Robin F (tamago23) wrote in tax_prep_canada,
Robin F

I wish I could afford an accountant

My husband and I started a home business and have been running it for two years now (as a sole proprietorship). We haven't filed taxes for 2006 because we weren't sure how to do them, and as our business is barely getting by, we aren't able to afford an accountant. (At least we've been keeping track of the receipts and entered them into QuickBooks so they're accessible, though.)

I've recently decided to try tackling the taxes, but I'm finding that I'm totally lost. I've read the guides on the CRA website about business income, but I just don't get it. For example, in the guide, at one point it says that you need to fill out Form T2124, Statement of Business Activities, and Form T2032, Statement of Professional Activities. But at another point of the guide, it uses the term "or" instead of "and" when referring to the two forms, which is confusing; am I supposed to fill out both of the forms, or only one? If I only need to fill out one, how do I determine whether our business falls under the category of "business", or the category of "professional"?
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