Critical Tax and Financial Issues for PEI Business Owners
|
|
- Osborne Page
- 8 years ago
- Views:
Transcription
1 Critical Tax and Financial Issues for PEI Business Owners While written from the perspective of an entrepreneur starting a business, the financial issues I discuss in this article should be well understood by all business owners, regardless of how long they have been in business. When I meet with a business owner for the first time, it normally takes up to three hours to touch on the many issues I think are minimum knowledge requirements. Certainly, some items are not applicable to certain business situations; others are critical. I will discuss the following topics: (a) Business Planning (b) Structuring Your Business (c) Year-end Selection (d) Employee Issues (e) Tax Deductions (f) Income Splitting (g) Taxable Benefits (h) Sales Taxes (i) Estate Planning (a) Business Planning Obviously, new entrepreneurs need a business plan, well thought out and prepared by themselves, perhaps with some assistance. A crucial first mistake is often a lack of planning, or too much reliance on a professional advisor in preparation of a plan. You need to understand your plan, know the risks and know how to mitigate these risks and achieve your goals. You need to be able to explain it to your banker yourself because your advisor is not going to run your business you are! It is very unlikely you will have any recourse against a consultant if the plan fails. Know your plan and the underlying facts and figures, and if your don t believe them, change the plan or stop there. Your life s savings and your reputation are on the line protect them. (b) Structuring Your Business You basically have two choices of business structure - incorporation or not. Within these two choices, there are other alternatives that I will not discuss here, such as partnerships and joint ventures. The biggest reason to incorporate these days is for limiting your liability against creditors. If your business is unable to pay its bills, incorporation will prevent creditors from seizing your personal assets except to the extent you have given personal guarantees. Most lenders require personal guarantees; other creditors usually do not.
2 Incorporation can be useful for tax benefits if you earn income that can be left within the company for reinvestment. Small businesses in PEI (earning less than $500,000 starting in 2009) pay tax at less then 14% while personal tax rates in PEI range from about 25% to 47%. At first glance, it appears that savings in a corporation can be substantial; however, when the money is removed from the corporation, additional taxes are payable. Therefore, all you really have may be a deferral of tax. On the other hand, with proper planning and timing of your withdrawals, you may be able to lower your combined personal and corporate tax rate for absolute savings. There are other issues to consider in making the important decision on whether to incorporate. Advantages may include sharing income with family members to reduce tax; sharing ownership to achieve estate planning goals; to be eligible to use the small business capital gains exemption; to access special tax deductions available to real estate developers; etc. A discussion of these purposes are beyond the scope of this article. There are disadvantages to consider also, including set up costs, annual tax preparation fees, and specific rules governing payments made for personal use. Regardless of the type of business, if there are two or more owners, a buy-sell agreement between owners is mandatory for your protection in the event of death, disability or voluntary or involuntary departure of an owner. (c) Year-End Selection An unincorporated business is taxed as part of your (or you and your partners) personal tax return. The government requires the business to calculate its income on a calendar year basis using December 31 as a fiscal year end. Corporations file separate tax returns, and may select any day of the year as the end of their fiscal year. The first year cannot exceed 53 weeks. When choosing a fiscal year-end, there are a number of factors to consider. Choose wisely; the CRA requires a good business reason for you to change it later. Consider the following, and talk to your professional accountant before deciding: (i) When does your business cycle end? For example, for tourist operators, their profit picture will be best in the fall, immediately after the end of their busy season. This may be your choice if you want your financial reports to look their best. On the other hand, to maximize tax write-offs, a tourist operator would choose April, after a winter of expenses and no revenue. ii) When is it most convenient for you to finish your bookkeeping and meet with your accountants? (iii) A corporation may declare tax deductible bonuses and not pay them for up to 180 days after year-end. For tax planning purposes, a fiscal year-end in the latter half of the calendar year would allow you to choose to pay the bonus to yourself in either the current or following calendar year, depending on what is best for your personal tax situation.
