The impact of selling assets can vary depending on several factors, including the type of asset sold, the holding period, the seller’s tax status, and the amount of gain or loss realized. Here are some key considerations regarding the impact of selling assets in Canada: 1. Capital Gains Tax: 2. Capital Losses: 3. Depreciable Assets: […]
Yes, in Canada, tax rates can vary depending on the type of income earned. The Canadian tax system distinguishes between different types of income, and each type may be subject to different tax rates and treatment. Here are some common types of income and how they are taxed: Employment Income: This includes wages, salaries, bonuses, […]
As of our last update in January 2024, the corporate tax rates in Quebec and Ontario are as follows: Quebec: The general corporate tax rate in Quebec is composed of two parts: The corporate tax rates in Quebec for active business income are as follows: 11.7% on the first $500,000 of taxable income.26.9% on taxable […]
Depreciable assets are tangible assets that a business owns and uses to generate income, and their value decreases over time due to wear and tear, obsolescence, or other factors. In Canada, businesses can deduct a portion of the cost of depreciable assets each year as an expense to reflect their declining value. Here are the […]
It’s essential for taxpayers to keep accurate records and supporting documents to substantiate the information reported on their tax returns. Keeping organized records helps taxpayers comply with tax regulations, substantiate deductions and credits claimed, and respond to inquiries or audits from the Canada Revenue Agency (CRA). Here are some key supporting documents that individuals and […]
In Canada, eligible expenses refer to costs that individuals or businesses can deduct from their taxable income to reduce the amount of taxes they owe. These expenses vary depending on the type of taxpayer and the nature of the expenses incurred. Here’s an overview of eligible expenses for individuals and businesses in Canada: Eligible Expenses […]
In Canada, business loss carryforwards refer to the ability of a corporation to carry forward its net operating losses (NOLs) from previous tax years to offset taxable income in future tax years. This provision allows businesses to smooth out their tax liabilities over time, particularly during periods of financial difficulty or business expansion when they […]
In Canada, installment payments are a way for individuals and corporations to pay their income tax liabilities throughout the year, rather than in one lump sum at the end of the tax year. These payments help taxpayers manage their cash flow and meet their tax obligations in a timely manner. Here’s how installment payments work […]
In Canada, both salaries and dividends are forms of compensation that business owners or shareholders can receive from a corporation. However, there are several key differences between salaries and dividends in terms of taxation, legal implications, and financial considerations. Here are some of the main differences: 1. Tax Treatment: 2. Deductibility for the Corporation: 3. […]
Canadian corporation based on its income statement. For simplicity, we’ll use fictional numbers and assume the corporation is subject to the federal corporate income tax rate and relevant provincial tax rates. Here’s a sample income statement for our fictional corporation: Revenue: $1,000,000 Cost of Goods Sold (COGS): $400,000 Gross Profit: $600,000 Operating Expenses: $300,000 Operating […]
Clinton Tano Professional Corporation
