Category: Business & Corporate Tax

Is it possible to merge two corporations tax free?

In order for two corporations to merge their businesses tax free, in Canada, the following conditions must be met before the merger: All of the corporations must be Canadian corporations. However, this does not mean that they nessecarily have to be CCPC, they only have to be considered to carry on active business in Canada. … Continue reading Is it possible to merge two corporations tax free?

How do I deduct work-in-home expenses under my corporation?

It’s very common for some small businesses to fully operate out of a room in the house.  If you operate as sole-proprietor you can deduct eligible work in home expenses on your personal tax return (T1). If you’re operating as corporation you can charge it as rent expense, which will reduce your corporation’s taxable income and … Continue reading How do I deduct work-in-home expenses under my corporation?

How do I report income earned from a business I operated?

Question: I am a full-time employee of ABC Corporation, but I also earned some income from a separate business I operated this year. How do I report this income? (My business is a sole proprietorship). Answer: As you would include your employment income on your personal tax return, you will also need to do so … Continue reading How do I report income earned from a business I operated?

As a corporation, how does our low salary and high dividend influence our ability to collect CPP?

The CPP Retirement Fund is based on how much and for how long you contribute to the pension plan. When you pay yourself a low salary and a high dividend, it reduces the CPP payout when you retire. However, you will still be entitled to CPP benefits based on the CPP contributions you have made … Continue reading As a corporation, how does our low salary and high dividend influence our ability to collect CPP?

Can I write-off my computer as a business expense if I paid for it personally?

Question I need a new computer, and am going to buy a laptop at some point in the near future. I believe it is appropriate to write this off 100% as a business expense, since the computer will primarily be used in support of business purposes. Is it okay to purchase the computer using my … Continue reading Can I write-off my computer as a business expense if I paid for it personally?

Can I deduct golf dues and memberships as a business expense?

Generally speaking, golf dues and related memberships paid are not deductible for tax purposes. There is 1 major exception:   A deduction is allowed if you are an incorporated professional sports agent. The CRA ruling in regards to this is as follows:  If you can PROVE to the CRA that the primary beneficiary of the incurred golf … Continue reading Can I deduct golf dues and memberships as a business expense?

I am currently a small business owner and I have been classified as an accelerated payroll remitter. What does this mean and what can I do to change the classification?

An accelerated payroll remitter is required to make bi-weekly payroll remittances the CRA. The government determines this classification based on financial information based on 2 years prior to current year. Contact us and we can assist you with the reclassification process.

What are business accounting services?

Business accounting services can be defined as “tools that enable you to make effective management decisions for a business”.   To elaborate, business accounting services include (but are not limited to): Financial Statement Preparation Bookkeeping Tax return preparation Tax planning You Need Business Accounting Services in Mississauga Every business in Mississauga, whether large or small, … Continue reading What are business accounting services?

I’m thinking of incorporating my small business. Should I incorporate and can you help?

As a Small Business Accountant and Chartered Accountant in Mississauga, we can help you incorporate your new or existing business. Criteria for Incorporation Whether you should incorporate depends on a variety of factors, including whether: Your business has sufficient revenues or profits to justify the costs associated with corporations; There are any tax savings for … Continue reading I’m thinking of incorporating my small business. Should I incorporate and can you help?

How can corporate tax return preparers in Toronto minimize my taxes and my company’s taxes?

While we all must pay our fair share of tax, you should not have to pay more in tax than you are required to.  As Corporate Tax Return Preparers in Toronto, we are aware of numerous tax strategies to minimize taxes. Tax Savings Strategies Some examples of tax savings strategies include: 1.    Payment of Dividends … Continue reading How can corporate tax return preparers in Toronto minimize my taxes and my company’s taxes?

Do you offer small business accounting services in Toronto & Mississauga?

Yes, at Madan Chartered Accountant, we offer small business accounting services for companies in Toronto, Mississauga and elsewhere in Canada. We have performed small business accounting services for Toronto companies in numerous industries, such as consumer business, wholesale and distribution, technology, business services and manufacturing. Services Our small business accounting services in Toronto include, but … Continue reading Do you offer small business accounting services in Toronto & Mississauga?

Can inadequate business accounting services cause my business to fail?

Yes, inadequate business accounting services can cause your business to fail, which is a very scary thought. Below, I have listed four examples of poor business accounting services, which could cause your Toronto company to fail. 1. Weak internal controls Internal controls are policies and procedures that are designed to promote efficiencies in business operations, … Continue reading Can inadequate business accounting services cause my business to fail?
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