3 (d) Employee Issues When you hire people to work for you, there are very specific tax withholdings and reporting requirements. In years gone past, payments of small amounts as casual labour were allowed without reporting. Those days are gone. Almost all payments to workers require withholdings of Employment Insurance premiums. With few exceptions, CPP premiums and income tax must be withheld. You need to register with the Workers Compensation Board, and you are governed by Occupational Health and Safety standards. If a worker purports to be self-employed, make sure they are. If you hire someone on the same terms as you would hire an employee, then you must withhold payroll deductions. If you do not, you can be held accountable later, and may be required to pay both your share plus the employee s share of EI and CPP premiums, as well as penalties and interest. When in doubt, CRA will provide you with a ruling on whether they are employed or self-employed. If you are in the construction industry, you must also submit an annual information report to the CRA stating the amount of payments made to subcontractors. Individuals may approach you wanting to work under the table because they are collecting Employment Insurance or are not planning to report the amounts for tax purposes. Agreeing to such terms is playing with fire, with potentially devastating costs. When an employee leaves your employ, voluntarily or involuntarily, you must complete a Record of Employment for EI purposes. Complete the form correctly, with the appropriate reason for termination and allocation of insurable hours. If the form is adjusted to help the employee improve his or her EI claim, you could be held liable for fraud, with related fines and charges. (e) Tax Deductions When running a business, it is important that you understand which expenditures are tax deductible and which ones are not. I will attempt to provide you with an overview. First, there are three common types of expenditures with differing tax treatments. These include expenses of short-term benefit, expenditures of a capital nature that provide long-term benefits and a special category entitled eligible capital expenditures, being primarily payments for intangible items without a specified useful life. Generally speaking, expenditures may not be deducted except to the extent that they are made by a taxpayer for the purpose of gaining or producing income from a business or property. In addition, the amounts must be reasonable in the circumstances. The Income Tax Act defines limits on many types of expenditures, and obviously prevents personal expenditures from being tax deductible. For example, unless you are traveling away from your own municipality for at least 12 hours, most meals are only deductible to the extent of 50%, and then only if you are entertaining a business contact. In addition, an expense made for the use or maintenance of a yacht, a camp, a lodge or a golf course facility are not deductible unless your business is providing such properties for
4 hire or reward. Another example of a non-deductible expense is membership fees or dues in any club that has dining, recreational or sporting facilities for its members as its main purpose. However, as a rule, your should carefully examine all of your expenditures to determine if they relate to your business, and if so, claim them accordingly. When in doubt, keep a record and call your tax advisor. An expenditure made that has long-term benefits will not be immediately deductible. For example, when you purchase office equipment, a building or a vehicle, the cost of these items must be allocated over a number of future years in the form of depreciation (also called amortization or capital cost allowance ). For example, equipment may be claimed at a rate of 10% of its cost in the first year, and 20% of the remaining undepreciated cost in each subsequent year. When buying these types of assets, called capital assets, you may be entitled to additional tax benefits in certain industries. Farmers, fishers, manufacturers and processors, for example, may claim a 10% federal tax credit on the purchase of certain new equipment. The Province of PEI offers an additional 10% - 35% tax credit in certain very limited situations. There are also special rules which limit your tax deductions and GST rebates on certain passenger vehicles costing over $30,000 (the 2009 limit, which may change year to year). A number of tax questions arise over vehicles used for business and personal purposes. If you are incorporated, should the corporation own the vehicle? Should the vehicle be leased or purchased? How much of your cost can be claimed and GST recovered in each situation? The answers depend on your situation and need to be reviewed with your advisor. However, maintaining a log of your travel kilometres, segregating business from personal, is essential to avoid costs in a tax audit. If you purchase goodwill, purchase a franchise with no expiry date, or incur incorporation costs to establish a business, these are considered eligible capital expenditures. Your tax deduction is limited to amortization of 75% of the original cost. This amortization is at the rate of 7% of the unamortized balance remaining from the prior year. You should seek advice when you use certain assets, such as vehicles, your home or computers for both personal and business use. Specific calculations are required for income tax and GST purposes in these cases. With the complex rules of what is deductible, what is partially deductible and what is not, you can see the importance of having a professional tax advisor work with you in preparing your tax returns. In some cases, there may be appropriate ways to structure your business affairs to improve your tax deductions. For example, when borrowing money, you should discuss possible opportunities to structure the loan as a business loan prior to completing the transaction. In addition, if you are transferring personal assets to your business, upon commencement of the business or later, you should ensure that the appropriate tax deductions are obtained.
5 (f) Income Splitting Income splitting is the ability to share income among family members to reduce overall taxes. One way to do this is to share the ownership of the company. Since the Canada Revenue Agency (CRA) requires family members to pay fair market value for their investments, one should consider sharing ownership at the time of startup when the business has no value. At that time, family members can invest in ownership for nominal sums of money. Therefore, plan how you want business profits (or losses) to be shared, and structure the ownership of the business accordingly. You may also wish to consider ownership by use of a family trust, which I discuss briefly under the heading Estate Planning. Are you not sure about ownership structure? Business ownership can always be changed later if all owners agree. However, to avoid immediate tax costs, there are special tax and legal procedures that need to be followed and you should get professional advice. Although it may cost more later to change, sometimes keeping your structure simple until you know for sure what you want makes sense. Professional advice is essential at this stage of your decision making. Another way to split income is by payment of wages to family members. It is important that you pay no more than a fair wage for work performed by family members, especially if they are not owners, to avoid the wrath of the Canada Revenue Agency. However, in 2006, a person with no other income can earn up to $7,400 in PEI and pay no tax. When employing family members, you should obtain a ruling from the CRA as to whether you need to withhold Employment Insurance premiums. All employees, family or not, must start contributing to the Canada Pension Plan at age 18. (g) Taxable Benefits If you are incorporated, use of company assets or payment of personal expenses by the company will result in benefits that must be reported on your personal tax return. Neglecting to properly allocate personal benefits can result in significant tax penalties. Common situations that need to be considered include: (a) Borrowing money from the business in excess of funds that you lent to the business; (b) Having a business vehicle available for personal use; (c) Payment of life insurance premiums by the business; (d) Incorrect allocation between personal and business expenditures; (e) Allocation of certain normally deductible benefits to shareholders but not to other employees. Ensure that you get proper tax advice in these and similar areas.
