taxdetective-Sandusky-Register

Veryexcited about this news. Steve Dotto is hosting the full day workshop, and I will be one of a number of speakers on using technology. Do you remember Steve from his TV show that used to air on Delta Cable for 15 years, “Dotto on Data”?

My one hour breakout session is just before lunch and it's on controlling paper with technology. It's appropriately named I think…

Today's workshop was Part 4 of what is now a 5 part series on Keeping Records for non corporate, partnerships, proprietorships, etc.

There weren't any questions. I don't know if it was the fact we were discussing voluntary disclosures, civil penalties or taxpayer relief, as well as payroll, with coverage of topics like SIN #'s and work visas, all of which can generate jail time or prosecution if not handled correctly, or whether everyone just fell asleep because they were up all night doing T4's so they could attend.

Anyway, the video should be loaded up for sale in a few minutes. If you missed todays' session it was a serious look at where are the rules, and what should you be aware of if you run across clients who require correction of the past for good (refunds for missed credits or expenses) or bad (didn't declare what they earned), or who are self-employed and hiring people to work with them. The record keeping rules span a number of laws, not just the ITA. There's federal and provincial Acts like the ETA (GST/HST), ESA (Employment Standards), WCB, CPP, EI, Softwood Lumber and I'm sure there's more Acts and maybe Treaties too, that govern over hiring and firing of employees.

Laura has done all the work for us!

I'm always amazed at what can be found on the Bookkeeping Essentials website, it's a treasure trove.

Not only is Laura's information and research presented in a clear, easy to understand way, it's colorful and playful too.

Laura says, this is "help get them started ... I have been tracking most of the announcements since they began releasing them last September. I have published 2 web pages with links that may be useful"

What a great summary of how to transition and what to know about the transition to PST in BC.

There are two web pages, because there's way too much to put on one page...

Various rates (and there are way more rates than you probably think) and many useful summary tables of information  found on this page
http://www.bookkeeping-essentials.com/pst-rates.html


Executive summaries of all the announcements
http://www.bookkeeping-essentials.com/reimplementing-PST.html

I attended a workshop on Saturday with Rosemary Anderson of Thorsteinssons. The topic was the new PST in BC legislation. The short version of what I learned? The old PST is not the new PST - none of the jurisprudence will hold up, as the language is sufficiently different that this is a whole new law. And wait for it...
The new law does not include ANY exceptions. Those are all relegated to the regulations. The regulations (with all the exceptions) hadn't been released yet, but it's supposed to be soon.
The same exceptions as before may or may not be in place. The documentation required for those exceptions has yet to be clarified of course.
I made notes during the first half, then switched to Tweeting in the second half. So you'll find the second half tweeted as much as I could absorb because Rosemary was rapid firing stuff at us for the second half which was about 2 hours. The workshop was 3.5 hours. I felt totally overwhelmed by the end of it.

