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01-15-2012, 12:09 PM
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#1
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I STILL don't get it
Join Date: Dec 2009
Location: van
Posts: 499
Thanked 174 Times in 74 Posts
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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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01-16-2012, 04:12 AM
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#2
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I bringith the lowerballerith
Join Date: Dec 2003
Location: Vancouver
Posts: 1,118
Thanked 28 Times in 12 Posts
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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.
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01-16-2012, 05:10 AM
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#3
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Old School RS
Join Date: May 2004
Location: Port Moody
Posts: 4,641
Thanked 4,157 Times in 1,262 Posts
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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
__________________
I'm old now - boring street cars and sweet race cars.
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01-16-2012, 05:36 AM
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#4
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Rs has made me the man i am today!
Join Date: Apr 2004
Location: Vancouver
Posts: 3,073
Thanked 69 Times in 47 Posts
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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
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01-16-2012, 09:12 AM
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#5
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I STILL don't get it
Join Date: Dec 2009
Location: van
Posts: 499
Thanked 174 Times in 74 Posts
Failed 162 Times in 34 Posts
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thank you for the infoemation. I will look more into it. What do you mean by AR wady41?
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01-16-2012, 09:21 AM
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#6
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My AFC gave me an ABS CEL code of LOL while at WOT!
Join Date: Nov 2006
Location: vancouver
Posts: 3,560
Thanked 1,459 Times in 505 Posts
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Accounts receivable
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