6 (h) Sales Taxes If you sell over $30,000 worth of taxable goods and services, you are required to register for Goods and Services Tax (GST) (Harmonized Sales Tax (HST) in the other Atlantic Provinces). Until you have sales of $30,000, registration is optional and you should seek advice on whether to register or not. If you are certain to exceed this level of sales, I recommend that you register immediately upon establishment of the business. In this way, you are entitled to a rebate (called an input tax credit) for all GST paid on expenditures, whether they are purchases of capital assets or day to day expenses. On the other hand, of course, you must charge GST on all of your sales. The difference between GST collected and paid out must be remitted to the Federal Government on a regular basis, the frequency of which depends on the amount of your sales. Most small businesses remit on a quarterly basis, although there are other options. At the time you establish your business, it is important to examine the implications for GST and provincial sales taxes (PST). You may be entitled to a rebate on GST previously paid on personal assets being converted to business use. On the other hand, you may be required to self-assess and remit PST on assets being converted to business use. Depending on the type of business, you may also be required to collect PST on your sales. Unfortunately, you are required to pay PST on many of your purchases regardless of whether you are a collector or not, and PST paid is not refundable like the GST. When you purchase product to be consumed in Prince Edward Island from off-island sources, you are entitled to a full rebate of the GST or HST (if you are registered). However, you are also required to remit PST to the Province of PEI on a self-assessment basis. Remember that PST is paid on the GST-included price when doing your self-assessment calculations. Items purchased for resale do not incur PST when you buy them. For example, purchase of inventory does not incur PST because you will charge PST to the customer when you sell that inventory. However, remember that you must self-assess PST on any inventory transferred to your own personal or business use. Special PST rules apply to certain industries, such as farming, fishing, construction, manufacturing and processing. Again, getting professional advice early is important. (i) Estate Planning Estate planning is looking ahead to your death and determining how ownership of your business should be transferred. As a first step, immediately update your Last Will and Testament. In your Will, deal with disposition of all your assets, including your business. As a general rule, all assets can be transferred to your spouse without immediate taxes. All other transfers, including those to your children, will be taxable. Careful planning is required to treat your beneficiaries fairly (which is not necessarily the same as equally ). Some assets will
7 be fully taxable upon transfers to individuals other than your spouse, others may be partly taxable, and others tax-free. Your estate must pay your final debts, including taxes, so you may need life insurance to avoid sale of the business to pay income taxes on the value of that very same business. After completion of your Will, prepare a Power of Attorney, giving a trusted friend or family member the ability to act on your behalf in the event that you become incapacitated. If you are seriously injured or acquire a disease resulting in mental incapacity, it is important that someone can immediately act on your behalf with respect to important matters, both personally and within the business. Purchase disability insurance, and also consider critical illness and long-term care insurance to meet significant financial obligations that often accompany disability. Life insurance is not a tax-deductible expense for your business unless required by a lender for collateral. However, in certain cases, it is still beneficial for the insurance to be owned by a corporation seek additional advice in this area. Also note that if you pay disability insurance premiums personally, resulting benefits will be tax-free. However, if your business claims any portion of the premiums as a tax deduction, the full benefits will be taxable to you. If you are sure that certain family members will continue operating the business after your death or retirement, you may want to establish a discretionary family trust when you set up your business. A trust is a form of structure where one or more trustees hold property, in this case, a business corporation, in trust for certain individuals, known as beneficiaries. The beneficiaries would be your family members. Such family trusts are usually set up as discretionary allowing the trustees to decide to whom income and ultimate ownership of the company should go. For example, if you have two children, and one becomes dis-interested in the business, the income and future ownership can be allocated to the other child. Trusts can also have tax benefits when dealing with beneficiaries age 18 or over. Use of trusts can be complex and need to be fully explored with your professional tax and legal advisors. Conclusion My experience is that many business owners have great ideas that become unsuccessful because, as entrepreneurs, they are too anxious to get started and do not have the patience or expertise to lay out the proper groundwork. Do yourself and your family a favour; spend a few dollars up front to protect your life s savings. Get professional advice before starting. Do not act on any advice in this article without exploring your personal situation with a professional accountant. Rules change, individual circumstances differ, and you may have interpreted my comments incorrectly.