DO NOT ASSUME YOU KNOW THE RULES or that the old rules work the same way. For example, fixed price contracts can now be broken apart into time and materials and PST charged only on materials. But there were some weird quirks so if that's something you need to know about, you may have to connect with the PST experts at the PST offices and GET IT IN WRITING. If someone just told you something, you can't assume that it will hold up. Ask for written rulings. That's why their PST email query system is great. But it's only great if they will actually answer your questions, but at the moment, they can't even do that, because, guess what, they don't know what the rules will be, just like the rest of us.
Apparently they are re-hiring 400 auditors and putting them on the phone lines and query by email to help us get those 418,000 small businesses in BC up and running in a month and 2 days.
I would say there are three things to be concerned about now so you can roll with the punches as they happen in the next few weeks.
1)Set up your system to add PST in BC to be able to charge the tax now, and as you don't know what's exempt, or if there were will be special rates, and yes there will be as hotel accommodation tax will be 8% and liquor will likely be 10% (just heard that from someone) and there's a 2% tax on something to do with construction. Oh yes, and if you sell webinars that are recorded, unless they meet the definition of educational products as defined (definition not yet released) you'll be paying tax on those too. Live webinars, I don't believe so, but not totally sure. I spent an hour with a CGA who works at the Finance Ministry asking about the products I sell on my website, and got absolutely no-where. I'm just assuming for now that I charge PST until I hear different.
2)Be prepared to have a system to self-assess PST on any purchases you haven't paid tax on at the till. Anything that is a right, a view, or a download as anything digital is being taxed and because you download or import it from out of BC, you'll have to self-assess. At the end of May when you file your first return for April, you'll need your books up to current for April in order to self-assess for everything on which you didn't pay PST during the month. You don't get this back, as PST is an end user tax, not a value added tax.
3)Inventory count and % of completion on anything under construction. At March 31, the value of everything you will sell will need to be computed, as when you sell that product, or deal with that completion invoice, you'll need to self-assess on the PST at the date of transition. Do I know how that will work, of course not. If you're in the Oil and Gas industry in the north, you may want to check with your accountant, because it may be a wise move to move your equipment to BC before the end of March because you'll be required to self-assess at 50% of original cost the next time it crosses the border from AB, regardless of fair market value. And gifts, any gifts from out of province will be self-assessable.
Now all three of these suggestions are very simplistic. I'm not able to provide details about how the regulations will affect anyone, as NO-ONE has seen those yet.
As to how QuickBooks handles PST, it's not doing well as the PST paid doesn't pass through to the Time and BIlling system. I'm working on them, but it isn't going to be a quick solution. I did figure out how to set up the PST using the first button on the Wizard, you should be able to create a BC Sales Tax Code S with the combined rates for PST and GST.
My work-around for PST chargebacks to get reimbursed, is to create a PST that requires reimbursement Item under Non Inventory Parts and record the PST paid that is reimbursable to that Item and select that it's billable.
And of course, we're back to the old argument about why are we charging GST on PST, we are NOT doing that, we are charging GST on landed cost which was PST we were charged and can't pass along as it's an end user tax. So charge GST on the PST and recover your costs. And yes, the GST you charge will be higher by the amount of the GST on the PST. That's OK. I've written an article for Intuit ProAdvisor Newsletter that will explain it, but am waiting for approval and hopefully for them to fix the Time and Billing so it sucks the landed cost of PST in with the cost.
Remember the PST paid isn't recoverable, it's an expense, and that includes adding the cost of PST to expenses, cost of goods sold, and to fixed asset purchases. The PST won't pass through with the cost of Fixed Assets if you use the Fixed Asset Item type to keep a list of your asset costs. Check those calculations carefully to make sure you're adding the PST to the cost because that's a landed cost for tax purposes to add to your UCC schedules. Amend the Fixed Asset sub-ledger to pick up those costs or your register for costs won't reconcile to your fixed asset cost register.

Oh yes, you will still be able to purchase exempt supplies if you re-sell, and you'll need a certificate to do that. The only exemptions will be Federal Gov't and First Nations, and I'm not sure if that includes bands that have a treaty.

First Nations will be able to purchase exempt if they have the products delivered to the reserve, and they have to have a card. They can't buy exempt in your store unless it's on a reserve like the mall in North Van.

The Provincial and Municipal gov'ts will pay the tax, no exemption. Don't give anyone an exemption unless you get a copy of a certificate exempting them.

You'll be required to self-assess if you purchase products that are affixed to property at their cost when you install them, as before, but the timing may have changed. Didn't really understand how this has changed, but it has.

The 15 year old will be able to purchase adult size clothing, but there's no explanation of the documentation requirement yet.

And.. get this, your 6 year old, there's no age exemption as yet, can download games to your iPhone thru iTunes, and you may have to self-assess on the digital product. Personally, same goes for Netflix.

And wholesalers, you don't have to register, BUT if you sell anything to employees, you'll need to register, or stop selling to employees and that includes shareholders/owner/managers.

This is a huge CASH GRAB. And it's not the same PST in BC we knew and hated, it's a whole new game and I've not covered everything there is to know by a long shot.

As you find out stuff, post it here, and let's share what we learn. Hopefully we can avoid those 25% penalties for not complying. and there are some 100% penalties too.

If you haven't yet registered, or your clients haven't registered yet, and think you might have to, please make time to do that soon before their systems get overwhelmed with later registrations.
Registering is not the same as having an account #. You may find you need an account # even if you don't register, in order to self-assess or for some other reason I haven't yet figured out.

