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Gondaliya CPA

Corporate Tax Filing Experts

Tax Accountant for Appliance Repair Businesses in Ontario and Across Canada

We count the parts riding in your vans and bring them onto the balance sheet as ITA section 10 inventory at the lower of cost and net realizable value instead of expensing every purchase the day it lands, age the manufacturer and extended-warranty receivables that slow-paying warrantors leave outstanding, test your technician arrangements against the RC4110 factors before CRA does and issue a T4A wherever a genuine subcontractor is paid more than $500, pool your service vans in Class 10 at 30% with the mileage log CRA asks for first, and write off small tools in Class 12 at 100%, diagnostic and shop equipment in Class 8 and dispatch software in Class 50. Whether you service washers, dryers, fridges and stoves in customer homes, run manufacturer warranty calls or hold commercial kitchen service contracts, we handle the 13% HST on every service call fee, diagnostic charge, labour hour and part, the technician payroll with WSIB, the TSSA and refrigerant certification costs, and plan the salary, dividends and eventual sale of your company — with AFFORDABLE flat fees.

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AFFORDABLE Appliance Repair Tax Accountant

An appliance repair business runs out of vans, and the money hides in two places most owners never look: the parts riding in those trucks, and the warranty claims nobody is chasing. Van stock is real inventory under ITA section 10, carried at the lower of cost and net realizable value and counted per van at year end, not expensed on the day the compressor, control board or drum bearing kit was bought — expensing it overstates cost of sales and understates the balance sheet, which is exactly the pattern CRA notices. The second stream is warranty work: a homeowner pays you a service call fee, a diagnostic charge, labour and parts, all taxable at 13% HST, while manufacturer and extended-warranty jobs are billed to the warrantor rather than the customer, becoming revenue when the work is performed and the claim is approved and then sitting as a receivable that has to be aged and chased because warranty companies pay slowly. Extended warranty or maintenance plans you sell yourself are income under ITA 12(1)(a) with a 20(1)(m) reserve for the unexpired term. Then there is the asset mix: service vans pool in Class 10 at 30%, a passenger vehicle above the prescribed limit falls into Class 10.1 with an indexed capital cost cap, the ITA 67.2 interest limit of $350 a month and the ITA 67.3 lease cap, small tools sit in Class 12 at 100%, diagnostic and shop equipment in Class 8 at 20%, computers and dispatch software in Class 50 at 55% and leasehold improvements in Class 13. That is why you need a specialist who knows the work. At Gondaliya CPA, we specialize in van stock inventory, warranty receivable aging, technician classification, service vehicle capital cost allowance and corporate tax planning for in-home service companies, providing AFFORDABLE flat-fee support that keeps you CRA-compliant and stops you paying more tax than you owe.

As an appliance service accountant and CPA for in-home repair companies, we work with washer and dryer specialists, refrigeration and cooking-appliance technicians, manufacturer warranty service providers, commercial kitchen service contractors and multi-van operations across Ontario, with year-round support rather than a once-a-year scramble. Everything you bill is taxable at 13% HST with full input tax credits on parts, van stock, tools and vehicle costs. Technician classification is the recurring exposure — the RC4110 factors decide it, and getting it wrong means retroactive CPP and EI plus penalties and interest — while residential trades remain a standing underground-economy audit focus, so undeposited cash and e-transfers are the first thing CRA tests against reported revenue. We tell you plainly what you can deduct, what has to sit on the balance sheet, and where the real margin is on each call after parts, fuel and technician time.

Let us handle the numbers so you can focus on the work that actually pays you.

Gondaliya CPA team - accounting and tax services for appliance repair businesses

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Accounting That Understands How an Appliance Repair Business Actually Works

Running an appliance repair business comes with financial pressures a shop-based retailer never faces. You buy parts that ride in vans for months before they are billed, you wait on warrantors who approve claims on their own schedule, you carry technicians whose employment status CRA can recharacterize years later, and you run vehicles whose deductions depend on a mileage log nobody wants to keep. At Gondaliya CPA, we understand the financial reality of an in-home service company and provide practical, van-level solutions across the GTA and all of Ontario.

Van Stock Is Real Inventory

Parts riding in your trucks are ITA section 10 inventory at the lower of cost and net realizable value, counted per van at year end and written down when a model goes obsolete, not expensed on the purchase date.

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Service Vehicle & Tool CCA

Service vans pool in Class 10 at 30%, small tools in Class 12 at 100%, diagnostic and shop equipment in Class 8 at 20%, computers and dispatch software in Class 50 at 55% and leasehold improvements in Class 13.

