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Accounting Concepts in 2 minutes! What are Compiled Financial Statements? Financial statements are reports that show how a company is doing financially. They help people, like investors or managers, understand the company’s financial health. There are three main types of financial statements: 1. Balance Sheet: This shows what the company owns (assets) and owes (liabilities) at a specific moment in time. It also shows the company’s net worth (equity). 2. Income Statement: This shows how much money the company made (revenue) and spent (expenses) over a period of time. It also shows if the company made a profit or a loss during that period. 3. Cash Flow Statement: This tracks the movement of cash in and out of the company. It shows how the company’s cash changes because of its activities like operating, investing, and financing. Together, these statements give a full picture of the company’s financial situation—how much it owns, how much it owes, how much money it’s making, and how cash is flowing in and out. 🆓Book a FREE consultation with me to learn more ➡️https://www.smartbuinessaccounting.ca 705-558-1703 ⭐Social Media⭐ ➡️ @smartbusinessaccounting #SmartBusinessAccounting #SteveWilliamsAccountant #SBA #SteveWilliams #OntarioAccountant #Accountant #CanadaAccountant #OrilliaAccountant #BusinessAccounting #Accounting101 #financialstatements #AccountingIn2Minutes #AccountingMadeEasy #FinancialConcepts #AccountingSimplified #AccountingTips
What are Compiled Financial Statements
Accounting Concepts in 2 minutes! How to file taxes for rental properties Filing rental properties on your T1 taxes in Canada means reporting the income you earn from renting out a property, along with the expenses you incur to maintain it. Here’s how you can do it in simple steps: 1. Report Rental Income •Rental income is the money you get from tenants. This includes regular rent payments, as well as any extra fees like parking or maintenance. •Add up all the money you’ve received from renting out your property during the year. 2. Track Rental Expenses You can deduct certain expenses related to maintaining and running the rental property. Common expenses include: •Mortgage interest (not the principal, just the interest part) •Property taxes •Insurance •Repairs and maintenance (like fixing a broken appliance or repainting) •Utilities (if you pay them for your tenant) •Advertising (costs of finding tenants) •Professional fees (if you hire a property manager or an accountant) 3. Complete the T776 Form •To report your rental income and expenses, you need to fill out Form T776: Statement of Real Estate Rentals. •In the form, you’ll list all your rental income and the eligible expenses. This will give you your net rental income (income minus expenses). 4. Add the Net Rental Income to Your T1 •The net rental income (or loss) from the T776 form gets added to your main tax return, the T1 General form. •If you made a profit, it will increase your total income for the year. If you made a loss, it could reduce your overall taxable income. 5. Keep Good Records •Make sure to keep all receipts and documents related to your rental property, such as invoices for repairs, mortgage statements, and property tax bills. You might need them if the CRA asks for proof or if you get audited. Key Tip: If your rental property is a secondary property (like a vacation home or a property you rent out occasionally), be sure to follow the rules about reporting any capital gains when you sell it later. In short, you report the income, track your expenses, fill out the T776 form, and then add your rental results to your T1 tax return. If you’re unsure about anything, it’s a good idea to consult a tax professional to make sure everything’s done correctly! 🆓Book a FREE consultation with me to learn more ➡️https://www.smartbuinessaccounting.ca 705-558-1703 ⭐Social Media⭐ ➡️ @smartbusinessaccounting #SmartBusinessAccounting #SteveWilliamsAccountant #SBA #SteveWilliams #OntarioAccountant #Accountant #CanadaAccountant #OrilliaAccountant #BusinessAccounting #Accounting101 #rentalproperty #rentals #AccountingIn2Minutes #AccountingMadeEasy #FinancialConcepts #AccountingSimplified #AccountingTips
How to File Taxes for Rental Properties
Accounting Concepts in 2 minutes! What is CCA/Depreciation? In Canada, CCA (Capital Cost Allowance) and depreciation are terms used to describe how the value of an asset (like a building, vehicle, or equipment) decreases over time. Instead of writing off the full cost of an item all at once, these methods allow you to spread the cost over several years. Here’s how they work in simple terms: 1. Depreciation (General Concept): •Depreciation is the idea that things lose value over time because they’re being used or they get older. For example, a car loses value every year as you drive it. •In everyday life, you might think of depreciation as “wear and tear” — your stuff gets older and worth less over time. 2. CCA (Capital Cost Allowance) (Specific to Canada): •In Canada, when you own something for your business or rental property, you can’t just claim the full cost as an expense in one year. Instead, you use CCA to slowly claim part of that cost every year. •CCA is like a tax deduction that helps you recover the cost of your property or equipment over several years. How CCA Works: •When you buy something for your rental property or business (like a building, vehicle, or equipment), the government says it loses value over time. •CCA lets you claim a portion of that cost every year. So, if you buy a rental property, instead of