Here's the link to subscribe to updates and today's update was about telecommunications. You may not think that applies to you, but the definition of telecommunications includes anything digital, like downloads, Software as a Service (Saas), Norton Anti-Virus software downloads, Netflix, Gaming APPs, all the APPs on your iPhone or books you download on your book-reader, though those may be exempt under books...but only if they meet the criteria...and not sure what that is yet.
http://www.sbr.gov.bc.ca/msbr/whats_new/consumer_taxes/whatsnew.htm

The politicians are debating the 400 amendments to the PST Act in the house this week. If you have concerns with what I"m sharing, contact your MLA and discuss the legislation with them.

Apparently these aren't all of the amendments, and they have the right under the law, which passed last May, so it's not going to die on the floor, to amend retroactively until 2016. I heard there may be as many as 200 more amendments to the Act, and we don't have the regulations yet, we just have press releases and notices that may or may not be the final word.

At the bottom of this webpage (link below) there are contact links and more info and webinars, etc.
http://www.sbr.gov.bc.ca/msbr/whats_new/consumer_taxes/whatsnew.htm

Ten years ago, I signed up as a junior member and registered for a program I thought would be interesting, after one meeting of the Canadian Association of Professional Speakers, www.canadianspeakers.org  Vancouver chapter. Jody Urquhart www.idoinspire.com a fellow Toastmaster had dragged me along to a meeting because she needed a financial wizard to help her organize their next conference.

The one year program was led by Geoffrey X Lane (www.geoffreyxlane.com), and it was to be about the business of speaking; Fast Track was a year long program. Once a month on a Saturday afternoon we learned about the business of speaking; hearing from a dozen of the leading experts from all over the world. I signed up, not to be a speaker, but to learn about the business because I had clients who spoke.

I participated in CAPS life that year, volunteering to help with the finances and planning/organization of that year's CAPS conference as it was being held in Vancouver; working with Jody and Greg to facilitate an amazing conference. My biggest learning, how to deal not only with boxes and boxes of books that don't sell but everyone thinks they will, but how to deal with GST and PST on consignment sales during a trade show. What a pain that was. And thank goodness for e-Books! I learned most books aren't profitable, mostly they are about marketing, plus some ego and flash.

By the middle of that year, 2003, I was being encouraged by my Fast Track class to speak up about what I was passionate about, which was the fair application of administration of personal tax credits by CRA, and keeping records using technology to be in control of your money.

Ten years later, I'm speaking and writing about both of those topics. Go figure, money and tax...both topics still have legs. I've had so much fun, learned so much, met so many great people, renewed friendships and developed new working relationships I never would have if I hadn't taken that course. And, along the way, out popped the brand of TaxDetective, many thanks to Jane Atkinson www.speakerlauncher.com plus personal development coaching from some incredible coaches, Teresia LaRoque www.teresia.com and Cheryl Cran www.cherylcran.com and Carla Rieger www.carlarieger.com made a huge positive influence on my life.

Next time you're wondering if something you are thinking about joining will be right for you, consider what you're passionate about, and how could what you're considering help you become more involved in your unique passion. It's unique because you own it. My passion? People's rights about the rules. I know it sounds strange, but if there are rules, then they should apply equally to everyone and everyone should have equal access. That isn't always the case when it comes to Income Tax in Canada.

Thanks to the members of my graduating class of 2003, CAPS Fast Track, even though that program didn't survive, we all did. I salute every one of you who has made your passion your life. Time sure flies when you're having way too much fun, doesn't it?

Today we were supposed to cover Meals, Home Office and Vehicles.  That was too ambitious. We got through where do the rules come from, what are the over -riding rules like what are the reasons we can deduct, and does it have to be reasonable, and covered meals and home offices, but vehicles will have to wait for next week.

If you want to purchase the video for each week, they are available on my website, if you're not a member of IPBC, and if you are a member of IPBC, they are available at a discount via the www.ipbc.ca member Links portal under Educational Discounts.

Q: Can the 50% HST be booked to the meal expense rather than the drawings account?
A: No, it can't, not if you want to reconcile your records with the T2125 return. This is a self-employed workshop, not a corporate one.

