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Can you explain the difference between capital and revenue items of expenditure and income?

How specific do I have to be when I submit my income tax?

  • Sorry, I don't know if "submit my income tax" is the proper wording - But I'm 17 and new to this. Also, I'm in Canada in case that makes a difference. I've posted several questions about this on Yahoo Answers just for some convenient help.. I will get a proffesional soon. Anyway, I'm 17 almost 18, and I can very well make up to $80,000 by the end of this year. (I haven't made it yet, but it's extremely possible) I spend a lot of time and hard work, doing what I do, and it really bothered me when I realized I'd have to pay tax, and that almost 40% of what I worked hard for will be GONE because of taxes.. Anyway, what I do isn't necessarily a full time job. I'm still a student and I doubt I will be doing this for years to come. Probably the next 2 years MAXIMUM. Anyway, it's hard to explain, but I sell things on eBay - things that I buy low and sell high. I get good prices from people, or talk them down in price in exchange for other items... Anyway, the main point of this question is HOW specific do I have to be when I file my taxes next year? Would I have to describe each and EVERY item I sold? Like "New York Yankees Jersey Size Medium" or "Nike backpack" ?? Or could I simply use terms such as "jersey", "backpack", "jewelry", etc.. Do you know what I mean? Aren't I gonna have to describe what I sell, and specify a few, if not ALL things I sell? Sorry I am very ignorant and new to this

  • Answer:

    Again, all the information you are looking for is on the CRA website: http://www.cra-arc.gc.ca/tx/bsnss/tpcs/slprtnr/menu-eng.html

fnsalkfs at Yahoo! Answers Visit the source

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CRA does not want these kind of specifics. They are happy with totals. Total amount of sales. Total cost of goods sold, Total for each expense line. Go to the CRA website and download form T2125. That's the information they are looking for. Just the amount for each line.

Fred S

You may want to keep an itemized record for your own purposes, but the CRA does not require it at all. They'll want to know just the bottom line - income, taxes paid (in your case none), etc. If you were employed with an employer your end of year tax statement (your T4 slip) from your employer states only the summary - Amount earned, federal tax deducted, CPP, EI contributions, etc. They don't state your hours worked, your job title or even when you started and when you left their employment - just what taxation year it's for. You're not the first young entrepreneur out there. The Canadian Revenue Agency sees weird things all the time and a large income is by no means suspicious of illegal activity especially when you claim it on income taxes. If anything, not claiming it would be far more indicative of illegal activities.

malica

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