In the United States, mortgage interest is tax deductible if you meet certain qualifications. However, mortgage interest isn’t tax deductible here in Canada. That doesn’t mean that there aren’t a few cool tricks that you can use to improve your tax situation, and that includes turning your mortgage interest into something that could be tax Read more about The Basics of the Smith Manoeuvre[…]
What is the SBD? The SBD reduces the corporate income tax that a corporation would otherwise have to pay in a taxation year throughout which it was a Canadian-controlled private corporation (CCPC). A corporation’s SBD for a taxation year is generally calculated by multiplying its SBD rate by the lesser of its: income for the Read more about Small business deduction rules[…]
Permanent life insurance, whether it be universal life or whole life, can be a valuable tool for clients looking for tax-efficient capital accumulation of their “never money.” By never money, I mean money they will never spend in their lifetime and wish to pass on to their families or to charity after they’re gone. One Read more about A life insurance policy loan or a loan against the policy?[…]
You own your own business and you have incorporated. A smart decision, since corporate structures have significant benefits such as: Limited liability Continuity of the business Easier access to capital Lower income tax rates with the small business tax deduction Potential tax deferral Now that your business is incorporated, have you considered corporate-owned insurance? Not Read more about How Corporate Insurance Can Benefit your Business[…]
Are you a privately held federal corporation? New amendments to the CBCA require private corporations to record all individuals with “significant control” over the corporation. By June 13, 2019, certain private corporations incorporated under the Canada Business Corporations Act (the “CBCA“) will be required to prepare and maintain a register (the “ISC Register“) of each individual with Read more about CBCA require private corporations to record all individuals with “significant control” over the corporation.[…]
A Power of Attorney (POA) is a legal document in which you give someone you trust (called your “attorney”) the right to make decisions for you if something happens and you are no longer able to look after matters on your own. There are two types of Power of Attorney: Power of Attorney for Personal Read more about Powers of Attorney – What Are They and How Do They Work?[…]
General program The general program provides relief to taxpayers who want to correct unintentional errors. If your application is accepted into the general program, you will not be charged penalties and will not be referred for criminal prosecution related to the information disclosed. Through the general program you may be granted partial relief of interest Read more about Voluntary Disclosure Program[…]
After a lot of public debate in the tax and small business community around the way in which passive investment income is taxed in Canadian controlled private corporations, the changes that were announced in the 2018 Federal Budget are now law. These changes will limit the amount of the small business deduction for many corporations. Read Read more about How the 2019 Passive Investment Income Changes Affect Your Small Business[…]
Over the past 4 years or so, we have experienced an unprecedented increase in the complexity of private company taxation. In today’s tax environment what strategies are tax practitioners looking at for 2019? Please keep in mind that the information contained herein does not represent tax or legal advice and is for informational purposes only. Read more about Tax Planning in 2019[…]
News release December 27, 2018 – Ottawa, Ontario – Department of Finance Canada The Department of Finance Canada today announced the income tax deduction limits and expense benefit rates that will apply in 2019 when using an automobile for business purposes. Most of the limits and rates that applied in 2018 will continue to apply Read more about Government Announces the 2019 Automobile Deduction Limits and Expense Benefit Rates for Businesses[…]