corporation

Use Capital Losses

You can use your 2018 capital losses to reduce your current year’s income taxes by applying such losses against your 2018 capital gains. You must, however, be careful of the superficial loss rules preventing you from claiming a capital loss on an identical asset that you reacquired 30 days before or after the sale date.

If capital […]

By |December 5th, 2018|SmallBiz Builder|0 Comments

Corporate Directors Liability

If a corporation (including a for profit or non-profit corporation) fails to deduct, withhold, remit or pay amounts held in trust for the Receiver General for Canada (CPP, EI and GST/HST), the directors of the corporation at the time may be held personally liable along with the corporation to pay the amount due. This amount […]

By |July 4th, 2018|SmallBiz Builder|0 Comments

Business Investment Loss – Denied

In a Tax Court of Canada case, a mother had guaranteed the business loans for her son’s corporation. Unfortunately, the corporation failed and subsequently the mother paid off the loans. The mother claimed business investment losses for the amounts repaid.
Her only motivation for the guarantee was to assist her son’s business. She did not charge […]

By |July 2nd, 2018|SmallBiz Builder|0 Comments

Owner – Managed Business – Creditor Proofing

Every business owner should be concerned about creditor proofing his assets. Here are several suggestions to consider:
1. Transfer assets out of the company:

Place capital assets in a separate holding corporation so that subsequent legal claims that arise in the operating company do not affect these assets.
Lease the assets in the holding corporation back […]

By |June 8th, 2016|SmallBiz Builder|0 Comments

Home Office Expense – Self Employment Perk?

In general, every business starts out of someone’s home.  Even if the business will eventually grow to a multi-million dollar business, it has to start somewhere.  The home office is usually one or two rooms in the home that are used for record keeping, storage and meetings.  The office typically has a desk, a few […]

By |April 8th, 2014|SmallBiz Builder|0 Comments

Door Prizes at Company Functions

In a 2013 Technical Interpretation, CRA was questioned about door prizes received by all attendees at a company social function.
CRA commented that their tax-free $500 gifts and awards policy would apply to all attendees including the employee, the employee’s spouse, and all other non-arm’s length individuals that received a gift.
It was suggested that gift cards […]

By |October 7th, 2013|SmallBiz Builder, Tax Tips|0 Comments

Should You Incorporate Your Business?

If you own a business, you may have wondered if you should incorporate. Historically the income tax system in Canada has benefited incorporated Canadian small businesses. Although the income and deduction calculations are almost identical to an unincorporated business, the major differences are in the corporate taxation structure and tax planning opportunities. When developing the […]

By |September 4th, 2013|SmallBiz Builder, Tax Tips|0 Comments