote:
Dec 2nd, 2014 11:38 pm
no it doesnt have to be the same, in your case since there is no amortization in your books you have nothing to put in 8670-"Amortization of tangible assets"
I think I figured it out. It does not have to be the same, but they are linked. On Schedule 100, line 8760 figure is an expanse, that is the difference between the last year AA (Accumulated Amortization) and the current year AA. So the Amortization is a cost to you company. BUT the same amount from Sc 100 line 8670 will be copied to Sc 1 under income., so it will be NOT an expense for income tax calculation, because the "Capital Cost Allowance" amount entered in Sc. 1 under deduction line 403, will be used to deduct from your income tax.
OK, I think I understand 80% of it now. I guess Amortization can be higher, but only a sub set of it an "Allowance" can be used for income tax purposes.
Am I close to the truth??
Thanks,
Ervin
Newbie
Jul 15, 2017
1 posts
8670 is not always higher than "Capital Cost Allowance"

I have the same question as you. How to calculate the GIFI code 8670, 1760 1761 1774 1775

Ervin, have you got the idea?

Is there any manual or book describing the detailed method?
ervinnn wrote:
Dec 3rd, 2014 1:22 pm
I think I figured it out. It does not have to be the same, but they are linked. On Schedule 100, line 8760 figure is an expanse, that is the difference between the last year AA (Accumulated Amortization) and the current year AA. So the Amortization is a cost to you company. BUT the same amount from Sc 100 line 8670 will be copied to Sc 1 under income., so it will be NOT an expense for income tax calculation, because the "Capital Cost Allowance" amount entered in Sc. 1 under deduction line 403, will be used to deduct from your income tax.
OK, I think I understand 80% of it now. I guess Amortization can be higher, but only a sub set of it an "Allowance" can be used for income tax purposes.
Am I close to the truth??
Thanks,
Ervin

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