Frequently Asked QuestionsWe answer your most pressing questions on optimizing your business taxes and avoiding common tax pitfalls.

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Every business is unique, and there are many factors to consider before deciding whether to incorporate your business. Factors such as the amount of profit generated, personal needs, business goals, legal liabilities, and potential lawsuits are all critical factors to consider.

There are many ways to reduce your business taxes, including various deductions, wages to family members, tax credits like the Co-op Tax Credit, and the Scientific Research & Experimental Development (SR&ED) credit. Working with us we will ensure you are taking full advantage of these opportunities.

If your business is not incorporated, it must be incorporated before selling it. Suppose the purchaser buys the shares of your corporation, and the business is a Qualifying Small Business Corporation. In that case, each shareholder can have up to a $1,250,000 capital gain and potentially pay no personal taxes on the gain. Proper planning can minimize the income tax liability.

This depends on the amount the vehicle will be used for business purposes versus personal use. There are both income and corporate taxes to consider, so each case needs to be examined individually to determine the best course of action.

The tax considerations are more about the timing of the tax savings. Lease payments are deductible when made, and the HST on the payment is an input tax credit (ITC) and is recoverable. If the corporation buys the vehicle, all the HST is recoverable, and a portion of the vehicle is deducted from the tax return each year.

Again, each case is different and requires a personalized approach. We can help you with this decision once we review your business and needs.