8 As should be apparent by now, there are many issues to consider when setting up your business. I have discussed many of the topics in this article, but not nearly all of the issues to be considered that are particular to individual cases. Blair Corkum, CA, R.F.P., CFP, CLU, RHU, FDS is owner of Corkum & Associates Chartered Accountants ( and has been providing financial advice to individuals and business owners since This publication has been produced to inform readers of current issues. It is neither a definitive analysis of the law nor a substitute for professional advice. Seek professional advice before acting on information in this article. Information may change as a result of legislation or regulations issued after this publication was printed. Blair Corkum 2006
INCORPORATING YOUR BUSINESS
November 2014 CONTENTS Advantages of incorporation Advantages of an SBC Summary INCORPORATING YOUR BUSINESS If you carry on a business, there are many tax planning opportunities which become available
More informationAccounting For Your Future INCORPORATION OF PROFESSIONALS IN ONTARIO. Details of the Legislation (Ontario Business Corporations Act)
Accounting For Your Future INCORPORATION OF PROFESSIONALS IN ONTARIO Author: Hugh Faloon, CA, CFP, TEP, Tax Partner Status of Particular Professional Bodies The following professions have been allowed
More informationCollins Barrow. Chartered Accountants
Income Tax for Small Business Presented by Jason Timmermans, BA, CA Partner KMD Introduction Information package What are you hoping to get out of today s session? Agenda Basics of Canadian income tax
More informationCANADIAN CORPORATE TAXATION. A General Guide January 31, 2011 TABLE OF CONTENTS INCORPORATION OF A BUSINESS 1 POTENTIAL ADVANTAGES OF INCORPORATION 1
CANADIAN CORPORATE TAXATION A General Guide January 31, 2011 TABLE OF CONTENTS PART A PAGE INCORPORATION OF A BUSINESS 1 POTENTIAL ADVANTAGES OF INCORPORATION 1 POTENTIAL DISADVANTAGES OF INCORPORATION
More informationTax Planning Opportunities Involving Professional Corporations
Tax Planning Opportunities Involving Professional Corporations A Discussion Paper Prepared by: Alan Koop, CA Prepared for: The Saskatchewan Provincial Court Judges Association Table of Contents Executive
More informationDEDUCTING EXPENSES AS AN EMPLOYEE
DEDUCTING EXPENSES AS AN EMPLOYEE Employees are very limited in the expenses that they can deduct in calculating the tax they owe to the Canada Revenue Agency ( CRA ). Self-employed individuals have much
More informationIncorporating your farm. Is it right for you?
Incorporating your farm Is it right for you? RBC Royal Bank Incorporating your farm 2 The following article was written by RBC Wealth Management Services If you have considered incorporating your farm,
More informationTAX PLANNING FOR CANADIAN FARMERS
April 2014 CONTENTS Annual tax planning issues Income tax deferral Incorporating your farming business Long-term planning issues Taxation of capital gains Maximizing your capital gains exemption claims
More informationSELF-EMPLOYMENT: IS IT FOR YOU?
July 2015 CONTENTS The advantages and disadvantages of being your own boss Can I become an independent contractor? Improving your chances The tax advantages of being self-employed Deducting expenses Selecting
More informationSmall Business Start Up Kit
INTRODUCTION: Getting your new business started off on the right foot can be a daunting task. Whether you are an entrepreneur starting from scratch, or leaving the workforce to enjoy the autonomy and challenge
More informationBusiness Chapter 13 Cases: The Self-Employed Debtor
Business Chapter 13 Cases: The Self-Employed Debtor (Friday, March 23, 2012, 1:45pm - 2:25pm) Presented by Douglas B. Jacobs, California Consumer Bankruptcy Attorney This presentation will discuss: 1.
More informationIncome Taxes module. After covering the topics in the module booklets or web pages and this workshop, learners will be able to:
Income Taxes module Trainer s Introduction Most people are aware that they must file an income tax return in Canada, if only to claim back any excess taxes that were withheld from their income. Filing
More informationHow Can You Reduce Your Taxes?
RON GRAHAM AND ASSOCIATES LTD. 10585 111 Street NW, Edmonton, Alberta, T5M 0L7 Telephone (780) 429-6775 Facsimile (780) 424-0004 Email rgraham@rgafinancial.com How Can You Reduce Your Taxes? Tax Brackets.
More informationApplebaum Commisso Tax Tips
Tax Tips Corporate: Tax information everyone should know: Small business deduction: The effective tax rate for a corporation that is defined as a Canadian Controlled Private Corporation is 15.5% on the
More informationRetirement Compensation Arrangement
tax efficient retirement planning tool business GUIDELINES Retirement Compensation Arrangement Supplement Retirement Income while providing Tax Deductible contributions RRSPs and Pension Plans provide
More informationProfessional Corporations An Attractive Option
Professional Corporations An Attractive Option Recent and planned corporate income tax rate reductions mean that now is a good time for eligible professionals to consider incorporating their practices.
More informationOntario Psychological Association. Accounting for your Private Practice
Ontario Psychological Association Accounting for your Private Practice Presented by: Regina Baezner, CPA, CA, Partner Andrea Guenther, CPA, CGA, Senior Manager February 19, 2015 Agenda Taxation 101 Employee
More informationIncludes Tips & Tricks that could save you substantial $$$ and help make sure your claims get paid.
Includes Tips & Tricks that could save you substantial $$$ and help make sure your claims get paid. WHAT IS INSURANCE? It s simply the transference of a risk from yourself to the Insurer. By paying the
More informationAUTOMOBILE EXPENSES & RECORDKEEPING
February 2015 CONTENTS Who should keep records? Expenses to track Deductible expenses Keeping a kilometre log Business vs. personal Other motor vehicles The standby charge GST/HST and QST considerations
More informationIntroduction to Payroll. Employer, Payer, or Trustee
Introduction to Payroll The Canadian payroll system is a rather complex process, requiring employers to make proper distinctions between workers, collecting deductions from their income, remitting those
More informationDEDUCTING EXPENSES AS AN EMPLOYEE
July 2015 CONTENTS When are expenses deductible? What s deductible? Office rent/home office expenses Special considerations for ownermanagers Planning to maximize tax breaks Special situations Documentation
More informationProvinces and territories also impose income taxes on individuals in addition to federal taxes
Worldwide personal tax guide 2013 2014 Canada Local information Tax Authority Website Tax Year Tax Return due date Is joint filing possible Are tax return extensions possible Canada Revenue Agency (CRA)
More informationA Corporate Insured Stock Redemption Buy-Sell Plan
A Corporate Insured Stock Redemption Buy-Sell Plan While the death of a shareholder may have no legal effect on a closely-held corporation, without advance planning there are some very real practical consequences
More informationThe Individual Pension Plan. An opportunity to have your cake and eat it too!
