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Hello,
I had a small question I hope you can answer. I had some checks that
were made payable to our family company, (corporation). These checks
were actually mine so even though they were made out to the company,
I had them endorsed to me so I could deposit them directly into my account.
Until recently I used to get payments for my part-time business made out
to the company, now directly to myslef. The problem is I had some older
checks that were still made out to the company but I wanted to deposit
them directly in my account, hence the endorsing. So I was wondering
whether what is to be shown during tax time. The checks were from
a US company, if that makes a difference.
Thanks in advance for any help,
Bxxxxxxxxxxxx
=============================================
david ingram replies:
You can have a corporation and a proprietorship at the same time.
The problem is that when you do, stuff tends toi get mixed up and cause problems.
Sounds like you need to do a proprietorship return on schedule T2124 which ataches to your T1 return and a T2 Corporation return as well. (CANADA)
Only you can comment on whether the money should have belonged to the corporation or yourself.
The source of the funds - i.e. - US, Canada or Australia does not matter.
Your bank has likely erred though if they allowed you to deposit a cheque made out to a Company into your personal account. It has always been my experience that banks would not accept a company's endorsing the back of a check and deposit to another account. However, this has likely gone sideways with multi-branch banking anywhere.
I will throw this out to the group and see if anyone else has an opinion.
And now that I looked up your email address and recognized that you are likely in Colorado, my advice remains the same. You will do a schedule C which you attach to your 1040 and an 1120 for the family corporation unless it is a trust.
Hope this helps
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