Corporate owned insurance can have many benefits. A policy owned by your operating company though, can cause quite a few headaches. When it comes time to sell your operating company, you may find it very difficult to transfer the policy out of the company. In fact, this type of transfer can have onerous tax consequences. Read more about When Your Business Owns a Life Insurance Policy, Proper Set-Up is Key[…]
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[…]
An IRA is similar to an RRSP in that contributions are tax deductible, the funds grow tax sheltered while invested inside the account, and there is an annual “required minimum distribution” for investors after the age of 70.5 in which funds are required to be withdrawn and are taxable as income. As advisors, we may Read more about IRA to RRSP transfers can be done — but be careful[…]
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[…]
Regardless of age or personal wealth, there are many Canadians who do not have a Will. Although the thought of preparing a Will may seem to be premature or too burdensome for some, the consequences of dying without a Will can be severe. If you die without a Will (this is referred to as dying Read more about 10 Consequences to Dying Without a Will[…]
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[…]