Special Report An introduction to: The Individual Pension Plan An opportunity to have your cake and eat it too! Gerard Hass, CA, CFP, CFA Portfolio Manager Raymond James Ltd. 1 What is an Individual Pension
More informationA Sole Proprietor Insured Buy-Sell Plan
A Sole Proprietor Insured Buy-Sell Plan At a sole proprietor s death, the business is dissolved and all business assets and liabilities become part of the sole proprietor's personal estate. Have you evaluated
More informationINCORPORATING YOUR FARM BUSINESS
February 2016 CONTENTS Advantages of incorporation Advantages of an SBC and an FFC Other considerations Summary INCORPORATING YOUR FARM BUSINESS If you carry on a farm business, and have significant income,
More informationUnderstanding Business Insurance
Version 4.0 Preparation Date: 2 November 2009 This document provides some additional information to help you understand the financial planning concepts discussed in the SOA in relation to business insurance.
More information2015 YEAR END TAX & SUPERANNUATION PLANNING GUIDE
2015 YEAR END TAX & SUPERANNUATION PLANNING GUIDE We are pleased to provide our year end tax planning guide for 2015. Tax Planning should be done on a regular basis throughout the year. However, these
More informationNOLO. Nolo s Guide to Limited Liability Companies: Forming an LLC
NOLO Nolo s Guide to Limited Liability Companies: Forming an LLC Table of Contents LLC Basics...3 Limited Personal Liability for LLC Owners...3 Exceptions to LLC Owners Limited Liability...4 LLC Management...4
More informationProfessional Corporations Is One Right for You?
Professional Corporations Is One Right for You? Recent and planned corporate income tax rate reductions mean that now is a good time for professionals to consider incorporating their practices. The low
More informationMoss Adams Introduction to ESOPs
Moss Adams Introduction to ESOPs Looking for an exit strategy Have you considered an ESOP? Since 1984, we have performed over 2,000 Employee Stock Ownership Plan (ESOP) valuations for companies with as
More informationUnderstanding business insurance
Version 4.2 This document provides some additional information to help you understand the financial planning concepts discussed in the SOA in relation to. Important information This document has been published
More informationFACTS & FIGURES. Tax Audit Accounting Consulting
FACTS & FIGURES Tax Audit Accounting Consulting FACTS AND FIGURES FOR TAX PREPARATION AND PLANNING JULY, 2013 CHAPTER 1B PERSONAL INCOME TAX 1.1 Federal Tax Rates - Individuals... 1 1.2 Federal Personal
More informationThis article, prepared by PARO s auditors Rosenswig McRae Thorpe LLP, outlines some points to consider in preparing your income tax returns.
2014 Edition for 2013 Returns This article, prepared by PARO s auditors Rosenswig McRae Thorpe LLP, outlines some points to consider in preparing your income tax returns. Remember that: RRSP Contribution
More informationYou and your shares 2013
Instructions for shareholders You and your shares 2013 For 1 July 2012 30 June 2013 Covers: n individuals who invest in shares or convertible notes n taxation of dividends from investments n allowable
More informationProtecting your family with insurance: How RBC Royal Bank can help
Insurance Protecting your family with insurance: How RBC Royal Bank can help At RBC Royal Bank, we know that you ve worked hard to get here and build a new life. Insurance helps protect what you have from
More informationAre Insurance Premiums Deductible?
