seanmick8

I live in Quebec and have a full time job for which I file my taxes for each year. In August 2007 I started working on some freelance work on the side and invoiced the customers under my own name. I put 40% of what they paid me aside for income taxes. Now, in 2008, I am registering my business as a sole proprietorship to keep my business and personal expenses seperate and also may one day quit my full time job and work on my own business. I made about 10k in 2007, $4500 of which I have set aside for taxes. However, I have not bought anything for my business as I use a borrowed computer and bear the cost of my phone on my own cellphone bill. I need a computer now, do I buy the computer, then deduct the amount paid for the computer from the amount I declare as income on my tax return? Same goes for a new cellphone just for my business? In other words, I make 10k, spend 2k on a laptop and then 500 on cellphone and services, so I declare that my profit is 7.5k?

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seanHodge

@seanmick8

This is my first year freelancing so I don't know the answer to this. I think investing in an accountant is worth it. The amount of time you put into accounting is time you could be doing something more interesting. Unless you like taxes and accounting. Then its all fun and games.

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Sean Hodge
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Gino

The best advice I can give you is to find a tax accountant, they are well worth every penny and can really help you in the long run. Ask family members, friends and or co workers if they know any good tax accountants that can help you.

In the meantime, save all your receipts and keep all your paperwork organized and track all your income and expenses so you have everything ready for your tax accountant.

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