Gas Refund via Patronage Allocations (for Sole Proprietor)
The instructions state: "If you are claiming some of your purchases as expenses against income, then you must include an applicable portion of the allocation on your income tax return". Plus "If registered for GST, the portion of GST related to business must be included on your GST return."
As I understand it the cash monies I received are not taxable but the business portion of allocation is income. Also must pay back the ITC received on the business portion.
Cheque received $103.51
included GST refund of $11.34 ($10.46 is Bus. Portion)
Allocation was $233.74 (of which $215.51 is business)
Firstly I must deposit the money into my cheq acct. This is how I assume I should do it?
DR Cheq Acct $103.51
CR GST Pd on Purchases $10.46 (Bus. Portion)
CR Owners Equity (????) $93.05
Secondly the business portion of allocation is to be documented as income as I get a T4A for $233.74 which I include on line 30 (taxable amt of $215.51 and nontaxable amt of $18.23). Thereby on Line 130 of the T1 general "other income" it shows $215.51 (as the personal portion is not taxable).
I'm sure what I should DR (make an acct under other assets called Equity Shares????) and CR a revenue acct for allocations???.
DR Equity Shares (??) $215.51 (Bus. Portion)
CR Other Revenue(Allocations)(??) $215.51
Any clarification/thoughts/input would be appreciated.
PS - I so love your website and all your help. You give answers to questions I cannot find anywhere. Thanks a million.
I am very busy the next week or so ... sooooo I'm posting your question without a response at this time. I am hoping some of my visitors may be able to help you out. If not, I will try to fit in time to respond shortly