Are Insurance Premiums Deductible? August 2014 Can I deduct the premiums? That s a question you probably hear when you re presenting an insurance concept. Unfortunately, the answer is generally no insurance
More informationPrivate health insurance rebate and Medicare levy surcharge changes. June 2012
June 2012 IN THIS ISSUE Private health insurance rebate and Medicare Levy surcharge changes 30 June is around the corner Tax Changes affecting Small businesses Changes to the timing of Trust resolutions
More informationHowever, this week s announcement particularly in regards to big business audits includes a growing focus on the following areas:
Issue 5, August 2003 Briefly in Tax Taxation Specialists - Business Advisors THIS ISSUE ATO Spotlight is Bigger and Brighter for 2003-04 Areas under the spotlight with the ATO are expanding once again,
More informationCross Border Tax Issues
Cross Border Tax Issues By Reinhold G. Krahn December 2000 This is a general overview of the subject matter and should not be relied upon as legal advice or opinion. For specific legal advice on the information
More informationSmall Business Income Tax
Small Business Income Tax Forms of Business & how their taxes are paid. Keeping Records Legal requirements. Bringing Assets into a business. Fair market value. Earnings Fiscal period Income Expenses What
More informationTax and Small Business: Navigating the ATO minefield as June 30 draws closer
June 23, 2015 Tax and Small Business: Navigating the ATO minefield as June 30 draws closer The small business sector has variously been described as the engine room of the economy, as well as the biggest
More informationINCORPORATING YOUR PROFESSIONAL PRACTICE
INCORPORATING YOUR PROFESSIONAL PRACTICE REFERENCE GUIDE Most provinces and professional associations in Canada now permit professionals such as doctors, dentists, lawyers, and accountants to carry on
More informationUnderstanding Business Insurance
Level 7,34 Charles St Parramatta Parramatt NSW 2150 PO Box 103 Parramatta NSW 2124 Phone: 02 9687 1966 Fax: 02 9635 3564 Web: www.carnegie.com.au Guide Build Protect Manage Wealth Understanding Business
More informationDurable Power of Attorney For Finances
Durable Power of Attorney For Finances Choosing Someone to Handle Your Property And Finances in Case of Disability Washtenaw County Probate Court Shared/Social/Resources/DPOA for Finances FOREWORD We all
More informationaccount statement a record of transactions in an account at a financial institution, usually provided each month
GLOSSARY GLOSSARY Following are definitions for key words as they are used in the financial life skills resource. They may have different or additional meanings in other contexts. A account an arrangement
More informationEnd of financial year planning tips May 2014
End of financial year planning tips May 2014 With the end of the financial year fast approaching, it is a good time to review financial planning strategies with a view to optimising your outcomes. This
More informationRetirement Compensation Arrangements. Overview Advantages Disadvantages Retirement Options Plan Administration Chart Summary of RRSPs, IPPs & RCAs
Retirement Compensation Arrangements Overview Advantages Disadvantages Retirement Options Plan Administration Chart Summary of RRSPs, IPPs & RCAs Prepared by William Kennedy January 2013 1 What is an Retirement
More informationTHIS DOCUMENT CONSTITUTES PART OF A PROSPECTUS COVERING SECURITIES THAT HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933.
PM975d Deluxe Corporation Employee Stock Purchase Plan Summary and Prospectus THIS DOCUMENT CONSTITUTES PART OF A PROSPECTUS COVERING SECURITIES THAT HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933.
More informationPLANNING FOR A DISABLED BENEFICIARY
PLANNING FOR A DISABLED BENEFICIARY REFERENCE GUIDE This Reference Guide is intended to provide information and guidance for those whose estate planning objectives include providing for an individual who
More informationFinancial Information Kit
Financial Information Kit The purpose of this kit is to provide basic information on keeping financial records to facilitate compliance by registered charities with the requirements of the Canada Revenue
More informationFederal Budget 2014 by Jamie Golombek
February 11, 2014 Federal Budget 2014 by Jamie Golombek The February 11, 2014 federal budget included various tax measures that will affect individuals, registered plans, employers and trusts. Rather than
More informationBunting, Tripp IngleyLLP
Dear Clients and Friends, As the end of 2011 approaches, now is a good time to start year-end tax planning to minimize your individual and business tax burden. Generally, year-end tax planning involves
More informationAn Overview of Tax Filing Requirements for Real Estate Broker/Agents
An Overview of Tax Filing Requirements for Real Estate Broker/Agents A two-partner, 25 person firm with 80 years history servicing clients in the areas of: real estate, auditing, accounting, tax, valuation
More informationA Business Loan Insurance Plan
A Business Loan Insurance Plan Are you personally responsible for business loans? Table of Contents Page Do You Have to Sign Twice for Your Business Loans? 2 A Potential Solution Using Life Insurance 3
More informationTHE USE OF LIFE INSURANCE IN THE BUSINESS MARKET:
COMBINED INSURANCE COMPANY OF AMERICA THE USE OF LIFE INSURANCE IN THE BUSINESS MARKET: Using a Corporate Dollar to Pay Life Insurance Premiums Deductibility of Life Insurance Premiums Understanding the
More informationWITHDRAWING FROM YOUR IRA: A GUIDE TO THE BASIC DISTRIBUTION RULES
WITHDRAWING FROM YOUR IRA: A GUIDE TO THE BASIC DISTRIBUTION RULES Since IRAs are vehicles to encourage saving for retirement, penaltyfree regular distributions cannot start until after the account owner
More informationReliance Super. Taxation Supplement. 14 March 2014. a membership category of Maritime Super
Taxation Supplement 14 March 2014 Contents Tax on contributions 2 Tax on rollovers 3 Tax on investment earnings 3 Tax on super benefits 3 Spouse tax offset 7 Tax deductions for the self-employed 7 Low
More informationIRA Custodian Disclosure Statement and Plan Agreement
Deutsche Asset & Wealth Management IRA Custodian Disclosure Statement and Plan Agreement Retain these pages for your records. Custodian disclosure statement The following information is provided to you
More informationRetirement Compensation Arrangements
Retirement Compensation Arrangements When saving for retirement through registered Retirement Savings Plans (RSPs) and similar arrangements such as defined contribution pension plans there may be restrictions
More informationQP/401(k) Separation From Service Distribution Request Form
#10486 (3/2004) QP/401(k) Separation From Service Distribution Request Form This form may be used if you have separated from service due to termination, disability or attainment of normal retirement age
More informationINSTRUCTIONS FOR COMPLETING OFFICIAL FORM 7. STATEMENT OF FINANCIAL AFFAIRS (Revised 2/01) I. INTRODUCTION
INSTRUCTIONS FOR COMPLETING OFFICIAL FORM 7 STATEMENT OF FINANCIAL AFFAIRS (Revised 2/01) I. INTRODUCTION The Statement of Financial Affairs provides a summary of the debtor's financial history, transactions,
More informationGuide for Canadian Small Businesses
Guide for Canadian Small Businesses RC4070(E) Rev. 08 T he success of small businesses is an essential part of Canada s economic growth. At the Canada Revenue Agency (CRA), our goal is to provide all the
More information2014 Year-End Tax Planning Tips for Seniors, Employees, Families and Students
2014 Year-End Tax Planning Tips for Seniors, Employees, Families and Students While the end of 2014 is approaching, there is still an opportunity for individuals to review their financial situation with
More informationYour Benefits Under the IMRF. Regular Plan Tier 1. Illinois Municipal Retirement Fund. Helping you build a secure retirement
Your Benefits Under the IMRF Regular Plan Tier 1 Illinois Municipal Retirement Fund Helping you build a secure retirement table of contents Your Benefits at a Glance... 2 Why you participate in IMRF...
