Help with Business Structure change and Filing

Question 1: My wife and I operated a General Partnership business over the past 5 years. This year we changed our Company name and Structure to being Incorporated and shut the partnership down in September 2016. How do we file our personal tax return for both the Partnership and Incorporated Company for ourselves? In addition, our Contractors also worked for both companies and I need to know if we need to send two different T4As to our Contractors from each company? Can someone kindly assist in this matter and if we can use Turbo Tax (As we always have) or if we should hire an accountant do to everything for us do to complexity.

Question 2: We also operate a totally different business, in another industry and are wondering how we file our own personal tax returns for the new venture? We launched in 2016 and have zero profit and sales. The costs to start the business and build it out was nearly $30,000. I know this will be taken as a loss, however how can we file our above (Q1) Company personal income and how do we file our new venture taxes at a lost?

Thank you so much for your answer :)

Answer

You can use Standard or Home& Business editions to file the partnership return for the period up to Sept 2016.

You can use Turbo Tax Business Incorporated if you feel comfortable in doing so for the Corporate tax return.

Yes, you need to issues separate T4A's as each company is it's own legal entity.

The additional business venture, if incorporated, must be filed separately from all the above. Again, Turbo Tax Inc.is the product you would use.

If a sole proprietorship, you would be able to add to your Personal return using Standard or Home & Business, you can add multiple businesses to your return. The loss would be applied against any income earned in above Q1. Split between both you and your spouse.

as a side note, it is highly recommended that when operating multiple businesses you maintain your records accordingly to avoid any potential future questions that arise from CRA.

Was this answer helpful? Yes No
Default user avatars original
TurboTaxStef , CPA, CGA
Employee

No answers have been posted

More Actions

People come to TurboTax AnswerXchange for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

  1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
  2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
  3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
  4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
  5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.

Select a file to attach:

Do you still have a question?

Ask your question to the community. Most questions get a response in about a day.

Post your question to the community