Personal tax accountant in Nanaimo

Personal tax returns for Nanaimo residents start from $100. A self-employed T1 with schedules is commonly $250–$450. The published fees show every starting point, and the fee for your return is fixed in writing before any work begins.

April 30, and June 15 for the self-employed

The T1 is due April 30. If you or your spouse are self-employed, the filing deadline moves to June 15. The balance owing does not move: it is still due April 30, and interest runs from then. Filing late with a balance owing also brings a late-filing penalty on top of the interest.

The simplest habit is to estimate the balance in March and pay it by April 30, then finish the self-employed schedules by June. The personal tax deadline page lists the dates, and free deadline reminders send them to your inbox.

A business on the T2125

A sole proprietor reports business income on the T2125 inside the T1. On the central Island that covers a lot of people: a home-based bookkeeper in Lantzville, a mobile trade working from Ladysmith, a consultant who moved over from Vancouver and kept their clients. Income, expenses, the business share of a vehicle and a home office all go on the form.

Two things trip people up. Once taxable sales pass $30,000 in four consecutive calendar quarters, GST registration is mandatory. And CPP is owed on self-employed earnings at both the employee and employer rates. Our self-employed tax return page covers what to bring.

The vehicle is usually the largest claim on a T2125, and on the Island the kilometres add up quickly. A round trip from Ladysmith to a job in Parksville is a fair share of a working day. The CRA expects a log of business trips, with odometer readings at the start and end of the year. When the pattern is steady, a log kept for a representative period can support the whole year. The mileage and vehicle log sets out what to record.

Pension income and retirement on the Island

Many retirees settle on the central Island, and their returns have a pattern. Pension income from a former employer, RRIF withdrawals, CPP and OAS all arrive on different slips. Eligible pension income can be split with a spouse on the return, which can lower the household’s total tax and protect benefits that are reduced as income rises.

The split is an election made each year, not a permanent arrangement. It is worth running both ways every time. See pension income splitting and planning around the OAS clawback.

A suite downstairs and the T776

Plenty of Nanaimo homes have a rented suite. Rent is reported on the T776, with a share of the home’s mortgage interest, property tax, insurance and utilities deducted against it. The share is usually based on floor area. Repairs are deductible in the year; improvements that last are capital and go through CCA.

Claiming CCA on a suite in your own home is usually a mistake, because it can complicate the principal residence exemption when you sell. Short-term rentals to visitors raise their own GST questions. Current or capital? and rental income returns cover both.

Selling a home after a move to the Island

People who moved from the Lower Mainland often sold a home to do it. The sale of a principal residence still has to be reported on the T1, with the designation made on the return. Leaving it off can cost the exemption or bring a penalty. If the home was ever rented or used for business, part of the gain may be taxable.

Where a former home was kept and rented out instead, the change in use is a deemed sale at that date. Change-in-use rules explains the election that can defer it.

Instalments, RRSPs and the year ahead

Personal instalments are required when net tax owing exceeds $3,000 in the current year and either of the two previous years. The dates are March 15, June 15, September 15 and December 15. Retirees whose RRIF withdrawals have little tax withheld and owners paid by dividends often cross that line without noticing until the first reminder arrives.

RRSP contributions reduce taxable income and are often the cleanest way to lower an instalment. The instalment calculator shows where you stand.

Owners in Nanaimo’s main industries

Owners of construction companies and trades corporations usually report a T4 salary, T5 dividends or both, and the personal return is planned with the company’s year-end. Restaurant staff report tips as income. Commercial fishers may report EI fishing benefits, and their fishing income can use the cash method; see fishing and seafood accounting. Realtors without a corporation report commission on the T2125, with GST tracked alongside.

For an owner, the personal return and the company’s year-end are one decision made in two places. The salary and dividends set at the corporate year-end decide the T1 the following spring, along with the RRSP room and the instalments that come with it.

What is covered

One Chartered Professional Accountant prepares the return:

• T1 personal returns for individuals and couples
• T2125 business income and self-employed CPP
• T776 rental income from a suite or property
• Pension income splitting and RRIF planning
• Principal residence designations on a sale
• Instalment and RRSP planning for the next year

Remote, and there is no Nanaimo office

EverStone is based in Abbotsford and serves Nanaimo residents remotely. Slips and receipts come in through a secure upload link, questions go by email first, and the return is signed electronically before it is filed. A video meeting is booked when one helps. Nobody needs to catch a ferry for a tax appointment.