Q: Can you show us how to do the JV for the % that is for personal use of home office?
A: Yes, I did, and when you purchase the video, you'll be able to view how I entered the home office costs, recorded the personal element and reconciled that to the T2125 schedule

Q: You can't create a loss with home office expenses? What do you do with unused home office expenses?
A: No, you can't create a loss, but you can carry a loss forward indefinitely. CRA doesn't track this carry forward in My Account as it's dependent on deducting it against the same business. If you've changed businesses of course it falls off the table and they don't track that.

Q: Does this mean for the company office party that the company can only claim 50% as well?
A: There are special rules, more than the rules we covered today, and one of them is that yes, you can in certain circumstances, for a limit number of events, write off the company Christmas party.
If you want to review the video, you'll find there are links to the Income Tax Act for exceptions and that is one of the exceptions. That doesn't mean you can write off the weekly pizza party at 100%, or even 50% unless it's for business purposes and it's reasonable in the circumstances.

Remember how at the beginning I showed a disclaimer.  This session was not advice. This session was to encourage you to go look up the rules, and to get comfortable with where to find those rules in the ITA. 

Save this link to S. 18 http://laws-lois.justice.gc.ca/eng/acts/I-3.3/section-18.html
and

If you don't have a subscription to my TaxLinks Pro Portal, it's $30 for a year to September 30, 2013, renewable on that date annually. IPBC members will find it's offered at a 10% discount by visiting the Member Links and drilling down to find the Educational Discounts.

The tax rules change all the time, as do how those rules are interpreted by the courts in Canada. The rules are subject to the facts, in light of what those rules are at the time and also what the courts have set as precedent. You can find all the rules, and the court cases at www.canlii.org

Keep in mind that depending on who you are, as in are you self-employed or an employee of your corporation, that different rules apply from different sections of the Act.

The toughest part about income tax is that it's required of all Canadians that they know all of our laws and apply them appropriately. Given what's involved in the Income Tax Act, that's a tough act to understand and apply. Hence the call by many professionals for simplification.

Just these two subjects, for a small sub-set of tax payers, meals and home office took an hour and we really didn't delve into every corner of what the laws are. For example, I didn't mention the Christmas party exception, but then that's more likely a corporate situation, not a self-employed one, unless the self-employed person has employees, and then those rules apply.  Not easy is it?

Funny thing about that old parlour game where you whisper in someone's ear and they pass it on, and they pass it on...

http://business.financialpost.com/2013/02/19/wide-world-of-help-for-rookies/

I'm pretty sure I never said 'most' business owners can't add.

I was talking about a client who was freaking out, in otherwords, having a math meltdown and it was all about having to do complex calculations to figure out how much the sales tax was that was included on the hotel and airline billing in order to post his expenses to obtain reimbursement, net of GST/HST.

It's about time CRA did something with the hotel and airline billing disclosure requirements as they are atrocious.  Everyone knows it, we all put up with it, but let's not beat up the small business owners for not being able to do basic math in the process.

Sigh... anything to sell a paper...

But the reality, it's quite one thing to claim you are all about helping families and when in receipt of adjustment requests for multi-person, all related persons returns to claim for the past ten years if you didn't make a claim you were entitled to make, to rip apart the bundle requesting simultaneous transaction processing, making it impossible due to the circular nature of those requests for anything to be processed correctly.

http://www.cra-arc.gc.ca/nwsrm/rlss/2013/m02/nr130218-eng.html

Today, it just so happens I got organized to send a letter to the Minister of Revenue, and copied my MP, as well as the local taxation office.

February 7th, I attended a CRA / CGA liaison meeting hosted by the Surrey Taxation Office. At that meeting, my very serious question about why CRA doesn't respect professionals who prepare tax returns for families was shaken off like it was just me that had a problem with their policy of only accepting for processing, tax return adjustments from individuals. Nothing could be further from the truth. It's very common for professional preparers to warn their clients that it may take multiple attempts to actually achieve the desired result. They should expect that their adjustment requests will only be partially accepted because CRA refuses to simultaneous adjust multiple related persons tax returns in one sitting. This in spite of a request from their tax professional in writing, hand delivered with a bundle of documentation, pleading for this.

This in spite of 21 personal tax credits which require order of operations to be applied to them, and ten of those credits being apportionable, shareable or splittable between family members.

