The formalities of creating a valid trust and a valid will should not be underestimated. Oftentimes the statute of frauds or wills legislation applies where the formalities are not met. Courts of Equity generally look to a person’s intentions rather…
Accountants appreciate the importance of good record keeping. After all, accounting is the recording of transactions in a generally accepted presentation based on those records. Well maintained records are the foundation of a well-organized entity. And at the centre of…
While a sole proprietor is the simplest form of a business structure, there are considerations when selling such a business to minimize tax. As the sale of a sole proprietorship is a taxable event, it would be advantageous to include…
The organizational vehicle of the business you purchase will have tax implications. If you buy a sole proprietorship, you normally acquire its assets. This includes its inventory, equipment, leases, customer lists and so on. The purchase price allocated to each…
As a business operating as a sole proprietor finds success – the benefits of a sole proprietorship may be outlived and a conversion to a corporation should be considered. However, the tax impact of this transfer must be planned for…
Sole proprietors do have planning opportunities to minimize their taxes. This includes using start-up losses against other personal income as well as considerations of timing of acquiring business assets and income spitting opportunities. Tax planning is an ongoing process that…
The type of business structure you choose has a significant effect on the way you report your income. From a legal standpoint, a sole proprietor is indistinguishable from its owner. It is an unincorporated business owned by one person and…
With the varying forms a business entity can take – incorporating has significant benefits under tax legislation. It is imperative to consider that a corporation is a legal entity recognized as its own person under the law. This provides some…
If you have several businesses and are considering consolidating them into one, an amalgamation should be considered. The combination of businesses into one entity may be done to simplify a structure, consolidate losses of a group, reorganize the share structure,…
The Canada Workers Benefit is refundable tax credit that assists low-income workers as a work incentive. Who Receive the Benefit? To be eligible for the CWB, you must meet all of the following conditions; You were a resident of Canada…