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Warranty Billing & Service Plans

Manufacturer work is billed to the warrantor and is revenue when performed and the claim approved, sitting as a receivable to be aged, while plans you sell yourself are ITA 12(1)(a) income with a 20(1)(m) reserve.

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Technicians, TSSA & HST

Technician status is tested on the RC4110 factors, genuine subcontractors get a T4A above $500, TSSA gas and refrigerant certification costs are deductible, and every service call fee, diagnostic charge, labour hour and part carries 13% HST.

Stay Compliant and Minimize Your Appliance Repair Business Tax

For an appliance repair business, staying onside with CRA, the TSSA and WSIB and paying the least legal tax are the same job. We keep every filing on schedule while claiming every parts, capital cost allowance and input tax credit dollar the T2 and the HST return allow, so nothing is missed and nothing invites a reassessment.

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HST, Input Tax Credits & WSIB

Service call fees, diagnostic charges, labour and parts are all taxable at 13% HST in Ontario, so there is no untaxed line to hide behind, and warranty work billed to a manufacturer or warranty administrator carries the tax as well. Because your supplies are fully taxable you claim full input tax credits on parts, van stock, tools, vehicle fuel and repairs, shop rent and dispatch software on line 108 every period. WSIB registration and premiums are mandatory on employed technician wages from the first day you hire, and Employer Health Tax applies once payroll passes the $1 million exemption. Getting HST, credits and WSIB documentation right protects the corporation from reassessment and recovers real cash on every filing period.

CRA & Provincial Obligations for Service Companies

Staying compliant means more than one return a year. We manage HST on every service line, the ITA 20(1)(m) reserve on extended warranty and maintenance plans, the ITA section 10 count of van stock at year end, T4A slips to genuine subcontract technicians paid more than $500, payroll source deductions on the PD7A remittance, and the TSSA gas technician certification and refrigerant handling credentials Ontario requires before that work is legal. By monitoring the areas CRA reviews most often on a residential trade file, we reduce your audit exposure and keep your corporation financially sound.

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Year-End Deliverables for Service Companies

At year-end, an appliance repair corporation needs a proper trial balance and financial statements that carry van stock parts inventory under section 10, aged warranty receivables, deferred revenue on unexpired service plans, your Class 10 vans, Class 12 small tools and Class 8 diagnostic equipment, plus a T2 with GIFI that ties to your HST returns and payroll remittances. Where a lender or vehicle financer is involved, you also need CPA-compiled financial statements for an operating line or a van loan. Our team prepares every deliverable on time and in compliance, so your file is audit-ready and financing-ready.

Accounting & Tax Experts for Appliance Repair Businesses

Gondaliya CPA appliance repair accounting expertsGondaliya CPA appliance repair tax experts
  • AFFORDABLE + Fully Registered CPA Firm
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Why Choose Our Accounting Services for Appliance Repair Businesses?

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Tax Planning — Van Stock, Vehicle CCA & Plan Timing

We know the work: van stock counted per truck under section 10, service vans in Class 10 at 30%, a passenger vehicle capped in Class 10.1, small tools in Class 12 at 100%, diagnostic equipment in Class 8, the 20(1)(m) reserve on extended warranty plans and the ITA 67.2 interest limit of $350 a month. We protect the $500,000 Small Business Deduction and plan around the $1.25M capital gains exemption.

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Consulting — Work Orders, Warranty Claims & Parts Bookkeeping

Our bookkeeping codes every work order, parts invoice and warranty claim in QuickBooks Online or Jobber, reconciles approved claims to warrantor remittances, ages the warranty receivable, and counts van stock per truck at year end. We cost each call so you see the real margin and tie HST to revenue.

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CRA Representation — Classification, Vehicle & Cash Audits

When CRA reviews your technician arrangements, your vehicle deductions and mileage log, your parts inventory or the cash and e-transfer deposits on a residential trade file, we prepare the response, reconcile WSIB, and pursue relief on Form RC4288 where penalties came from a prior error.

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Bookkeeping — Payroll, Subcontractors & Sale

We run your technician and office payroll with WSIB, issue T4A slips to the genuine subcontractors you pay more than $500, and get you ready to sell. We model the profit level where incorporating pays off and handle the eventual disposition of your company.

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Appliance Repair Clients
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Weekend and evening support until 9 PM
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Just a call away when you need us

Appliance Repair Tax and Accounting Services in Ontario

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Corporate Tax Filing (T2) for Appliance Repair Businesses

Professional T2 preparation with Schedule 8 CCA on your vans, tools and diagnostic equipment, the section 10 van stock count, the 20(1)(m) reserve on extended warranty plans, and CRA compliance on every line.

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Bookkeeping & Accounting for Appliance Repair Businesses

Work order, parts and warranty claim bookkeeping with van stock tracking, warranty receivable aging, financial statements, clean records, and monthly reporting built for an in-home service company.