When submitting adjustments, the processing of those adjustments is taken very seriously, and I appreciate that you wouldn't just accept at face value that there is going to be apportionment of amounts. But if you don't process those requests together, in spite of the fact that you've submitted a cover letter requesting such fair and equitable treatment. On the surface it seems very reasonable to assume this would be acceptable to ask for this.

But no, CRA's mailroom has instructions to completely ignore all requests for simultaneous processing of taxpayer adjustments by family groups. They are instructed to rip apart such bundles and send the adjustments off in 50 different directions. One can just sense the glee eminating from the mailroom at such requests. The chance to remove giant paper clips, string binding, giant staples, red ribbons... it must feel like Christmas unwrapping those packages.

So much for Harper's grandiose claims that families are getting a fair break on their taxes. Just don't attempt to adjust those taxes if you missed a claim, expecting you'd actually get those requests processed in a timely manner. By the time you've re-submitted your claims every few months, each time amending the claim for what they managed to process this time, one would think there was something wrong with you or your professional.

Oh I see, if we make the tax professionals look like idiots, and get all their clients mad at them for all these incorrect re-assessments, and more time and energy required to re-submit claims, maybe they'll stop sending in those adjustments and leave us alone.

Remainder of questions from Part 2/4 on Keeping Records: Non Corporate Business - business assets was the topic of week 2

I know there were some people who really were not comfortable with the discussion about acquisition cost, amortization and disposition of assets when we delved into how to complete the tax return schedules for UCC and capital gains on depreciable assets.  Remember there are no capital losses on depreciable property. The video for Part 2/4 does cover this topic and I'd recommend watching the video again, or taking an advanced course in taxation.

If you aren't sure how capital gains and UCC work together, I'd recommend reading the T4037 Capital Gains guide, focusing on how proceeds are divided up between what's capital and what is recorded as a reduction of a UCC pool, and how that might create either a terminal loss or recapture.
http://www.cra-arc.gc.ca/E/pub/tg/t4037/t4037-e.html

Q: How would goodwill work?

A: Goodwill is an eligible capital property and the calculation for taxes can be found on T2125, linking to a separate schedule which shows the basic calculations. The purchase and sale of goodwill isn't covered in this course as it's pretty advanced. If there is goodwill, it's best to consult an expert on the subject, or read up on it at the CRA website, and there are a number of IT Bulletins to supplement your reading on the CRA website as well as the CCH Preparing your Income Tax book,
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/rprtng-ncm/lns101-170/127/bsnss/menu-eng.html

Q: Can you go over your method of booking a vehicle purchase in QB with an unknown business use?

A: You'll find an in depth coverage of that topic in the HST Quick Method video. REmember that you can record an ITC on CCA for capital assets under the Quick Method, so this would be logical to include in that workshop.  The video sells on my website, under the Master QuickBooks tab in the eCommerce section (tab on the top of every page) www.taxdetective.ca.
It's 50% off for IPBC members. Members can drill down to Educational Discounts under Member links on the www.ipbc.ca website.

Q: Why do you use the vehicles sheet instead of using the CCA schedule for Class 10?

A: Yes, when you have three dump trucks, with no personal use element, I would definitely put them through the regular asset classification format, rather than on the vehicle schedule. The reason for using this schedule is to assist with the personal % of use and to track separate pools for each Class 10.1 asset.  It's also possible to use separate vehicle schedules for each vehicle if you're tracking the cost of each vehicle separately, and linking them all to the T2125 or to multiple forms, for example, you might have T777's for employee expenses, T2125's for business and T778's for rental and be splitting up your vehicle use into various categories by % of use.

Q: Will the QB data file be available?

A: Yes, it's available, and I"ll update it next week for current transactions. There weren't many transactions this week, so I didn't think it was worth doing.

Here's where you can find the links for both the QuickBooks and Quicken data files:
http://www.taxdetective.ca/keeping_records_business.html

Q: How does Accumulated Amortization differ from Amortization?
A: Accumulated Amortization is an offset to the Cost of an asset. This is where you record the other side of the expense (debit) as a credit to reduce the cost. We call the net result, Cost less Accumulated Amortization "Net Book Value"

Q: How do you use the disposal row on the UCC schedule?
A: We answered this with an example in the webinar. We record the Proceeds on disposition, but only up to Cost.  In other words, if Proceeds are higher than Cost (adjusted cost of course), we only record Cost. If there are other assets in the pool, and this reduction in the pool generates a negative number, we record a Recapture. If there are no assets left in the pool, we would record the remainder of that Class of assets as a Terminal Loss. That's a very simplistic representation of the rules. Really, this topic is huge, it covers several chapters in the CCH Preparing your Income Taxes book, and there are close to 100 IT bulletins and guides dealing with CCA claims and the calculation of UCC for tax purposes.

