Video instructions and help with filling out and completing What Form 2220 Revenue

Instructions and Help about What Form 2220 Revenue

Hi my name is karai Bertie I'm a chartered professional accountant serving clients located throughout the GTA in Ontario Canada in today's tutorial video I am going to show you how you can file your own tea to corporate income tax return for your small business generally I would recommend this only if you have a very small business with simple business expenses and no really tax complexities involved let's begin step 1 you need to compile the following basic statements a balance sheet income statement trial balance and general ledger you can use many free online accounting software's which can easily export these statements for you I would recommend using waive accounting for the purposes of this tutorial video i have created sample statements you can see here I have a balance sheet within company name and the year end date the statement details the assets of the company the liabilities and the shareholders equity in addition there is also an income statement which details the revenues and expenses of the corporation it also calculates the net income which is revenue minus your expenses step 2 to download the schedules required go to Google and search t2 returns and schedules click on the first link from the CRA here you are provided all the PDF fillable files of corporate tax return schedules required to file a return in Canada no you will not need to follow all these schedules but only particular ones step 3 download the following schedules onto your computer for the purposes of this video I have downloaded all these schedules already you will need the t2 corporate income tax return schedule which is schedule 200 or commonly referred to as the jacket download also schedule 1 net income for income tax purposes schedule 8 capital cost allowance schedule 50 shareholder loan a shareholder information schedule 524 ontario specialty types this schedule is not required unless you're filing a return for a corporation located in ontario download also schedule 546 Corporations Information Act annual return for Ontario corporations again if you're not an entire Ontario corporation you do not need to file the schedule next download schedule 100 which is for the balance sheet schedule 125 which is the income statement and schedule 141 which is the notes checklist download all of these schedules onto your computer as a PDF fillable step 4 now that you have all the schedules downloaded we can begin preparation of the tea to corporate tax return start by completing schedule 100 which is in putting the balance sheet you compiled earlier you can see I have inputted the company's corporation name business number and new end date these three things will be required to be inputted on every schedule of the corporate tax return this schedule is organized by assets liabilities shareholders equity and retained earnings these numbers have all been obtained from the financial statements compiled earlier the CRA provides a field code for each balance sheet item if you scroll below there is a reference sheet for example cash has a field code of 1001 so you would go under assets put in the field code of 1 0 0 1 and the amount from your financial statement complete this for all the items on your balance sheet step 5 complete schedule 125 which is inputting the income statement you compiled earlier this schedule is organized by revenue and expenses similar to schedule 100 each item for the income statement has a field code and the amount is referenced from your compiled financial statements if you scroll below you will see an index providing the field codes for the income statement as an example the trade sales of goods and services has a field code of 8,000 if we scroll up under non non-farming revenue we have the field code of 8,000 and the amount from our compiled financial statement of $10,000 complete the same step for all your income statement items step 6 complete the gippy schedule 141 which is notes checklist this is an informational schedule for the CRA read each question carefully and check off accordingly your answers will be very similar to this example for many of you step seven complete schedule 524 remember this schedule is only required if you're an Ontario corporation if you are a federal corporation do not file the schedule your answer will be very similar to this example from any of you step eight complete schedule 546 again this schedule is for Ontario corporations only if you are a federal corporation or poor or a corporation located in another province you will not need to file this particular schedule be careful to read part 3 carefully for changes that need to be reported such as a change in director or officer many of you will not have to file any of part six or part seven or part five step 9 complete schedule 50 this schedule reports the shareholders only more than 10 percent of shares in the corporation you need to report the legal name of the shareholder the social insurance number and the share orange percentage if you have multiple shareholders they should each be listed step 10 complete schedule 8 this schedule reports any depreciable capital assets of the company and calculates the capital cost allowance in column 1 we have the class number which depends on the type of asset you can determine the class number by visiting the CRA website column 3 we have the cost of acquisitions which is the purchase cost of the asset in our example company we had an asset of computer hardware which is purchased for $500 column 7 we apply the half-year rule column 9 we apply the depreciation rate column 12 reports the amount that can be deducted $138 column 3 reports the amount that's undepreciated and can be carried forward into future years to be further depreciated as a tip make sure when you're