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Payroll Services for Appliance Repair Businesses

Technician, apprentice and office payroll with WSIB, PD7A remittances, T4s, T4A slips for genuine subcontract technicians paid more than $500, and Employer Health Tax once payroll passes $1 million.

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GST/HST Filing for Appliance Repair Businesses

AFFORDABLE HST filing on every taxable line including service call fees and warranty billing, with full input tax credits on parts, van stock, tools and vehicle costs, matched to your T2 to avoid CRA penalties.

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Tax Planning for Appliance Repair Businesses

Smart tax planning to protect the Small Business Deduction, time van and equipment purchases, defer unexpired service plan revenue, handle the Class 10.1 vehicle cap, and plan salary, dividends and sale.

Corporate Catch-Up Filing for Appliance Repair Businesses

File overdue T2 and HST years, rebuild missing parts, work order, capital cost allowance and warranty claim records, and get back into CRA compliance with accurate catch-up support.

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CRA Audit Resolution for Appliance Repair Businesses

Expert support for technician classification, vehicle expense, parts inventory and cash deposit audits, with work orders, mileage logs and per-truck counts assembled and presented with confidence.

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CPA Financial Statements (Notice to Reader) for Appliance Repair Businesses

CPA-compiled financial statements that banks, vehicle financers and manufacturer service programs accept for your appliance repair corporation.

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Incorporation Services for Appliance Repair Businesses

Full incorporation including NUANS, articles, share structure, the CRA business number and HST account, and the section 85 rollover of your vans, tools and van stock parts.

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Catch-Up Bookkeeping Services for Appliance Repair Businesses

We rebuild months of missing parts invoices, work orders, fuel cards, warranty claim remittances and service call billing so your books are current and CRA-ready.

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US Corporation & LLC Tax Filing for Appliance Repair Businesses

Cross-border filing for owners who are US residents or who run a US service affiliate, covering US corporation and LLC returns, treaty positions and 1120/1120-F obligations on your US-connected income.

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Voluntary Disclosure Program for Appliance Repair Businesses

We file a VDP disclosure to correct unreported cash service calls, HST never charged, misclassified technicians or unfiled T2 years before CRA contacts your corporation, cancelling penalties and reducing interest.

Accounting & Tax Services Tailored for Appliance Repair Businesses

Real, practitioner-level CPA expertise for washer and dryer specialists, refrigeration and cooking-appliance technicians, manufacturer warranty service providers, commercial kitchen service contractors and multi-van in-home operations across Ontario — built for how an appliance repair business actually runs.

