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Address
39 Centre Street,
Thornhill, Ontario L4J 1G1
Tel: 905 771-1131
Fax: 905 763-7689
Email: info@accplus.ca
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| Business Tax Tips
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- If you are launching a new business, start-up
losses incurred by a corporation will not be
personally deductible. If you anticipate start-up
losses, and liability is not a concern, consider
starting your business as a sole proprietorship or
partnership and only incorporate once you become
profitable.
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- If you are planning to sell all or a part of your
business, try to structure the sale to be eligible for
the small business capital gains exemption available
for the sale of shares of a qualified small business
corporation.
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- An allowable business investment loss (ABIL) may
be claimed as a Canadian income tax deduction on a
non-interest bearing loan to a Canadian controlled
private corporation if there are other reasons for the
loan, such as dividends or management fees. This
principal has been affirmed by the Federal court of
Appeal in the Byram decision.
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- If you or your company has capital losses,
consider whether they qualify as "allowable business
investment losses" ("ABILs").This type of loss
generally arises where there is a loss on shares of,
or debt owing by, a small business corporation.Unlike
other capital losses, ABILs can be used to reduce
income other than capital gains, such as employment or
investment income.(You can only deduct 3/4 of the ABIL
amount and you must reduce it by any capital gains
exemption claimed in prior years).
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- When you're planning weekend getaways or your
summer holidays, consider whether there are any
business activities or side trips you can incorporate
into your travel plans.If you can, you may be able to
deduct a portion of your related expenses from your
income.
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- If you share the ownership of a private
corporation, it is usually prudent to have a
shareholders?agreement, which sets out the
shareholders?rights and obligations beyond the basic
ownership of shares.?Typically a
shareholders?agreement will provide for the orderly
termination of the relationship between the
shareholders, if there is a future disagreement.?For
example, your shareholders?agreement can include a
"shotgun" buy-out clause that will provide that, if
Shareholder A offers to buy out Shareholder B,
Shareholder B must either accept Shareholder A’s offer
or buy out Shareholder B for the same
price.
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