Pricing Part 2 - T2 & beyond

Tax Topics
#1

thank you for all your responses on pricing strategies for t1 for 2023

If you don’t mind sharing would also like to know:

  1. T2 $0 return
  2. T2 very simple return
  3. T2 more complicated

I usually do year end financials with these returns, so i price accordingly

  1. T5 slip - one
  2. T4 slip -
  3. T3 return - for decease client

thanks for any insight
cheryl

#2

For new T3 returns, I now estimate that it will be at least $500 for even the most simple T3’s. The reason is that you end up spending time explaining what a T3 is, how it works with the final T1, when it’s due, the clearance certificate process, etc. You have to get authorization with CRA (not always an easy thing). You also end up sitting through an explanation of all the family dynamics.

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#3

Thanks for that Kevin. I have been charging $350, but I agree about all the time that is spent, so I’ll provably increase my T3 price this year.

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#4

… and this is after someone (aka @kevin ) has already applied for a T3 account and uploaded the supporting documentation to the CRA. :wink:

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#5

I charge $100 for rolling over blank tax returns (I have two that are inactive holding companies with no transactions each year), Generally a minimum of $600 for very simple T2’s (or family members that get a discount) but more usually in the $900 - $1,600 range. I only have about 20 T2 returns over the course of the year - 7 of which are for myself and immediate family members. I only have 4 returns (plus my practice corp of course) at the moment that are not relatively simple personal service corporations or investment holding companies. Those are $1,350 to $2,500. I don’t do T3’s at all.

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#6

Yes, @snoplowguy, regardless of doing all the proper things, estate executors are often “babes in the woods” as far as estate administration goes. A lot of time is spent in education sessions and advising the executors where and why they need a lawyer. Return preparation is the easy part!

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#7

thank you - i agree with ‘extra time’ explaining

#8

thank you - this helps!

#9

Filing a T2 is generally the last step in a “corporate year-end engagement”. That is, a lot of work goes into gathering documents, reviewing corporate records and bookkeeping, and preparing a reasonable trial balance (if not full formal financial statements). So, unless it’s a nil return, I won’t file a T2 without doing all the prep work. Thus, I generally charge:

  1. $200 for a nil return; less if it is related to a corporate client for whom I am doing a full year-end engagement.
  2. Minimum $1,000 for a very simple T2 engagement without formal financial statements.
  3. Average $1,800 for a typical corporate year-end engagement.
  4. $35 per T5 slip if done in conjunction with a year-end engagement; $60 per slip if done “stand alone”
  5. $60 per T4 slip; discounted if multiple employees for that employer; $99/hour for extra work (i.e. calculating/adjusting for taxable/non-taxable benefits, etc)
  6. As noted by @kevin and @snoplowguy - an estate T3 generally requires much investigation and additional work, with a high risk of error/omission. For a very simple T3 with no slips I charge minimum $300. On average, it is about $600.