help clarifying tax as a contractor
 

Hi. Recently i completed a job in september 2011 and was suppose to get a payment from the client for about 20 g at the beginning of november 2011. However, the customer was not able to pay until january of the new year 2012. From my understanding i am to declare the income for 2012. Is this correct? Ideally i would like to declare that income for 2011 to minimize my taxes. Is thwre any argument i can make for this or am i screwed here? Thanks for the insight.
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income is declare when it was earned.. now , to determined when, it will against the invoice date, or contract date.. so forth.

Under both Canadian GAAP (private companies) and IFRS (public companies), revenue is recognized when the work is performed. The income was done in 2011 and should simply be reflected as an accounts receivable at year end if not paid.

Mark

You have to declare it for 2011 but there is an allowance for AR...so you can deduction all or part of it for 2011 and declare it for 2012

thank you for the infoemation. I will look more into it. What do you mean by AR wady41?
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Accounts receivable
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