Webinar: Tax Changes for 2019 Small Business Corporations in Canada Watch Video
Allan Madan, CPA, CA
This webinar will focus on the proposed changes to small business taxation Read More…
Disclaimer
The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided on this page.
ABOUT THE AUTHOR
ALLAN MADAN
CPA, CA
Allan Madan is a CPA, CA and the founder of Madan Chartered Accountant Professional Corporation. Allan provides valuable tax planning, accounting and income tax preparation services in the Greater Toronto Area.
Dear Allan, thanks for the informative video, we know(correct me if wrong!) that the good will occurs when a person or corporation buys another corporation, where the difference between the paid price is higher than the value of the assets of the purchased company, from my research I have found that the goodwill was not allowed to be depreciated before(only a sort of impairment should be conducted annually) and now you have said that the we can depreciate it according to the new CCA by 7.5% for the first year and 5% for later, please advise for the history of the goodwill why it was not allowed to be depreciated and now it is allowed to be depreciated.
thanks
Hi DIAB,
Purchased goodwill (class 14.1) can be depreciated. Goodwill for tax purposes can arise when the assets of a business are purchased for more than their market value. A share purchase does not result in Goodwill for tax purposes.