October 19th, 2012 by Questions
how do you calculate seasonal self employed payments as i need to put money away for winter months
Posted from: Ontario
October 19, 2012 at 8:56 pm, A licensed trustee said:
Seasonal income is treated as any other income – you are permitted to deduct the same expenses you may deduct for income tax purposes, and of course you can deduct your icome taxes too – assuming you’ve paid them.
The way the surplus income rules work now is that you report for 7 months and your trustee determines your average income for the period. If your average income exceeds the surplus threshold by $200 pr more then you are required to make the surplus payments and your bankruptcy will be extended. If when the average is calculated your income is less than $200 over the trheshold then you bankruptcy will end more quickly and you are not required to pay any surplus.
When you speak to a trustee remember to ask about the averaging calculation and factor in which mnonths of the year will be used for your 7 month period.
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