Personal Finance

Best software tool for doing your own corporate tax return

  • Last Updated:
  • Jan 31st, 2023 1:21 pm
[OP]
Deal Fanatic
Mar 21, 2013
5075 posts
8413 upvotes
Canada

Best software tool for doing your own corporate tax return

I've historically had an accountant for my pretty simple AB corporation that is just for realtor work. With gross sales of only $55k last year (was on pat leave for 8 months) and decreasing long term interest in selling real estate beyond family and friends, the company is becoming more of a vehicle to hold slightly less than $300k in Canadian blue chip eligible dividend stocks and flowing the dividends through to myself personally. My spouse will likely be off on disability for all of 2023 and beyond so I am considering doing my own corporate return this year. I have an MBA and at one time was considering getting an accounting designation because I aced my accounting courses, but I've forgotten a lot of it. I've always done our personal taxes myself as well.

I'm wondering what is the best tool or software for doing corporate returns? I use SimpleTax for personal and there is no corporate option. Doing my taxes myself should save me around $1200-$1500 this year.

Thanks
12 replies
Deal Fanatic
Oct 7, 2007
9277 posts
5105 upvotes
Turbotax for Incorporated Business is a good option. It is not cheap but if you know what you are doing it is cheaper than hiring a professional.
Newbie
Nov 16, 2022
16 posts
21 upvotes
Toronto, ON
I have been using UFile T2 online and am very happy. What I did was - I had an accountant do my taxes for one year and then for that same year I entered all data into T2 myself. This way I learned what goes where. When my T2 was matching accountants' T2 I was ready to do my corporate taxes myself.
I use QuickBooks to track my income/expenses/balance sheets.
[OP]
Deal Fanatic
Mar 21, 2013
5075 posts
8413 upvotes
Canada
RFDVi001 wrote: I have been using UFile T2 online and am very happy. What I did was - I had an accountant do my taxes for one year and then for that same year I entered all data into T2 myself. This way I learned what goes where. When my T2 was matching accountants' T2 I was ready to do my corporate taxes myself.
I use QuickBooks to track my income/expenses/balance sheets.
Thanks, is UFile comparable to Turbotax? Is it actually free?

If starting from scratch off of last year's accountant return how could I handle the balance sheet without paying a fee? Is there anything better than Excel?
Newbie
Nov 16, 2022
16 posts
21 upvotes
Toronto, ON
Blubbs wrote: Thanks, is UFile comparable to Turbotax? Is it actually free?

If starting from scratch off of last year's accountant return how could I handle the balance sheet without paying a fee? Is there anything better than Excel?
It is not free - about 150$. I used Turbotax before, but switched to UFile because it was always cheaper and I prefer to do it online, instead of downloading software.
You should be able to do balance sheet and profit/loss report BEFORE you start doing any corporate taxes - you need to understand these reports before you do taxes. Values from these reports are used as inputs for corporate tax software.
You can use Excel to build your balance sheet/Profit Loss report - it does now matter how you do them.
[OP]
Deal Fanatic
Mar 21, 2013
5075 posts
8413 upvotes
Canada
RFDVi001 wrote: It is not free - about 150$. I used Turbotax before, but switched to UFile because it was always cheaper and I prefer to do it online, instead of downloading software.
You should be able to do balance sheet and profit/loss report BEFORE you start doing any corporate taxes - you need to understand these reports before you do taxes. Values from these reports are used as inputs for corporate tax software.
You can use Excel to build your balance sheet/Profit Loss report - it does now matter how you do them.
Yes, as mentioned I am familiar with accounting from my MBA. Just wondering what would be the best/easiest system to port everything from last year’s accountant-produced balance sheet to.

Unfortunately I use wave apps not quickbooks so balance sheet isn’t as well automated. Maybe I should it explore it more and see if HR Block has improved it since they bought it.
Sr. Member
Mar 6, 2010
820 posts
333 upvotes
Brampton
Not to highjack OP's thread but I am in similar boat and just posted the following questions in another thread.

I have made the mistake of investing leftover money in corporation account in dividend paying equities.
I want to learn how to prepare T2 tax return for the following items
1. How to calculate and report dividend income?
2. How to report currency conversions from CAD to USD?
3. How to report any capital gain/loss and ACB and any similar mumbo jumbo related to equities?
Can somebody please advise how can I learn the above from a tax professional or from someone knowledge enough?

One way out would be as RFDVi001 mentioned above - have the file prepared by a professional and use that as the template for future. However, it will be lot better to learn as there are just a few things to learn.
But how can one find someone who is knowledgeable enough about Corp Taxes involving dividend income?
Member
Sep 8, 2010
383 posts
123 upvotes
Chambly
luking wrote: Not to highjack OP's thread but I am in similar boat and just posted the following questions in another thread.

I have made the mistake of investing leftover money in corporation account in dividend paying equities.
I want to learn how to prepare T2 tax return for the following items
1. How to calculate and report dividend income?
2. How to report currency conversions from CAD to USD?
3. How to report any capital gain/loss and ACB and any similar mumbo jumbo related to equities?
Can somebody please advise how can I learn the above from a tax professional or from someone knowledge enough?

One way out would be as RFDVi001 mentioned above - have the file prepared by a professional and use that as the template for future. However, it will be lot better to learn as there are just a few things to learn.
But how can one find someone who is knowledgeable enough about Corp Taxes involving dividend income?
Why is it a mistake? I also have dividend paying equities in my holding company
Newbie
Nov 16, 2022
16 posts
21 upvotes
Toronto, ON
To avoid dealing with dividend payments insider corporation, in my corporation I invested retained earnings into Horizons S&P 500 ETF (https://horizonsetfs.com/ETF/hxs/) - this ETF does not pay any dividends but converts them to capital gain. When the time comes and I will have to sell my holdings, then I'll have to learn how to report that on T2. At that time, I will get an accountant for 1-2 hours that will show me how to do that on T2.
Sr. Member
Mar 6, 2010
820 posts
333 upvotes
Brampton
RFDVi001 wrote: To avoid dealing with dividend payments insider corporation, in my corporation I invested retained earnings into Horizons S&P 500 ETF (https://horizonsetfs.com/ETF/hxs/) - this ETF does not pay any dividends but converts them to capital gain. When the time comes and I will have to sell my holdings, then I'll have to learn how to report that on T2. At that time, I will get an accountant for 1-2 hours that will show me how to do that on T2.
Yes, this is another option that has been suggested. However, I feel it is best to learn how to file and invest without barriers!
Sr. Member
Mar 6, 2010
820 posts
333 upvotes
Brampton
mcu wrote: Why is it a mistake? I also have dividend paying equities in my holding company
because annual dividend income is $200, the account is down 15% and the accounting cost will be $500+ for 15 mins of work
Deal Addict
Jul 30, 2003
2032 posts
410 upvotes
Toronto
I have used taxtron t2, not the easiest tool, but only 100 ish, good enough for a very simple return.

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