  • We prepare your T2 with GIFI on Schedule 100 and Schedule 125, splitting service call fees, diagnostic charges, labour, parts and warranty billing onto separate lines in QuickBooks Online; on one operator correct coding reversed a $16,000 assessment.
  • We claim capital cost allowance on Schedule 8, pooling service vans in Class 10 at 30 percent, small tools in Class 12 at 100 percent and diagnostic equipment in Class 8; one $120,000 fleet refresh produced $28,000 of first-year deductions.
  • We bring the parts riding in each truck onto the balance sheet as ITA section 10 inventory at the lower of cost and net realizable value; one count moved $40,000 of untracked van stock out of cost of sales.
  • We set the ITA 20(1)(m) reserve for the unexpired term of extended warranty and maintenance plans you sell yourself, so ITA 12(1)(a) income follows the service rather than the cash; one year that deferred $62,000 correctly.
  • We write off uncollectible warranty and commercial accounts under ITA 20(1)(p) once each debt is established as bad, supported by collection notes kept in Xero, so the deduction survives review; one cleanup released $14,800 of stale receivables.
  • We post every parts invoice, work order and service call to the right revenue and cost account in QuickBooks Online, keeping the six-year record trail section 230 requires; one review surfaced $11,000 of parts never billed to customers.
  • We reconcile approved manufacturer claims in Jobber or ServiceTitan back to the remittances warrantors actually pay, and age the receivable monthly, so slow payers surface early; one aging exercise recovered $18,000 written off as uncollectible.
  • We capture parts, fuel and tool receipts through Dext so the 13 percent HST on van stock, vehicle repairs and shop rent is claimed as input tax credits on line 108 of your return; one cleanup recovered $7,400.
  • We count parts on hand per truck at year end and value them under ITA section 10 at the lower of cost and net realizable value, writing down control boards for discontinued models; one write-down was worth $9,600.
  • We build a per-call margin report from parts cost, technician hours, fuel and the fee actually collected, so a flat-rate job that has stopped paying shows up in the month it turns; one review exposed $23,000 of losing work.
  • We set up technician, apprentice and office payroll in Wagepoint, withholding income tax, CPP and EI and remitting on the PD7A by the 15th, so a busy season never triggers the CRA 10 percent late-remittance penalty; on $12,000 that costs $1,200.
  • We register your WSIB coverage before the first technician starts and reconcile premiums in Wagepoint to the T4 Summary; one registration avoided a $16,000 retroactive assessment covering two years of in-home service wages.
  • We test each arrangement against the RC4110 factors before deciding, issuing a T4A where a genuine subcontractor is paid more than $500 and a T4 where control and tools point to employment; one correction closed a $12,000 exposure.
  • We prepare and file the T4 and T4 Summary slips from your Wagepoint records by the last day of February, avoiding the per-slip penalty CRA applies to late filings; on one twelve-technician operation that exposure reached $1,000.
  • We manage Ontario Employer Health Tax once annual payroll passes the $1,000,000 exemption, file the annual return alongside the T4 Summary, and reconcile everything to the PD7A in Wagepoint; on one multi-van company this caught $4,200 of unremitted tax.
  • Service call fees, diagnostic charges, labour and parts are all taxable at 13 percent HST in Ontario, so we set the correct tax code on every line in QuickBooks Online; one review found $14,700 of tax undercharged.
  • Warranty work billed to a manufacturer or warranty administrator carries the tax like any other supply, so we invoice the warrantor with HST rather than treating an approved claim as a tax-free recovery; one correction avoided $21,000 assessed.
  • We claim full input tax credits on parts, van stock, small tools, vehicle fuel and repairs, shop rent and dispatch software on line 108 every filing period, because everything you supply is fully taxable; one catch-up recovered $19,300.
  • We register the corporation once revenue passes the $30,000 small-supplier threshold and back-file the periods missed, so CRA cannot assess uncollected tax against the owner personally; one late registration limited exposure to $8,600.
  • We reconcile the HST reported to the revenue on your T2 and Schedule 125 each period, because the CRA matching program pulls a residential trade whose figures disagree; one reconciliation pre-empted a $17,000 reassessment with interest.
  • We set the salary-versus-dividend mix each year against the $500,000 Small Business Deduction, keeping active income near the 12.2 percent Ontario rate while leaving room for RRSP contributions; one owner saved $17,000 in a single year.
  • We time van, diagnostic equipment and tool purchases before your year end so the half-year rule still yields Class 10, Class 8 and Class 12 deductions in the current year; on one $160,000 order that pulled forward $24,000.
  • We steer vehicle buying away from a passenger vehicle that lands in Class 10.1 with the indexed capital cost cap, the ITA 67.2 interest limit of $350 a month and the ITA 67.3 lease cap; one change preserved $9,000 of deductions.
  • We track the deferred revenue balance on unexpired service plans through the year so the 20(1)(m) reserve is claimed and reinstated correctly, keeping taxable income smooth; one review corrected $54,000 of prematurely recognized plan income.
  • We plan the $1.25 million Lifetime Capital Gains Exemption on an eventual share sale, purifying the balance sheet of idle cash and surplus parts well before a buyer appears; one purification protected $240,000 of gain.
  • We rebuild missing years from parts invoices, work order exports, warranty remittance statements and bank statements, then file each outstanding T2 in order so CRA lifts the arbitrary assessments; one file cleared four late years.
  • We recompute Schedule 8 undepreciated capital cost from scratch where vans and diagnostic equipment were never pooled, restoring the Class 10, Class 8 and Class 12 balances; one rebuild recovered $41,000 of capital cost allowance never claimed.
  • We back-file the HST returns that went with those years, claiming input tax credits on parts, fuel and tools while they still sit inside the four-year window; one catch-up recovered $16,500 of credits.
  • We apply for taxpayer relief on Form RC4288 where late-filing penalties and arrears interest came from illness or a bookkeeper walking out mid-season; one application cancelled $9,800 of penalties and accumulated interest.
  • We reconstruct the year-end van stock count for each missed year so parts on hand are valued under section 10 rather than fully expensed; one restatement moved $34,000 of deduction into the correct period.
