Questions Archive

Are royalty fees a deductible Business Expense?

Hello, Are royalty fees a deductible Business Expense for small or large tech companies in Canada? For example a royalty fee (charged as a percentage of sales revenue of said product) for the use of a software product/license. Thanks, SV

What’s the capital gains tax rate in cana?

Hello, What’s the capital gains tax rate in canada, for example when selling one’s company? Thanks, SV

Incentives for moving business to canada?

Hello, Are there currently any significant incentives, such as paying no taxes or no capital gains tax for x number of years, for a US-based company relocating to Canada? Thanks, SV

Up to what revenue amount or Number of employees is a company considered a “Small Business”?

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starting a freelance business

Greetings, I saw one of your youtube videos and I have a question about business structure. I want to start a Freelance business doing digital marketing and I want to do Uber on the side. Being a newcomer with no credit history, is it better for me to start as a Sole proprietor or as … Continue reading

Non-Resident Withdrawal – RESP

Continue with the question “What Happens To Your Child’s RESP When You Leave Canada?”. What will happen when I withdraw RESP for my non-resident child college? Is there a 25% tax hold on capital growth and tax hold on $7200 limit? The account owner is non-resident status also. Thanks

Selling Expenses

Hi I like the simple, yet understandable information you have here. But I am a bit confused on the cost part. As mentioned, if preparing the property for sale, I incurred costs like painting and putting in a new boiler, I should claim it under my personal taxes? But since its cost to prepare the … Continue reading

How to report cash foreign inheritance

If I receive a cash amount of inheritance from my father in my country of origin, and I keep it in a bank account there, how do I report it to the CRA. It is inherited directly, not through a trust. Which forms to use ? Any other documentation required ?

Selling property in Costa Rica

We are Canadian citizens who moved to Costa Rica and purchased a property. We are selling and moving back to Canada (have only been gone from Canada for 1.5 years). We did not make any money in the sale, we broke even, and will be depositing the same amount into our Canadian account that we … Continue reading

how to reduce capital gains paid when selling a business?

Good day Mr. Madan, I’ve got a restaurant business that I am interested in selling. However the price that I bought it at compared to the price that I can now sell it at is has a large variance hence I would have to pay a large amount for capital gains. I would be using … Continue reading

Working as a consultnt for US Compny without any entity in Canada

Hi Allan, Me and my wife have recently moved to Canada from India and our previous employer in US wants to continue with us as consultants. They asked us to send the invoice and will pay us in Canadian dollars but they do not have any Canadian entity. I wanted to know the best way … Continue reading

80k in dividends

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Set up Online Business & Rental property business

Hi Mr. Madan, I am going to set up an online business and a rental property business. I have a few questions in mind before I set up a meeting with you. 1. How much for setting up a new corporation company? What if more than one company, how much you will charge for that … Continue reading

Can Sole Proprietor have 100% foreign business income

Hi Allan, I am working as a freelance technical solutions provider in a mideastern country. Due to my family and home being in Canada, I am a Canadian Tax resident. As of now, I just send monthly expenses to my family. But can I set up a sole proprietorship in Canada and declare my overseas … Continue reading

Canadian Doing Online Business in US

Hello, I am a Canadian tax resident and I am building an online business which I wish to register as an LLC in the US. I have, until now, only ever operated a business as a Canadian sole proprietor (in Ontario) – providing freelance services. Very simple. Now, I really need advice. It’s easy to … Continue reading

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