Nuts and Bolts of Tax Time Preparation

*Editor's Note: Though this references Canadian forms, the essentials types of documents are the same for many countries, just the names change.

You can save yourself time and money while completing your taxes. The Nuts and Bolts of Taxes is a system for your home and or office that will allow you to prepare your taxes without the time and cost of setting up an elaborate bookkeeping system. It takes just a bit more time and thought in organizing your paperwork with an incredible end result. Join me on the journey to make this your easiest tax season ever.

To get started:

• Set up a folder or a large envelope called Personal Taxes 200_ and staple this check-list to it.
• As you acquire each document check off the box.
• Remember to mark an X beside the box that doesn't pertain to your situation.
• Your personal taxes are ready to be submitted to your accountant as soon as your check-list is complete.

This check-list has been supplied by Christine Raffan, Certified General Accountant craffan@sympatico.ca.

Personal Tax List

• T4A(P) Canada Pension Plan Benefits, T4A (OAS) Old Age Security payments
• T4 RIF Issued to the surviving spouse for payments made after the death of a spouse, to a deceased for payment made prior to death
• T4: employment
• T4A: commissions & self-employment
• T4E: Employment insurance
• T5: investment income
• T3: income from trusts
• T5007: Worker's compensation or social assistance
• T5013: partnership income, tax shelters
• RRSP contribution slips
• T4RSP: retirement savings plan income
• Medical expense receipts
• Charitable donations and political contributions
• T2200: Declaration of conditions of employment
• T2202Tuition fees receipt and interest paid on a student loan
• Professional & Union dues
• Safety Deposit box fees, investment management fees (eg. Stocks, bonds)
• Professional Consultants' fees, accounting and legal fees
• Spousal support income/payments, details of changes in marital status, details of
• Alimony/child support (copy of agreement)
• Moving expenses (if you moved more than 40km to be closer to your work)
• RRSP home buyer's plan and education withdrawal information, repayment details
• Tax-shelter credits
• Child-care information (must have SIN if an individual provided childcare)
• Receipts or details of instalments paid for 2004
• Investment portfolio details of activity
• CRA mailing labels

If you have a sole-proprietorship you will need to document your business activities according to Revenue Canada's guidelines and allocate space to keep your files for CRA's 7 year requirement. If you run your own business or are self-employed, here is a list to start you thinking about gathering information: Revenue and expenses for the year (separate GST out for personal tax preparation)

• Office expenses: basic supplies
• Meals and entertainment
• Business use of Auto: gas, insurance, maintenance, parking. Total mileage for the year and portion that was business use.
• Tools/Equipment
• Advertising/Marketing/Website
• Dues and Subscriptions
• Communications: phone, cell, internet, long distance portion on home phone that is business related
• Travel, parking

The above list covers some common expense categories of owner-operated businesses. The challenge at tax time is to summarize and provide your accountant with the end results and is often the most neglected and most costly part of tax preparation work. Contacting a professional organizer is an alternative to compiling this information. They often work closely with an accountant and have valuable experience to save you money. To obtain more detailed information on compiling business activities or for more information about organizing your home or office contact Deanne Kelleher at Kaos Group the Professional Organizers at www.kaosgroup.ca, by phone at 416.707.1816, or visit www.womeninahomeoffice.com> to contact Christine, Deanne and other home based business owners in the Toronto East area.