  • When CRA tests whether your technicians are employees, we present the RC4110 analysis on control, ownership of tools, chance of profit and integration, so a retroactive CPP and EI assessment is met with evidence; one response cut $47,000 to nil.
  • When an auditor challenges vehicle deductions, we produce the mileage log, fuel cards and work order addresses tied line by line to the general ledger, because the log is what CRA asks for first; one audit preserved $22,000.
  • Residential trades sit inside the CRA underground economy focus, so we reconcile every cash payment and e-transfer deposit to the work orders behind them before an auditor does; one reconciliation closed a review on $310,000 of revenue.
  • When parts written off as obsolete are questioned, we show the per-truck count, the model discontinuation and the section 10 net realizable value calculation, so the write-down holds; one review preserved $12,400 of claimed inventory losses.
  • We handle the correspondence, the information requests and the Notice of Objection on Form T400A where an assessment is simply wrong, and pursue relief on Form RC4288; one objection reversed $38,000 of tax and penalties.
  • We compile Notice to Reader financial statements that lenders and vehicle finance companies accept, showing van and equipment book values, van stock parts inventory and aged warranty receivables presented properly; one set unlocked a $350,000 operating line.
  • We present unexpired extended warranty and maintenance plan revenue as a liability rather than income, so a lender sees the real earnings profile of the service book; one restatement moved $62,000 off the revenue line.
  • We carry parts on hand at the lower of cost and net realizable value under section 10, with the per-truck count and obsolescence review documented at the reporting date; one $9,600 write-down was accepted without a single question.
  • We show the warranty receivable with an aging schedule and a realistic allowance, because a warrantor paying in ninety days changes what a bank thinks of your working capital; one presentation avoided a covenant breach worth $180,000.
  • We reconcile the statements to the T2, the HST returns and the payroll remittances before release, because a bank pulls all three together; one review corrected $13,000 of revenue reported in the wrong period.
  • We incorporate federally or in Ontario with a NUANS search, articles and a share structure that leaves room for a family trust and future partners, then register the CRA business number, the RP payroll and the RT tax accounts.
  • We roll your existing vans, tools and van stock parts into the new corporation on a section 85 election filed on Form T2057, so no gain is triggered on transfer; one rollover deferred $95,000 of accrued gain.
  • We model the break-even where the 12.2 percent Ontario small business rate beats a personal rate reaching 53.53 percent, using your actual call volume and drawings; one owner had crossed it two years earlier than expected.
  • We move the TSSA gas technician registration, refrigerant handling credentials and manufacturer service authorizations into the corporate name so warranty programs and insurance are never interrupted; one transfer preserved a $210,000 service agreement.
  • We open the corporate HST account at the $30,000 threshold and set the first fiscal year end to defer tax into the following calendar year; on one incorporation that choice postponed $19,000 of tax by ten months.
  • We rebuild months of missing parts invoices, work orders, fuel cards and warranty remittances into QuickBooks Online, reconciling every bank and credit card account to the cent; one rebuild covered seventeen months of neglected records.
  • We rebuild the parts register so stock riding in every truck is counted and carried under section 10 rather than expensed on the purchase date; on one file that brought $40,000 of van stock onto the balance sheet.
  • We rebuild the warranty claim ledger, matching approved claims to the remittances that eventually arrived and aging what did not; one reconstruction recovered $18,000 of receivables already written off as uncollectible.
  • We rebuild the HST filings from the reconstructed books, claiming input tax credits on parts, tools, fuel and repairs that were never recorded anywhere; one catch-up filing produced a $21,000 refund from CRA.
  • We rebuild the payroll records, matching PD7A remittances, WSIB premiums and T4A payments to subcontract technicians against the ledger; one reconstruction resolved $7,300 of unposted source deductions and closed the account.
  • We file Form 1120 for a US subsidiary that runs service vans or holds a parts warehouse south of the border, allocating parts cost and labour revenue between the two countries correctly; one return corrected $38,000 of misplaced income.
  • We file a treaty-based Form 1120-F with Form 8833 where a Canadian corporation sends technicians into a border state without a permanent establishment there, so no US tax applies; one protective filing avoided $31,000.
  • We file Form 5472 for every reportable transaction between the Canadian parent and its US affiliate, and for a US-resident owner of the corporation, because a missed form carries a $25,000 penalty each year; one catch-up covered three years.
  • We fix the hybrid mismatch where a US LLC is fiscally transparent for US purposes but a corporation to CRA, restructuring before double taxation locks in; one restructuring saved $24,000 of tax every year.
  • We claim foreign tax credits on the T2 for US federal and state tax paid, and register for state filing where technicians or equipment cross the line; one claim recovered $17,000 of double-taxed income.
  • We file a VDP application before CRA contacts you, correcting unreported cash and e-transfer service calls so penalties are cancelled and interest reduced; one disclosure covered $185,000 of omitted income across three separate years.
  • We disclose HST that was never charged on service call fees, diagnostic charges or warranty billing, remitting the tax with the corrected returns rather than waiting for an assessment; one filing limited exposure to $21,000 with penalties waived.
  • We correct van stock parts that had been fully expensed for years and service plan revenue recognized far too early, restating each T2 under the program; one disclosure moved $40,000 of inventory back onto the balance sheet.
  • We disclose unfiled T4A slips for technicians paid in cash above the $500 threshold, filing the slips and the summaries together so the per-slip penalty is cancelled; one application covered fourteen technicians over two calendar years.
  • We prepare the narrative, the supporting schedules and the RC199 application, then handle the CRA questions through to acceptance, because an incomplete disclosure can be rejected outright; one accepted file saved $44,000 in penalties.

