It’s important to note that tax laws are subject to change, and it’s advisable to consult with a tax professional for the most up-to-date and personalized advice. Here are some key aspects of building owner taxation in Canada: Rental Income Tax: Rental income from a building is generally considered taxable income. Building owners need to […]
Salary and dividends are two different forms of compensation that business owners can receive from their companies. The main distinctions between salary and dividends lie in their nature, tax treatment, and how they are distributed. Salary: Definition: A salary is a fixed regular payment made by an employer to an employee, typically on a monthly […]
The ability to claim the Goods and Services Tax (GST) or the Harmonized Sales Tax (HST) paid on a vehicle depends on the purpose for which the vehicle is being used. In many cases, businesses can claim a portion of the GST/HST paid on a vehicle, especially if the vehicle is used for business purposes. […]
Yes, it is possible to purchase a car through your company. Many businesses choose to acquire vehicles for various purposes, such as for employee use, as part of a fleet, or for specific business activities. Here are some common ways businesses go about purchasing cars: Company-Owned Vehicle: You can buy the car directly in the […]
Yes, in Canada, it is possible for a business owner to charge their company rent for the use of their personal residence for business purposes. However, there are several important considerations and guidelines to keep in mind: Fair Market Value (FMV): The rent charged should be at fair market value. This means it should be […]
The ability of your spouse to receive a salary or dividends from your corporation depends on various factors, including the legal and tax regulations in your jurisdiction, the structure of your business, and the roles and responsibilities of your spouse within the company. Here are some general considerations: Legal Structure: If your business is a […]
Avoiding interest and penalties on corporate taxes in Canada, or any other jurisdiction, involves careful compliance with tax regulations and timely fulfillment of obligations. Here are some strategies to help you avoid interest and penalties on corporate tax: Understand Tax Obligations: Be aware of all tax obligations relevant to your business, including filing deadlines, installment […]
Deciding when to incorporate a company instead of operating as a sole proprietor in Canada depends on various factors related to your business, financial situation, and long-term goals. Here are some considerations that may help you determine the best time to incorporate: Business Size and Complexity: As your business grows in size and complexity, incorporating […]
Creating a holding company can offer various advantages for businesses and individuals engaged in multiple ventures. Here are some common reasons why someone might choose to establish a holding company: Asset Protection: A holding company structure can provide a layer of protection for the assets of each subsidiary. If one subsidiary faces financial difficulties or […]
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