Now ’s the time to work on getting your “shoebox ” organized
Don’t wait, it’s almost here. This is the season… tax season. RRSPs are now behind us and income-tax preparation is here. You should have most of your slips by now. If you haven’t taken a look at your “shoebox” lately, now’s a good time to do so and work on getting it organized. My accountant mails the “general checklist” (see below) to all of his clients every year to get the ball rolling.
I’m happy that February is over because it means that the next season is coming… I’m talking about the weather. But, most of my colleagues say it for a different reason.
They can’t seem to convince their investment clients to get on a monthly plan. A couple of them told me they see more than 150 clients in the month of February alone.
I could never do that as the rest of my business would suffer, not to mention my health. If a non-investment client calls, they tell them they don’t have the time and they will see them in March. I would never feel good putting off a client for a month.
The charts below are part of what I share with new investment clients. It helps them understand the value of making monthly contributions.
I’m looking forward to writing my next Apples to Apples. It’s about a very hot topic. Happy filing
General checklist for filing your taxes
1. NECESSARY INFORMATION SLIPS
Information slips as follows:
• T4 slips = employment income
• T3, T5 and T5008 slips = interest, dividend income, capital gains
• T4A slips = pension and other income
• T4 (OAS) and T4A(P) slips = old age security and C.P.P. benefits
• T4 (RIF) slips = retirement income
• T4E slips = employment insurance benefits
• T4RSP slips = registered retirement savings plan withdrawals
• T5013 slips = limited partnership tax shelters
• T5006 slips = labour-sponsored fund tax credit
• RC62 slips = universal child care benefit
2. SELF EMPLOYMENT INCOME
Details in respect of self employment income — i.e. professional, business, rental and/or farming.
3. GAINS & LOSSES SUMMARY
Summary of capital gains or losses on stock transactions or other capital property
We suggest that you request that your broker prepare this for you as they normally would have the required information readily available.
4. MUTUAL FUNDS
Annual mutual fund statements for any mutual funds owned outside your RRSP and details regarding long-term investments which generate interest income.
5. EMPLOYMENT EXPENSES
Details regarding employment or commission expenses and a completed T2200 form.
6. OFFICIAL RECEIPTS
Official receipts from your:
• RRSP contributions
• Professional dues
• Tuition fees, textbook and education credit (T2202A)
• Monthly transit passes
• Interest or other carrying costs
• Donations
• Child fitness and activity programs
7. MEDICAL EXPENSES
Medical expense receipts including annual summary of prescription costs that can be provided by your pharmacy.
8. CHILD CARE COSTS
Details and receipts concerning child-care expenses.
9. CHILD SUPPORT OR ALIMONY
Details of child support (re: orders dated prior to April 30, 1997) or alimony paid or received in 2010.
10. DISABILITY TAX CREDIT CERTIFICATE (T2201)
11. RENT/PROPERTY TAX
Rent or property tax paid in 2010 for Ontario tax credit purposes.
12. INSTALLATIONS
Instalment payments made in respect of the 2010 taxation year.
13. 2009 NOTICE OF ASSESSMENT
14. FOREIGN INCOME
Details regarding any foreign income earned. Also provide details of any foreign property owned if the aggregate cost of this type of property is greater than $100,000. Relevant foreign property includes foreign bank accounts, rental properties, Canadian securities held outside Canada as well as investments in foreign businesses. You DO NOT need to include details of property that is used personally or in an active business, as well as foreign RRSPs.
15. NEW HOME ACQUISITIONS
Please let us know if you acquired a home in 2010 and you or your spouse did not own and live in another home in the previous four years.
16. MARITAL STATUS CHANGES
Finally, let us know about any change in your marital status as well as details regarding new additions to your family.