Appliance Repair Tax & Van Stock Check

Six quick questions on your van stock inventory count, warranty receivable aging, technician classification, mileage logs, tool and equipment capital cost allowance, and whether it is time to incorporate. No fee shown.

1. Are the parts riding in your vans counted at year end and carried on the balance sheet rather than expensed on purchase?

2. Are your manufacturer and extended-warranty receivables aged and chased every month?

3. Are your technicians correctly classified as employees or subcontractors on the RC4110 factors?

4. Do you keep a mileage log for every service vehicle?

5. Are your small tools, diagnostic equipment and dispatch software in the right capital cost allowance classes?

6. Is your appliance repair business incorporated?

Free CPA Consultation for Appliance Repair Businesses

Case Studies: Appliance Repair Accounting & Tax

Mississauga Appliance Service Company — Van Stock Onto the Books

The problem: A Mississauga appliance service company ran four vans and had no parts inventory account at all. Every compressor, control board and water pump was expensed on the day it was bought, so cost of sales was materially overstated, the balance sheet showed almost no assets, and nobody could say what was actually sitting in the trucks. A CRA review letter had just arrived.

What we did: We counted van stock truck by truck at year end, valued it under ITA section 10 at the lower of cost and net realizable value, wrote down parts for discontinued models, brought the balance onto the balance sheet, and restated cost of sales for each of the affected years.

The result:

  • Brought $40,000 of untracked van stock onto the books
  • Corrected a materially overstated deduction
  • Five-figure tax difference resolved before assessment

Hamilton In-Home Repair Business — RC4110 Review and a Section 85 Incorporation

The problem: A Hamilton in-home repair business was running unincorporated, so every dollar of profit landed on the owner personal return at the Ontario top 53.53 percent rate. Three technicians were paid as subcontractors, yet they worked set hours, drove company vans, used company tools and took every job the dispatcher assigned them.

What we did: We documented the RC4110 analysis on control, tools, chance of profit and integration, moved the three technicians onto payroll with WSIB before CRA reviewed the file, and incorporated the business on a section 85 rollover so the $500,000 Small Business Deduction applies at roughly 12.2 percent.

The result:

  • Cut the tax bill materially at the 12.2 percent small business rate
  • Closed a retroactive CPP and EI exposure
  • Technicians on payroll before CRA reviewed the file

Brampton Warranty Service Provider — Warranty Aging, Revenue Split and Mileage Logs

The problem: A Brampton warranty service provider had no record of which manufacturer claims had been approved and which had actually been paid, mixed service call fees, diagnostic charges, labour and parts into one revenue line, and kept no mileage logs on three service vans that CRA would ask about first.

What we did: We built a warranty receivable ledger with monthly aging tied to approved claims, split revenue by stream in QuickBooks Online so each line carries its own margin and HST, and set up mileage tracking against every work order address so vehicle deductions are supported by a log rather than an estimate.

The result:

  • Warranty claims aged and chased every month
  • Revenue split by service call, labour and parts
  • Clean, audit-ready books with a supported mileage log for each van

Our Simple Process

How We Work With Appliance Repair Businesses

Know Exact Fees within 2 Minutes NOW

Our clear, efficient process ensures every step is transparent, building trust and long-term client relationships.

Here’s a simplified process approach:
Step 1

Kickoff (Document Request)

Collect prior T2 returns, parts invoices, work order and dispatch exports, the warranty claim and remittance history, the van and tool schedule, mileage logs, payroll records, and bank statements.

Step 2

First 30 Days (Cleanup & Setup)

Set up QuickBooks Online or Xero, build the van stock parts register with a per-truck count, the warranty receivable aging, the Class 10, Class 8 and Class 12 pools, and configure payroll and WSIB tracking.

Step 3

Monthly Close

Monthly reconciliations, receipt capture, warranty claim to remittance reconciliation, input tax credits on parts and fuel, per-call margin reporting, and service plan revenue release.

Step 4

Quarterly Planning Review

Salary and dividend mix, HST and input tax credit review, capital cost allowance and van timing, service plan reserve check, and technician classification and mileage log review.

Step 5

Year-End Close & T2 Filing

Trial balance, financial statements with section 10 van stock inventory and aged warranty receivables, T2 with GIFI, Schedule 8 and the 20(1)(m) reserve, and CRA preparation.

