Thank you so much for pointing this out! I think I've been overthinking the "reimbursement" aspect. Since I'm essentially the same tax entity as my business, it makes more sense to just claim the mileage directly on my Schedule C for 2024 rather than worrying about formal reimbursement. This actually simplifies things a lot for me. I've kept detailed logs with dates, miles, and business purposes for all those December trips. Is there anything special I need to note on my tax return about this, or do I just include all those miles in my total business mileage for the year?

You've got it exactly right! Just include those December miles in your total business mileage for 2024 on your Schedule C. There's no special notation needed as long as you have your mileage log with the dates, destinations, and business purposes documented. The key is keeping that detailed log in your records (don't submit it with your return, but keep it in case of an audit). Make sure your log shows the dates were in 2024, and you're good to go. This is actually the most straightforward approach for a single-member LLC/sole proprietor.

Do you use any app recommendations for tracking mileage? I've been doing everything manually and it's such a pain.

My health insurance is still through my employer, same plan as last year. But you know what, I'm going to go back and check those health insurance questions again to make sure I answered them the same way. I honestly tend to click through those sections pretty quickly since nothing changed, but maybe I did check something different. Thanks for the suggestion!

Not OP but this happened to me! I had 8 weeks of unemployment and had NO idea they barely withhold any taxes. Got absolutely wrecked at tax time. Now I always select the maximum withholding on unemployment.

No unemployment for me - been at the same job the whole time. But that's good to know about unemployment withholding being low. I actually might have some temporary layoffs coming up later this year, so I'll definitely remember to adjust the withholding if that happens. Thanks for the heads up!

No T5 slip yet since the film just hit festivals and hasn't had any commercial distribution. But that's good to know for the future! I am in Ontario - is the provincial credit something I apply for directly or does the production company handle that too?

The Ontario Film and Television Tax Credit is also handled by the production company, not individual investors. Similar to the federal CPTC, it's designed to incentivize production companies to create content in Ontario. As an investor, your tax benefits come primarily through how you classify your investment and any income it generates. When the film does eventually generate revenue, make sure the production company has your current address to send any T5 slips. For now, you'll just need to report the investment itself as we discussed above. Keep good records of all your investment documentation - if the film becomes commercially successful or if it fails entirely, the tax implications will differ.

You might be able to claim a capital loss if you can demonstrate that your investment has become worthless. You'd need documentation showing the production has been abandoned or the company has dissolved. Typically, you'd need to file an election under subsection 50(1) of the Income Tax Act to deem the investment disposed of at the end of the tax year. The CRA will want evidence that the investment has no reasonable chance of future value. A letter from the production company stating the project has been abandoned would be helpful.

That's a really good point about banking. Did you have any issues with payment processors too? We'll be using Stripe and PayPal for most client payments, and I'm wondering if there are any special considerations with a foreign co-owner.

Stripe was actually fairly straightforward for us. They required identity verification for both owners, but having a US-registered business with a US bank account made it workable. My foreign partner had to upload his passport and proof of address, but no major hurdles. PayPal was a bit trickier because they wanted a US phone number for verification for both owners. We ended up using my phone for business purposes and adding him as an authorized user rather than setting him up with full owner access. Not ideal, but it worked. Just make sure your operating agreement covers how payment processors are handled so there's no confusion about who has access to what.

Do you use any specific tools for managing the partnership agreement and financial distributions? We're setting up with a partner in Malaysia and realized we need better tracking for partner draws and tax withholding.

Thank you for this tip! Is there anything special I need to enter in my software for the supplemental annuity, or do I just add it as additional taxable income from the pension?

You should enter it as additional taxable pension income, but make sure you're not applying the simplified method calculation to this portion. Most tax software has separate entry fields for fully taxable pension income versus partially taxable amounts that need the simplified method. Just be careful not to mix them together.

I've had several clients like this. You need to treat each pension separately. The railroad benefits follow RRB rules with the Tier 1/Tier 2 distinction, while the private company pension follows regular IRS rules for qualified plans. You'll have both an RRB-1099 and a regular 1099-R. Don't combine them when doing the simplified method calculations.