More informationINCORPORATING YOUR BUSINESS
INCORPORATING YOUR BUSINESS REFERENCE GUIDE If you are carrying on a business through a sole proprietorship or a partnership, it may at some point be appropriate to use a corporation to carry on the business.
More informationHCG Fact Sheet 30 June 2014 End of Financial Year Tax planning strategies
HCG Fact Sheet 30 June 2014 End of Financial Year Tax planning strategies If you are an employee, consider Sacrificing your pre-tax salary or bonus into super rather than receiving it as cash so you can
More informationGains on foreign life insurance policies
Helpsheet 321 Tax year 6 April 2013 to 5 April 2014 Gains on foreign life insurance policies A Contacts Introduction Page 2 Part 1 Types of policy Page 3 What sort of policy do you have? Page 3 When will
More informationFNMA Self-Employed Income Calculations
FNMA Self-Employed Income Calculations FNMA considers any individual that has a 25% or more ownership interest in a business to be self-employed. BUSINESS STRUCTURES Knowledge of the structure of the business
More informationDESCRIPTION OF THE PLAN
DESCRIPTION OF THE PLAN PURPOSE 1. What is the purpose of the Plan? The purpose of the Plan is to provide eligible record owners of common stock of the Company with a simple and convenient means of investing
More informationInsurance Corporate Insured Retirement Plan
Advisor Guide The BMO Insurance Corporate Insured Retirement Plan Because successful businesses need security and income Table of Contents Introduction to The BMO Insurance Corporate Insured Retirement
More informationBuying and selling an unincorporated business
Introduction This section covers the main tax issues that arise when buying or selling a business owned by a sole trader, a partnership or a company. The tax consequences differ, depending on whether the
More informationPrince Edward Island announces transitional rules for harmonized sales tax
Prince Edward Island announces transitional rules for harmonized sales tax November 2012 Effective April 1, 2013, Prince Edward Island (PEI) is replacing its federal and provincial sales tax system with
More informationDEATH OF YOUR SPOUSE
DEATH OF YOUR SPOUSE A free publication provided by Consolidated Credit Counseling Services of Canada, Inc., a registered charitable credit counselling and debt management organization. Consolidated Credit
More information2012 Annual Financial Statements Questionnaire
Nair & Chen Chartered Accountants Limited 280 Great South Rd PO BOX 74-322 Greenlane Auckland 1051, New Zealand 2012 Annual Financial Statements Questionnaire Business Name: Financial Year ended: 2012
More informationTAX NEWSLETTER. February 2012
TAX NEWSLETTER February 2012 RECORDING YOUR BUSINESS AUTOMOBILE EXPENSES PRESCRIBED AUTOMOBILE AMOUNTS FOR 2012 EMPLOYEE LOANS CRA SIMPLIFIED RATES FOR MOVING EXPENSES INCURRED IN 2011 CRA PUTS END TO
More informationPersonal income tax organizer
2015 Personal income tax organizer Your Personal tax organizer includes a personal income tax checklist and tracking schedules. It is designed to make it easier to compile information for your tax preparer.