Get Your Appliance Repair Business Taxes Done Right Today

Transparent Pricing for Appliance Repair Businesses

Affordable Pricing for Appliance Repair Businesses

Know Exact Fees within 2 Minutes NOW

We believe in clear, upfront pricing so you know exactly what to expect. All fees include HST.

  • Tax Preparation (Corporation) — From $400
  • Tax Return Filing (Corporation) — From $400
  • Tax Compliance Audit — FREE CRA audit support for our clients
  • Tax Strategy — FREE for our clients
  • Accounting Base Plan — From $100 per month
  • Bookkeeping Management — Free for our Accounting clients
  • Financial Reporting — Free for our Accounting clients
  • Business Formation — Flat $35
  • Incorporation Process — Flat $35
  • Entity Setup Assistance — Flat $35
  • Full-Service Payroll — From $125 per month

Payment is by Interac e-Transfer to info@gondaliyacpa.ca only. Security question: Not Applicable, as auto-deposit is enabled.

Meet Your Lead Appliance Repair Accountant

Meet your lead appliance repair accountant. As your van stock, warranty and corporate tax adviser, you deal with the same two people every year.

Sharad Gondaliya CPA

Sharad Gondaliya, CPA

Principal

Bio

647-212-9559
sharad@gondaliyacpa.ca

Vandana Goel CPA

Vandana Goel, CPA

Accounting Specialist

Bio

647-250-0242
vandana@gondaliyacpa.ca

What Our Clients Say

1300+ five-star reviews from appliance repair business owners and service technicians across Ontario and Canada.

Serving Appliance Repair Businesses Across Ontario

Our CPA team provides specialized accounting and tax solutions for appliance repair businesses throughout Ontario. We understand how service call fees, warranty billing, van stock parts, technician classification and service vehicle costs actually flow through an in-home repair company, what CRA looks at on a residential trade file, and how to put your parts, equipment and service revenue in the right place.

Toronto (ON)

55 Queen St E Ste 1205, Toronto, ON M5C 1R6, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Mississauga (ON)

5373 Bullrush Dr, Mississauga, ON, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Brampton (ON)

4 Starhill Crescent, Brampton, ON L6R 2P9, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Scarborough (ON)

24 Clementine Square, Scarborough, ON M1G 2V7, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Vaughan (ON)

19 Cabinet Crescent, Woodbridge, ON L4L 6H9, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Oshawa (ON)

210 Durham St, Oshawa, ON L1J 5R3, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Ottawa (ON)

2090 Neepawa Ave a314, Ottawa, ON K2A 3L6, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Etobicoke (ON)

60 Stevenson Rd #1601, Etobicoke, ON M9V 2B4, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Hamilton (ON)

70 Starling Dr, Hamilton, ON L9A 0C5, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Guelph (ON)

1155 Gordon St, Guelph, ON N1L 1S8, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Windsor (ON)

4387 Guppy Ct, Windsor, ON N9G 2N8, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

North York (ON)

150 Graydon Hall Dr #912, North York, ON M3A 3B2, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Appliance Repair Accounting & Tax FAQs