Q: I still don't get it. The proceeds are written off against the whole pool.
A: Yes, the proceeds, but only up to the amount added to the pool originally, reduce the pool.

I'll be answering more of the great questions from this week's workshop later today. Check back with me.

Keeping records for business assets revolved around reconciliation of NBV to UCC, and how those tax schedules and the records should be kept reconciled.

We used Class 50 for computers to explore acquisitions, dispositions, claiming UCC, terminal losses, recapture and capital gains when the proceeds are more than cost - and on depreciable assets, that probably doesn't happen all that often, but if it does, it's necessary to record a capital gain. We touched on vehicles and Class 10 and 10.1 and how to enter ITC's on CCA.  Remember there's another video on HST for Quick Method that covers this topic very thoroughly and there's a sample QuickBooks data file you can restore to review the transactions and how to set up the Items and Sales Tax Module so it works to report at period end.

Remember that when proceeds are less than cost, there's not a capital loss, just a drop in the amount of the pool to claim CCA on next year.

The video is up on the shopping cart, and remember, if you're an IPBC member, go sign in to www.ipbc.ca and go through Member Links drilling down to Educational Discount products to purchase your video for $5.00 with your promo code.

I've redesigned the IPBC member shopping list page and if there are any links that don't work, please don't hesitate to drop me a note and I'll fix it as soon as I can.  That's where you'll find the HST Quick Method video I mentioned as well as the bundle of products from October 2012 (member price is $145) non members $290.

Q&A I'm going to cover in a separate topic after I take a break, likely tomorrow.  Had a great visit with Tena, we drank tea, ate oranges, and then took the dog out for a walk. After that we tested out my Intuit GoPayment thingie that plugs into your iPhone or iPAD and played around with QuickBooks Online Plus Accountant. What else would a couple of accounting geeks do with their time I ask you...

Strong urge to nap or eat chocolate after the day today brought on by contemplation of CCA and UCC versus NBV...if you're feeling the same way, that's probably why.



Testimonial about this week's webinar, Part 1 of 4 part February 2013 series:
"Eileen’s presentation, Wednesday, was very enlightening and engaging.  There were many takeaways but one that stood out to me is that by reconciling personal books along with the various business reconciliations, everything is wrapped up neat and tidy. 

Today's workshop was very well attended. I glanced up at the end and noticed there were 44 participants on the call.  Very few questions though, must have been because everyone knows there' so much to know... lots of content and concepts presented in one hour and I'm sure everyone will want the recording to play it again. If you attended it's available for 48 hours for $5.00 with the promo code, and if not, purchase the recording directly from my website.

If you haven't already, sign up for next week at www.ipbc.ca

I mentioned that the sample data files will be available under the eCommerce tab at Keeping Records  www.taxdetective.ca. I'll be loading them up in a few minutes.

Here are the questions and answers for today:

Q: Why would you not just set up business accounts to post the amounts straight there instead of using a cash clearing?

A: If you're a self-employed business person, you're likely living out of your personal lines of credit and credit cards. I like to set up a separate set of books for the business in QuickBooks, and keep track of the personal aspect of our family finances in Quicken. I don't want to miss out on any deductions, so I record all the business purchases and business deposits to the clearing account in Quicken, then check to make sure I've captured all of those same expenses and deposits in QuickBooks using a mirror image clearing account in QuickBooks. Every month I find that I have missed something that I wouldn't have caught if I didn't have this little control system in place. Plus I can report to my spouse on how I'm contributing to the household this way as the net of this clearing account is my contribution to household cashflow.

Q: Are you using Clearing instead of Owner's Draw? Are they the same?