More informationPaying your way. Tax issues for the self employed
Paying your way Tax issues for the self employed May 2012 Tax issues for the self employed This is a brief overview of tax issues that affect the self employed. Understanding your tax responsibilities
More informationThe Professional s Option Professional Incorporation
The Professional s Option Professional Incorporation Many professionals now have the opportunity to run their business as a professional corporation 1. The ability to incorporate raises a number of planning
More informationCHAPTER 4 - TAX PREFERENCES FOR SUPERANNUATION AND LIFE INSURANCE SAVINGS
45 CHAPTER 4 - TAX PREFERENCES FOR SUPERANNUATION AND LIFE INSURANCE SAVINGS 4.1 Introduction In general, superannuation and life insurance have not been subject to the normal income tax treatment for
More informationBEING FINANCIALLY PREPARED FOR RETIREMENT The Scary Facts! $1.00 item in 1972, costs $3.78 today At the average rate of inflation, the price you pay for an item today will be double in 20 years almost
More informationSmart End of Financial Year Strategies
Level 7,34 Charles St Parramatta Parramatt NSW 2150 PO Box 103 Parramatta NSW 2124 Phone: 02 9687 1966 Fax: 02 9635 3564 Web: www.carnegie.com.au Build Guide Protect Manage Wealth Smart End of Financial
More informationA Corporate Insured Stock Redemption Disability Buy-Sell Plan
A Corporate Insured Stock Redemption Disability Buy-Sell Plan A business owner s disability can have some very real practical consequences leading to problems for the owner, the owner's family, and for
More informationSUMMARY REVIEW COLORADO COUNTY OFFICIALS AND EMPLOYEES RETIREMENT ASSOCIATION 457 DEFERRED COMPENSATION PLAN FOR THE
SUMMARY REVIEW FOR THE COLORADO COUNTY OFFICIALS AND EMPLOYEES RETIREMENT ASSOCIATION 457 DEFERRED COMPENSATION PLAN TABLE OF CONTENTS INTRODUCTION... i HIGHLIGHTS... 2 PARTICIPATION... 2 Eligibility to
More informationFREQUENTLY ASKED QUESTIONS BUSINESS CONTINUATION
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA BUSINESS STRATEGIES Key Person Life Insurance FREQUENTLY ASKED QUESTIONS BUSINESS CONTINUATION When should a business and its owners consider buying insurance
More informationSmart strategies for maximising retirement income
Smart strategies for maximising retirement income 2010 Why you need to create a life-long income Australia has one of the highest life expectancies in the world and the average retirement length has increased
More informationThe Quebec Voluntary Retirement Savings Plan (VRSP) An overview of the newly announced workplace retirement savings plan
The Quebec Voluntary Retirement Savings Plan (VRSP) An overview of the newly announced workplace retirement savings plan Use this summary of Quebec s recently-introduced Voluntary Retirement Savings Plan
More informationYou and your shares 2015
Instructions for shareholders You and your shares 2015 For 1 July 2014 30 June 2015 Covers: n individuals who invest in shares or convertible notes n taxation of dividends from investments n allowable
More informationStarting a new Business?
Starting a new Business? Here s how to get started. 1.) Business Plan a. Using words and numbers to identify what you want and what you need to get there. b. Summary of mission, mandate, market and methods.
More informationShareholder Dividend Reinvestment and Stock Purchase Plan
Shareholder Dividend Reinvestment and Stock Purchase Plan 2012 Offering circular 1 WHAT S INSIDE Introduction 3 Summary 4 Contact Information 4 Questions and Answers 5 Shareholder Dividend Reinvestment
More informationPARTNERSHIP/LLC TAX ORGANIZER FORM 1065 (LONG VERSION)
PARTNERSHIP/LLC TAX ORGANIZER FORM 1065 (LONG VERSION) Enclosed is an organizer that I (we) provide to our tax clients to assist in gathering the information necessary to prepare the current year tax returns.
More informationPersonal Service Companies. Guidance Note GN 50
Personal Service Companies Guidance Note GN 50 Issued by the Income Tax Division 20 March 2014 PLEASE NOTE: This guidance has no binding force and does not affect your right of appeal on points concerning
More informationAustChoice Super general reference guide (ACH.02)
AustChoice Super general reference guide (ACH.02) Issued: 28 May 2015 This guide contains important information not included in the AustChoice Super PDS. We recommend you read this entire guide. The information
More informationTHE TAX-FREE SAVINGS ACCOUNT
THE TAX-FREE SAVINGS ACCOUNT The 2008 federal budget introduced the Tax-Free Savings Account (TFSA) for individuals beginning in 2009. The TFSA allows you to set money aside without paying tax on the income
More informationRandall A. Lenz CORPORATION/S-CORPORATION TAX ORGANIZER (1120, 1120S) COMPREHENSIVE
Randall A. Lenz Attorney-at-Law Certified Public Accountant 199 14 th Street, NE Suite 1907 Atlanta, Georgia 30309-3688 (404) 815-1731, Cell (404) 323-1731, FAX (404) 815-0717 rlenz@atl.mindspring.com
More informationShareholder Protection An Advisor Guide
For Financial Advisors use only Shareholder Protection An Advisor Guide Life Advisory Services This document provides an outline of the taxation issues to be considered when you are putting together a
More informationOfficial Form B 22A2 Chapter 7 Means Test Calculation 12/14
Fill in this information to identify your case: Debtor 1 Debtor 2 (Spouse, if filing) United States Bankruptcy Court for the: District District of of (State) Case number (If known) Check the appropriate
More informationFinding sources of capital. Secured and unsecured borrowing Selling equity Government programs Frequently overlooked sources
Finding sources of capital BusineSS Coach series Secured and unsecured borrowing Selling equity Government programs Frequently overlooked sources Business Coach series The fundamentals of finance The situation
More information