Should I incorporate my appliance repair business?
Incorporating gives you limited liability and a 12.2% Ontario combined rate on the first $500,000 of active income, versus a personal rate up to 53.53% if you stay unincorporated. It usually pays once you consistently earn more than you withdraw, since that surplus is what a corporation lets you defer. It also opens the $1.25M Lifetime Capital Gains Exemption on a future sale of the shares. We model the break-even and handle the section 85 rollover on Form T2057.
Do appliance repair businesses charge HST, and is a service call fee taxable?
Yes to both. Service call fees, diagnostic charges, labour and parts are all taxable at 13% HST in Ontario, and you register once revenue passes the $30,000 threshold. There is no untaxed line in this business, including warranty work billed to a manufacturer. Because everything you supply is taxable, you claim full input tax credits on parts, van stock, tools and vehicle costs.
How do I account for manufacturer warranty billing?
Warranty work is billed to the warrantor, not the homeowner. It becomes revenue when the work is performed and the claim is approved, and until the warrantor pays it sits as a receivable on your balance sheet. Warranty companies are slow payers, so that receivable has to be aged and chased monthly. Uncollectible claims come off under ITA 20(1)(p) once the debt is established as bad.
How do I handle extended warranty and maintenance plans I sell myself?
A plan you sell yourself is income under ITA 12(1)(a) when the money is received, but ITA 20(1)(m) allows a reserve for the unexpired term of the agreement. In practice you carry the unearned portion as deferred revenue and release it over the plan period, then reinstate the reserve at each year end. Done properly, tax follows the service rather than the cash.
How do I track van stock parts inventory?
Parts riding in your trucks are inventory under ITA section 10, carried at the lower of cost and net realizable value. Count them per van at year end rather than expensing every purchase on the day it lands, and write down control boards and components for models that have been discontinued. Expensing van stock overstates cost of sales and understates the balance sheet.
Are my technicians employees or contractors, and do I issue T4As?
CRA decides on the RC4110 factors: control, ownership of tools, chance of profit and risk of loss, and integration into your business. A technician who works set hours in your van with your tools is an employee and gets a T4 with source deductions and WSIB. A genuine subcontractor gets a T4A where fees exceed $500. Misclassification means retroactive CPP and EI plus penalties and interest.
What CCA class is a service van, and what tools can I write off?
A service van is Class 10 at 30%, pooled with your other motor vehicles, while a passenger vehicle above the prescribed limit goes into Class 10.1 with the capital cost capped at that indexed limit. Small tools are Class 12 at 100%, diagnostic and shop equipment Class 8 at 20%, computers and dispatch software Class 50 at 55%, and leasehold improvements Class 13.
Can I deduct the full lease payment on a service vehicle?
On a van used for business, yes, to the extent of business use. On a passenger vehicle the ITA 67.3 lease cost limit caps the monthly deduction, and if you finance rather than lease, ITA 67.2 caps interest at $350 a month. Either way the personal-use portion is denied, and ITA 18(1)(h) shuts out personal living expenses entirely.
Do I need a mileage log?
Yes. A mileage log is the first thing CRA asks for when vehicle expenses are reviewed, and without one the deduction is an estimate an auditor can simply reduce. Record the date, destination, purpose and kilometres for every service call, plus the odometer reading at the start and end of the year. Dispatch software such as Jobber or Housecall Pro can generate most of it automatically.
How much corporate tax does an appliance repair business pay in Ontario?
An incorporated appliance repair company pays roughly 12.2% combined federal and Ontario tax on the first $500,000 of active business income, and about 26.5% on income above that. Personal rates reach 53.53%, which is why profit left inside the company is deferred so effectively. Your actual rate depends on associated companies sharing the small business limit and on passive investment income grinding it down.
What can an appliance repair business write off?
Parts and van stock consumed, technician wages, WSIB premiums, subcontract technician fees, vehicle fuel, insurance and repairs, TSSA gas technician certification and refrigerant handling training, uniforms, shop and home-office costs on a reasonable business-use basis, dispatch software, and capital cost allowance on vans, tools and equipment. Uncollectible warranty and customer accounts come off under ITA 20(1)(p). ITA 18(1)(h) denies personal living expenses.
How does CRA treat cash jobs?
Residential trades are a standing underground-economy audit focus, so undeposited cash and e-transfers are the first thing CRA tests against reported revenue. Auditors compare deposits, work orders and parts purchases, and a gap invites a net-worth assessment with gross negligence penalties. Every job belongs in the system and in the bank. If revenue was missed, the Voluntary Disclosures Program is the cheap way to fix it.
What accounting software works best for an appliance repair business?
We pair QuickBooks Online or Xero for the ledger with field service software such as Jobber, Housecall Pro, ServiceTitan or mHelpDesk, so work orders, parts used and warranty claims flow through instead of being keyed twice. Dext captures parts and fuel receipts, and the dispatch app supplies the mileage data. The result is per-call margin and a van stock count you can actually rely on.

Related Industries We Serve

Electronics Resellers

  • Inventory costing and HST on sales
  • Equipment CCA and supplier accounts
  • Corporate tax planning and bookkeeping

Handyman Businesses

  • Job costing and materials tracking
  • Vehicle, tool and equipment CCA
  • Corporate tax filing and bookkeeping

Small Businesses

  • Corporate tax planning for small businesses
  • Business tax filing and financial statements
  • Payroll and bookkeeping services

Incorporated Businesses

  • T2 corporate returns and GIFI
  • Salary, dividend and SBD planning
  • Compilation statements and incorporation

Appliance Repair Accounting & Tax Done Right.

T2 filing, van stock parts counted per truck under ITA section 10, warranty receivables aged and chased, technician classification tested on the RC4110 factors with T4A slips above $500, Class 10 vans and Class 12 small tools on Schedule 8, mileage logs that survive a review, extended service plans deferred under a 20(1)(m) reserve, 13% HST on every service call fee, diagnostic charge, labour hour and part, and technician payroll with WSIB under one roof. AFFORDABLE flat fees, no hourly billing. Licensed CPA Ontario. 1300+ five-star reviews. 30-Day Money-Back Guarantee.



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