Incorporate a business

Question

2104 viewsMarch 26, 2019Accounting

0

Anne (anonymous) Posted March 26, 2019

Hi Madan&Group,
I incorporated my sole proprietorship in December 2018.
1. Can I choose to report all the income and expenses in 2018 as my sole proprietorship income and start to report 2019 income as corporation income?
2. There are two assets in my proprietorship: a computer (transferred to corporation by purchase agreement)and vehicle(does not worth much, not transferred to corporation). Do I charge GST and PST on computer purchase agreement? When I dissolve my proprietorship, is my vehicle deem to be sold due to change of use and pay GST and PST on this deemed disposition ?

Thanks very much for your time to look at my questions.

1 Answer

score 0 · Answer 1 · 2019-03-26T15:43:05+00:00

If you continued to collect payments and invoice customers from your sole proprietorship, then you can record the income on your personal tax return. You can fill out and file form GS44 to claim an exemption from collecting HST on the sale of your business assets to your new corporation. I’m assuming that your vehicle and computer were primarily used as business assets in your sole proprietorship, and so there is ‘no change in use.’

Incorporate a business

1 Answer

Mississauga's Thought Leader

REQUEST A FREE CONSULTATION

Pin It on Pinterest