A: No, I'm using Clearing in addition to Owner's Draw. They are not the same. The Owner's Draws may not reconcile to the Clearing Account in Quicken. Let's be clear, I'm doing this to reconcile to the money. If I make adjustments later, I may not always go back and adjust the money in the personal records as it just isn't as important to do that unless there's a burning desire for incredibly accuracy, which given that most people don't even record their personal financial transactions, I somehow doubt that's necessary.

Q: Are you able to share the sample chart of accounts you set up?

A: Yes, you'll find more information and sample data files under the eCommerce tab, where there is a separate page called Keeping Records.

Using Internet Explorer because it has a SAVE As feature, save the file to a folder and then open QuickBooks to restore from *.QBB or Quicken to open the data file. 

Noticed something interesting while perusing my new version of the CCH Preparing your Income Taxes book that arrived yesterday.  There are two different charts with Km rates. One for tax-free km's paid to employees, the other for a variety of other purposes. The rates are NOT the same.

On page xxiv the chart for Automobile Rates and Limits for tax free allowances paid to employees for 2013
54/48 cents over 5000 km's for all provinces (last year 53/47)
58/52 cents for Nunavut, Yukon and NWT (last year 57/51)

Here's how CRA presents the same information (not in a chart so it's more difficult to compare):
http://www.cra-arc.gc.ca/tx/bsnss/tpcs/pyrll/bnfts/tmbl/llwnc/rts-eng.html

Notice how the rates increased a penny in 2006, 2008, 2012 and again in 2013?

But on the next page, xxv, (or see the link below) mileage rates for northern residents deductions, moving expenses and medical transportation services have declined 3 cents.

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns248-260/255/rts-eng.html

In 2011, the rates are different for each province, and for BC they were 52 cents, but in 2012, they've dropped, to 49.5 cents.

Humph! so much for the penny dropping. Here we have half pennies on the decline.

Notice that they don't give the rates for 2013 until 2014. Why? Because you can't claim your medical or moving or northern resident claims until spring of 2014 for 2013 when you file your return for the previous year.

So yesterday, I received a message to call back the PST info person. I had written in to get advice on whether or not the products on my website would be taxable, or not. Still don't have an answer, but at least I know why. We're being held up by the politicians who are reviewing the new laws and regulations before passing them.

http://www2.gov.bc.ca/gov/topic.page?id=0CE539AD86F44033A1C531B9B597EA86

Here's what we do know. There are bulletins but the laws and regulations, where we'll find out what the rules really are, aren't passed yet. They've been drafted, but until they are law, we really have no clue how to interpret the new law. We can look at the old rules and interpretations because those may give us a clue, but those aren't going to help in some ways because technology has come some a long way in such a few short years. When PST went away, I wasn't using technology available today to create products I couldn't have dreamed up back then.

You'd think it would be easy. Today I sell is recorded webinars, eBooks, and templates that show how to calculate and reconcile the books and taxes that I've created in Word, Excel or OneNote.

They could tell me, based on Notice #18, that my live presentations, as in you attend a live presentation of almost any type, that wouldn't be considered PST taxable because it would definitely be exempt. On those I'd only have to charge GST. Same with my accounting/consulting/tax services.

But, once that live presentation was recorded and uploaded for sale as a downloadable product, it is no longer a live event, so it doesn't meet that exemption any more. But wait, there are other exemptions.

So you'd have to look at the exemption for "qualifying educational ..." and they don't yet have a definition for that. So until they decide whether what I'm doing qualifies under that definition, I'm in limbo on the re-sale of a live event. Do I qualify or don't I? My products are educational, at least I think they are, but will they meet the definition? No idea.

Not really sure about the templates as they would fall under that same "qualifying educational ..." or my eBooks, because they are PDF's whether they are qualified as exempt either, as we aren't sure of the definition of an eBook is.

Sigh. I can't imagine this is easy for the bureaucrats writing this new law and regulations either. The old law was quite simple, and the complication came in the interpretations of the law, which weren't law, and were incredibly specific about all sorts of things. It's supposed to be easier to interpret, because the new law and regulations will include these interpretations, making them accessible but not necessarily easy to understand and follow.

I'm already wishing we hadn't switched from HST to GST and PST. Not only will I have an increased cost of operating, but there will be a whole new change in everyone's procedures. Coupled with the loss of the penny, that's two fairly major changes in one spring. Welcome to my spring.