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[OP]
Sr. Member
Apr 8, 2007
829 posts
181 upvotes

filing corp. taxes on my own?

Hi,

I incorporated a holding company last year and made about 150k in it. I wonder how do i go about filing the income tax on my own without using one accountant?

Thanks
Running on hackintosh in 2011: I5 ivy Bridge 3.10 HD3000, Zotac 1030 2G video card, HDMI 2.0 cable, 16G RAM( max out at 1600mhz) on a Gigabyte GA-B75M-D3H Mobo with ITB Crucial MX500 SSD, With 4K 60HZ UM7300AUE as a monitor> Retina Display
33 replies
Member
Jan 18, 2017
361 posts
274 upvotes
It's actually really easy to do. Just fill this form out and send it in:

https://www.canada.ca/content/dam/cra-a ... t2-20e.pdf

If you have investment income (you did mention "holding company") then there's a few more things to add.
ovovov wrote: Hi,

I incorporated a holding company last year and made about 150k in it. I wonder how do i go about filing the income tax on my own without using one accountant?

Thanks
______
Canadian & US tax guy (CPA)
Member
May 25, 2018
207 posts
43 upvotes
crossborderguy wrote: It's actually really easy to do. Just fill this form out and send it in:

https://www.canada.ca/content/dam/cra-a ... t2-20e.pdf

If you have investment income (you did mention "holding company") then there's a few more things to add.
I actually agree filing taxes can be easier if done by paper than using software.. ...some software just complicates things.....
Deal Addict
May 22, 2019
1154 posts
588 upvotes
For field 40, if I incorporate in Ontario for IT consulting, what should I select?

crossborderguy wrote: It's actually really easy to do. Just fill this form out and send it in:

https://www.canada.ca/content/dam/cra-a ... t2-20e.pdf

If you have investment income (you did mention "holding company") then there's a few more things to add.
Enjoying my post without UPVOTE is a serious violation.
Member
Jan 18, 2017
361 posts
274 upvotes
Since you're an IT Consultant, hopefully this is a good metaphor: You've just asked a question equivalent to a person saying "I'm going to build my own computer, but can someone tell me what a motherboard is?"

ilovetoyota wrote: For field 40, if I incorporate in Ontario for IT consulting, what should I select?
______
Canadian & US tax guy (CPA)
Deal Addict
User avatar
Jul 22, 2004
1790 posts
196 upvotes
GTA
crossborderguy wrote: It's actually really easy to do. Just fill this form out and send it in:

https://www.canada.ca/content/dam/cra-a ... t2-20e.pdf

If you have investment income (you did mention "holding company") then there's a few more things to add.
This form is just the T2, what about all the supporting documentation (schedules) that need to be filed
A penny saved, is a penny earned!
Member
Jan 18, 2017
361 posts
274 upvotes
Super easy too. Just fill out the ones you need.
Blazin_Sunfire wrote: This form is just the T2, what about all the supporting documentation (schedules) that need to be filed
______
Canadian & US tax guy (CPA)
Deal Addict
User avatar
Jul 22, 2004
1790 posts
196 upvotes
GTA
crossborderguy wrote: Super easy too. Just fill out the ones you need.
I guess I was implying that the caveat you just mentioned needs to be emphasized. You made it seem too easy to file taxes. "Just fill this form out and send it in". People unfamiliar would literally take you at face value and fill out that 1 form.
A penny saved, is a penny earned!
Member
Jan 18, 2017
361 posts
274 upvotes
That's kind of the point....

Blazin_Sunfire wrote: I guess I was implying that the caveat you just mentioned needs to be emphasized. You made it seem too easy to file taxes. "Just fill this form out and send it in". People unfamiliar would literally take you at face value and fill out that 1 form.
______
Canadian & US tax guy (CPA)
Deal Fanatic
Oct 7, 2007
9078 posts
4948 upvotes
I find there is a big difference between doing taxes for an individual versus doing one for a corporation. Even if you have software to help you do both, you need to have much more technical knowledge to do the latter properly and confidently.
Member
Oct 8, 2019
242 posts
113 upvotes
Blazin_Sunfire wrote: I guess I was implying that the caveat you just mentioned needs to be emphasized. You made it seem too easy to file taxes. "Just fill this form out and send it in". People unfamiliar would literally take you at face value and fill out that 1 form.
This form basically tells you what other attachments are required. He cant tell anyone to include other specific schedules since it'll vary based on each individuals circumstances. But this would definitely point someone in the best direction of starting and if they cant get past this..they shud definitely pay for such services.
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User avatar
Jul 22, 2004
1790 posts
196 upvotes
GTA
Some1rulez wrote: This form basically tells you what other attachments are required. He cant tell anyone to include other specific schedules since it'll vary based on each individuals circumstances. But this would definitely point someone in the best direction of starting and if they cant get past this..they shud definitely pay for such services.
My point was the instructions were too rudimentary. "Just fill out this form and send it in". The link is only for the T2 form, with none of the supporting documents that also need to be sent in. Someone that has nil knowledge of taxes may be confused, and will only send the one filled PDF file. That was all I was trying to say.
A penny saved, is a penny earned!
Newbie
Jun 7, 2016
91 posts
64 upvotes
Strongly suggest against filing your own T2, I’m a tax accountant, doing your own T1 is basic enough but a T2 is not simple to do, many considerations that you can’t find on Google.