writing off the whole cost at once, you get to claim part of it each year for many years. Example: Let’s say you buy a fridge for your rental property for $2,000. •Instead of claiming the full $2,000 in one year, you can claim a portion each year for several years using CCA rules. •The government sets different rules for different types of assets, so a fridge might be in one CCA class, while a building would be in another. Why It’s Helpful: •CCA helps you reduce your taxable income over time, which means you could pay less in taxes each year. •It’s a way to reflect that the value of things like property, equipment, and vehicles decreases as they get older and are used. Key Point: •Depreciation is the general idea of things losing value over time. •CCA is how Canada allows you to claim that loss of value (for tax purposes) slowly over time. In simple terms, CCA is the Canadian tax system's way of helping you recover the cost of things you buy for your business or rental property by spreading the cost over multiple years. 🆓Book a FREE consultation with me to learn more ➡️https://www.smartbuinessaccounting.ca 705-558-1703 ⭐Social Media⭐ ➡️ @smartbusinessaccounting #SmartBusinessAccounting #SteveWilliamsAccountant #SBA #SteveWilliams #OntarioAccountant #Accountant #CanadaAccountant #OrilliaAccountant #BusinessAccounting #Accounting101 #CCA #depreciationaccounting #deprecation #AccountingIn2Minutes #AccountingMadeEasy #FinancialConcepts #AccountingSimplified #AccountingTips
What is CCA/Depreciation
Accounting Concepts in 2 minutes! What is a Sole-Proprietor? 🆓Book a FREE consultation with me to learn more ➡️https://zurl.co/SBA 705-558-1703 ⭐Social Media⭐ ➡️ @smartbusinessaccounting #SmartBusinessAccounting #SteveWilliamsAccountant #SBA #SteveWilliams #OntarioAccountant #Accountant #CanadaAccountant #OrilliaAccountant #BusinessAccounting #Accounting101 #CCA #Depreciation #AccountingIn2Minutes #AccountingMadeEasy #FinancialConcepts #AccountingSimplified #AccountingTips
Accounting Concepts in 2 minutes - What is CCA/Depreciation
Accounting Concepts in 2 minutes! What is a Sole-Proprietor? 🆓Book a FREE consultation with me to learn more ➡️smartbusinessaccounting.ca 705-558-1703 ⭐Social Media⭐ ➡️ @smartbusinessaccounting #SmartBusinessAccounting #SteveWilliamsAccountant #SBA #SteveWilliams #OntarioAccountant #Accountant #CanadaAccountant #OrilliaAccountant #BusinessAccounting #Accounting101 #SoleProprietor #AccountingIn2Minutes #AccountingMadeEasy #FinancialConcepts #AccountingSimplified #AccountingTips
Accounting Concepts in 2 minutes - What is a Sole-Proprietor
Accounting Concepts in 2 minutes! What is a corporation? 🆓Book a FREE consultation with me to learn more ➡️smartbusinessaccounting.ca 705-558-1703 ⭐Social Media⭐ ➡️ @smartbusinessaccounting #SmartBusinessAccounting #SteveWilliamsAccountant #SBA #SteveWilliams #OntarioAccountant #Accountant #CanadaAccountant #OrilliaAccountant #BusinessAccounting #Accounting101 #AccountingIn2Minutes #AccountingMadeEasy #FinancialConcepts #AccountingSimplified #AccountingTips
Accounting Concepts in 2 minutes - What is a Corporation?
Accounting Concepts in 2 minutes! Business use of a personal vehicle & how it works 🆓Book a FREE consultation with me to learn more ➡️smartbusinessaccounting.ca 705-558-1703 ⭐Social Media⭐ ➡️ @smartbusinessaccounting #SmartBusinessAccounting #SteveWilliamsAccountant #SBA #SteveWilliams #OntarioAccountant #Accountant #CanadaAccountant #OrilliaAccountant #BusinessAccounting #Accounting101 #AccountingIn2Minutes #AccountingMadeEasy #FinancialConcepts #AccountingSimplified #AccountingTips
Accounting Concepts in 2 minutes - Business use of Personal Vehicle
Accounting Concepts in 2 minutes! An explanation on how a shareholder loan works Website - https//smartbusinessaccounting.ca Phone - 705-558-1703 🆓Book a FREE consultation with me to learn more ➡️https://smartbusinessaccounting.ca 📱 FREE access to all my social media ⭐ Follow us on Social Media ⭐ ➡️ Instagram: @smartbusinessaccounting ➡️ Facebook: @smartbusinessaccounting ➡️ LinkedIn: @smart-business-accounting ➡️ YouTube: @smartbusinessaccounting ➡️ TikTok: @smartbusinessaccounting ➡️ Mastodon: @smartbusinessaccounting ➡️ Threads: @smartbusinessaccounting ➡️ X Twitter: @smartbusinessac ➡️ Pinterest: @smartbusinessaccounting #SmartBusinessAccounting #SteveWilliamsAccountant #SBA #SteveWilliams #OntarioAccountant #Accountant #CanadaAccountant #OrilliaAccountant #BusinessAccounting #Accounting101 #AccountingIn2Minutes #AccountingMadeEasy #FinancialConcepts #AccountingSimplified #AccountingTips
Accounting Concepts in 2 Minutes - Home Office
Accounting Concepts in 2 minutes! An explanation on how a shareholder loan works Website - https//smartbusinessaccounting.ca Phone - 705-558-1703 🆓Book a FREE consultation with me to learn more ➡️https://smartbusinessaccounting.ca 📱 FREE access to all my social media ⭐ Follow us on Social Media ⭐ ➡️ Instagram: @smartbusinessaccounting ➡️ Facebook: @smartbusinessaccounting ➡️ LinkedIn: @smart-business-accounting ➡️ YouTube: @smartbusinessaccounting ➡️ TikTok: @smartbusinessaccounting ➡️ Mastodon: @smartbusinessaccounting ➡️ Threads: @smartbusinessaccounting ➡️ X Twitter: @smartbusinessac ➡️ Pinterest: @smartbusinessaccounting #SmartBusinessAccounting #SteveWilliamsAccountant #SBA #SteveWilliams #OntarioAccountant #Accountant #CanadaAccountant #OrilliaAccountant #BusinessAccounting #Accounting101 #AccountingIn2Minutes #AccountingMadeEasy #FinancialConcepts #AccountingSimplified #AccountingTips
Accounting Concepts in 2 Minutes - Shareholder Loan
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