Business

Read more about the article Consulting Corporations Beware
Business

Consulting Corporations Beware

If you run your consulting business through a corporation you should be aware of the tax rules surrounding personal services businesses. Small business corporations are afforded preferential tax treatment on their income by means of the small business deduction. However, certain types of corporations are specifically excluded from claiming this deduction and can have many of the other benefits afforded a…

Comments Off on Consulting Corporations Beware
June 15, 2012
Read more about the article Should You Claim CCA On Your Rental Property?
Business / Investing / Real Estate

Should You Claim CCA On Your Rental Property?

The Income Tax Act allows you to deduct certain expenses directly related to your rental property such as property taxes, interest, insurance, accounting fees, and advertising. While you can’t deduct the full cost of the property itself, you are permitted to claim an amount every year as “capital cost allowance” (CCA). CCA appears to be an attractive way to reduce their…

Comments Off on Should You Claim CCA On Your Rental Property?
June 6, 2012
Read more about the article Borrowing From Your Corporation
Business / Corporations

Borrowing From Your Corporation

If you have a business corporation, your income will normally consist of salary or dividends. However, given the right circumstances, your corporation may be able to lend you money tax-free. There are some things that you need to be aware of. First, if the company extends you a low or no-interest loan, there will be a taxable benefit added to…

Comments Off on Borrowing From Your Corporation
May 30, 2012
Read more about the article The Benefits Of A Holding Company
Business / Corporations / Tax Planning

The Benefits Of A Holding Company

If you carry on a business as a corporation you may want to consider using a holding company to own your operating company. The holding company structure offers tax deferral opportunities and can help insulate your accumulated wealth from creditors or be used to avoid the U.S. estate tax. The Basics of A HoldCo In its basic format, a holding…

Comments Off on The Benefits Of A Holding Company
May 25, 2012
Read more about the article Income Splitting For Business Owners
Business / Corporations / Tax Planning

Income Splitting For Business Owners

Income splitting can produce some pretty dramatic results. Consider the case of a married, self-employed individual whose taxable income is in excess of $250,000. Assuming the spouse does not work, the tax bill would be $94,700 (in Ontario). If this couple were to split their income equally, their combined tax bill would drop to $77,700, a savings of $17,000. Now if…

Comments Off on Income Splitting For Business Owners
May 10, 2012
Read more about the article Shareholder Loans and Your Private Corporation
Business / Corporations

Shareholder Loans and Your Private Corporation

If you own your private corporation and borrow money you should consider the income tax consequences. The Income Tax Act contains a series of rules that may have income tax consequences for the person receiving the loan from the company. In the context of this article, the term loan means any form of debt the shareholder or family member has to…

Comments Off on Shareholder Loans and Your Private Corporation
February 11, 2012