Hire a CPA, get it done right, will cost you less in the long run.
Sr. Member
Nov 4, 2012
800 posts
294 upvotes
I never used paper form. I used Taxtron. I may try paper form next year just to save some $$
Deal Addict
Aug 28, 2007
2005 posts
383 upvotes
Calgary
Short answer: You Don't!

I've run an IT Consulting business for over 2 decades. And I've run a handful of other businesses as well. I would never consider doing my own taxes for any of those businesses.

Firstly, for one company, you're talking about "saving" maybe $1,500 or $2,000 for a simple IT consultant. I guarantee you will miss some deduction worth substantially more than that.

Secondly, even though I have a very good idea of how to file my taxes, the time it takes to collate the material and fill out all the forms is simply not worth my time. Take your utilization rate and your bill rate and match it to what your accountant will charge you. it is a no brainer!

There is a time to do things in-house and there is a time to find a vendor and out-source. That decision is a measure of your management skill.
Member
User avatar
Jun 3, 2008
238 posts
244 upvotes
Newmarket
crossborderguy wrote: It's actually really easy to do. Just fill this form out and send it in:

https://www.canada.ca/content/dam/cra-a ... t2-20e.pdf

If you have investment income (you did mention "holding company") then there's a few more things to add.
I have the same question. Hard for me to imagine not using tax software. I just filed my personal return using TurboTax, it was 60-70 pages and would not be possible without tax software.

Would you not recommend T2 tax software and if so, which one is most cost effective?
Sr. Member
Mar 6, 2010
680 posts
249 upvotes
Brampton
Paying someone $1000+ for less than 30 minutes of work is utter non sense.
Might as well do it yourself if it is straight forward work with next to no transactions as is the case with people doing contract work for one employer.
[OP]
Sr. Member
Apr 8, 2007
829 posts
181 upvotes
I looked on Turbo tax and it is for $199 per return for RBC business clinet....

Also looked on TaxTron , it is $99( correct me if I am not correct)

Any other places to look for a software?

for anyone keep saying looking for an CPA or get help with professionals, please move on--- point well taken as this topic is for users who wants to DIY..
Running on hackintosh in 2011: I5 ivy Bridge 3.10 HD3000, Zotac 1030 2G video card, HDMI 2.0 cable, 16G RAM( max out at 1600mhz) on a Gigabyte GA-B75M-D3H Mobo with ITB Crucial MX500 SSD, With 4K 60HZ UM7300AUE as a monitor> Retina Display
Deal Fanatic
Oct 7, 2007
9078 posts
4948 upvotes
ovovov wrote: I looked on Turbo tax and it is for $199 per return for RBC business clinet....

Also looked on TaxTron , it is $99( correct me if I am not correct)

Any other places to look for a software?

for anyone keep saying looking for an CPA or get help with professionals, please move on--- point well taken as this topic is for users who wants to DIY..
This is actually a pretty good deal. I don't recall seeing it priced that low anywhere.
Member
User avatar
Jun 3, 2008
238 posts
244 upvotes
Newmarket
Just Confused wrote: Short answer: You Don't!

I've run an IT Consulting business for over 2 decades. And I've run a handful of other businesses as well. I would never consider doing my own taxes for any of those businesses.

Firstly, for one company, you're talking about "saving" maybe $1,500 or $2,000 for a simple IT consultant. I guarantee you will miss some deduction worth substantially more than that.

Secondly, even though I have a very good idea of how to file my taxes, the time it takes to collate the material and fill out all the forms is simply not worth my time. Take your utilization rate and your bill rate and match it to what your accountant will charge you. it is a no brainer!

There is a time to do things in-house and there is a time to find a vendor and out-source. That decision is a measure of your management skill.
I think this depends a lot on the complexity of your taxes. I've also run an IT Consulting business for over 2 decades and can tell you the filing year to year is very similar.

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