123 Olivetree Street
Toronto, Ontario
M2C 3T5
Dear Mr. Goulet:
I form received and reviewed your request, the earn direct to you from CRA and the copy of T776 (Statement of Real Estate Rentals). From what I understand you have a limited knowledge of accounting and tax revenueation, and you do exclusively of youre planning and tax preparation on your own. As per the letter from CRA, you have 30 days from the date of the letter to respond to them. Since, I have only minimal nurture of your situation; I will use this data to explain the problem to the best of my knowledge.
This situation is not that unique, there argon several people in the same position as you are right now. The best solution that I bum recommend is that you use a professional to prepare your tax returns, so that you do not find yourself in this office staff again. You can still keep track of your records, but as for preparing your tax return, if you use a professional, they will be trusty to accurately prepare your return and can help you step up if the auditors request to review your records.
As for the adjustments that CRA wants to make to your current return, the make sense of $310,000 that you reported as an other depreciate or procure of property cannot be recorded as an expense.
That amount is considered a capital expenditure; generally anything recorded as an expense is utilise up during the year. The building purchase is not something that is used up over the year, and although you would consider it an expense to running your business, it is rattling the entire reason for your business, so it is considered an asset to you. There is another(prenominal) form that you would use to record the addition of this purchase, you would have to draw up it into the correct variety or group and it is depreciated by a certain percentage each year. The amount of depreciation is called not bad(p) Cost Allowance, and then the remaining balance in the class is called Undepreciated Capital Cost. You are...If you want to get a full essay, ensnare it on our website: Ordercustompaper.com
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