Capital Dividends

They say the best things in life are free. That’s what Capital Dividends are to …

They say the best things in life are free. That’s what Capital Dividends are to shareholders of Canadian small businesses. When a Canadian controlled private corporation generates a capital gain from the sale of investments or the sale of capital assets, such as land or business goodwill, one half of the gain is subject to corporate income tax. So what happens to the other half of the gain? How to Pay your shareholders tax-free? The …

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Tax Time Fall Economic Updates Dec 2018

Tax Time – Fall Economic Updates – December 2018

The Federal, Ontario and Quebec governments have all issued Fall Economic Updates over the course of the last several weeks. We have summarized the key items from each update below. FEDERAL ECONOMIC UPDATE On November 21, 2018, Finance Minister Bill Morneau released the Liberal government’s Fall Economic Statement projecting continuing spending deficits into the 2022-2023 fiscal years. The government is proposing three immediate changes to Canada’s tax system, in order to enhance business confidence in …

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Important Changes Ahead of us for Tax Amnesty Programs

Important Changes Ahead for U.S. Tax Amnesty Programs

Over the past several years, the IRS has implemented various amnesty programs aimed at reducing the number of delinquent US tax filers. Earlier this year, the IRS announced that one of these programs – the Offshore Voluntary Disclosure Program (OVDP) – would end on September 28, 2018. More than 56,000 taxpayers have taken advantage of this program under which the IRS has collected more than $11.1 Billion in back taxes, interest and penalties. In the …

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To Buy or to Lease - that is the Question

To Buy or Lease – That is the Question

One of the questions that we get asked a lot by clients is whether it is better to lease or to buy a vehicle. The tax consequences are quite different depending on what option you choose. Buying If you purchase a vehicle then you can only claim a percentage of the vehicle’s cost as capital cost allowance (i.e. depreciation) each year. The first year you are entitled to claim 15% of the cost and in …

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Succession Planning - Two Sales Assistant At Vegetable Counter Of Farm Shop

Succession Planning: Don’t Blame the Taxman if you Failed to Prepare

Your retirement plan is to sell your business. Fair enough. But will the proceeds be sufficient to support your desired standard of living in retirement? This is my last post on the subject of succession planning. In my previous post, I presented some of the considerations and options that pertain to passing on a business to heirs that may be children or other family members. Selling to a third-party outside of family can be more challenging. As …

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