Comments on: 7 Ways To Get Money Out of Your Corporation http://blog.taxresource.ca/7-ways-to-get-money-out-of-your-corporation/ Canadian Tax Help & Financial Planning Resources Sun, 12 Feb 2012 02:53:18 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Tax Guyhttp://blog.taxresource.ca/7-ways-to-get-money-out-of-your-corporation/comment-page-2/#comment-9725 Tax Guy Sat, 19 Feb 2011 16:26:57 +0000 http://blog.taxresource.ca/?p=4413#comment-9725 Hello Linda, I don't understand your question or how it related to drawing funds from a corporation. Hello Linda,
I don’t understand your question or how it related to drawing funds from a corporation.

]]> By: Lindahttp://blog.taxresource.ca/7-ways-to-get-money-out-of-your-corporation/comment-page-2/#comment-9713 Linda Sat, 19 Feb 2011 02:08:45 +0000 http://blog.taxresource.ca/?p=4413#comment-9713 My warning sign says to claim a eligible dependant? Married couple with 3 dependents and both have income around $50000.00 each??? My warning sign says to claim a eligible dependant?
Married couple with 3 dependents and both have income around $50000.00 each???

]]> By: Tax Guyhttp://blog.taxresource.ca/7-ways-to-get-money-out-of-your-corporation/comment-page-2/#comment-9708 Tax Guy Fri, 18 Feb 2011 20:26:56 +0000 http://blog.taxresource.ca/?p=4413#comment-9708 You can claim a portion of your home for business expenses if it is either your principal place of business or you use the particular space in your home only for earning business income. See: http://www.cra-arc.gc.ca/tx/bsnss/tpcs/slprtnr/rprtng/t2125/ln9945-eng.htmlNote that if you claim capital cost allowance against your principal residence you may lose a portion of your principal residence exemption on the capital gain. You can claim a portion of your home for business expenses if it is either your principal place of business or you use the particular space in your home only for earning business income. See: http://www.cra-arc.gc.ca/tx/bsnss/tpcs/slprtnr/rprtng/t2125/ln9945-eng.html

Note that if you claim capital cost allowance against your principal residence you may lose a portion of your principal residence exemption on the capital gain.

]]> By: Lindahttp://blog.taxresource.ca/7-ways-to-get-money-out-of-your-corporation/comment-page-2/#comment-9706 Linda Fri, 18 Feb 2011 19:15:13 +0000 http://blog.taxresource.ca/?p=4413#comment-9706 I HAVE A BOOKEEPING BUSINESS THAT I RUN OUT OF MY HOME AND MY HUSBAND HAS A SMALL CONTRACTING BUSINESS THAT HE RUNS OUT OF THE SHOP NOW THAT HE HAS RETIRED FROM WORK.CAN WE BOTH TAKE A PORTION OF THE HOME EXPENSES?? I HAVE A BOOKEEPING BUSINESS THAT I RUN OUT OF MY HOME AND MY HUSBAND HAS A SMALL CONTRACTING BUSINESS THAT HE RUNS OUT OF THE SHOP NOW THAT HE HAS RETIRED FROM WORK.CAN WE BOTH TAKE A PORTION OF THE HOME EXPENSES??

]]> By: Tax Guyhttp://blog.taxresource.ca/7-ways-to-get-money-out-of-your-corporation/comment-page-2/#comment-9679 Tax Guy Thu, 17 Feb 2011 21:12:06 +0000 http://blog.taxresource.ca/?p=4413#comment-9679 Linda, I am not familiar with excise taxes. That is a different animal than income tax. Bui I can say, the GST rate for Canada is 5% not 7%. Linda,
I am not familiar with excise taxes. That is a different animal than income tax. Bui I can say, the GST rate for Canada is 5% not 7%.

]]> By: Evanhttp://blog.taxresource.ca/7-ways-to-get-money-out-of-your-corporation/comment-page-2/#comment-9672 Evan Thu, 17 Feb 2011 03:51:39 +0000 http://blog.taxresource.ca/?p=4413#comment-9672 Thanks Tax Guy- just wanted to make sure it was okay to invoice my corp from my sole proprietorship - will look into dividends further. Thanks Tax Guy- just wanted to make sure it was okay to invoice my corp from my sole proprietorship – will look into dividends further.

]]> By: Tax Guyhttp://blog.taxresource.ca/7-ways-to-get-money-out-of-your-corporation/comment-page-2/#comment-9663 Tax Guy Wed, 16 Feb 2011 21:28:23 +0000 http://blog.taxresource.ca/?p=4413#comment-9663 It doesn't really matter what you do: Pay yourself a salary, bonus, take a shareholder loan or invoice the company. It's all going to be taxed in your hands.You will be required to file a T2 corporate tax return and keep the books for the corporation anyway. You might want to run all of your business as a corporation and they yourself a dividend. The effective tax rate depending on your province can be quite low. It doesn’t really matter what you do: Pay yourself a salary, bonus, take a shareholder loan or invoice the company. It’s all going to be taxed in your hands.

You will be required to file a T2 corporate tax return and keep the books for the corporation anyway. You might want to run all of your business as a corporation and they yourself a dividend. The effective tax rate depending on your province can be quite low.

]]> By: Lindahttp://blog.taxresource.ca/7-ways-to-get-money-out-of-your-corporation/comment-page-2/#comment-9661 Linda Wed, 16 Feb 2011 14:14:09 +0000 http://blog.taxresource.ca/?p=4413#comment-9661 If I am billing someone from Alberta that does not have hst,do I just charge the Alberta/rateGST 7% for that province?? I am in BC If I am billing someone from Alberta that does not have hst,do I just charge the Alberta/rateGST 7% for that province?? I am in BC

]]> By: Evanhttp://blog.taxresource.ca/7-ways-to-get-money-out-of-your-corporation/comment-page-2/#comment-9653 Evan Tue, 15 Feb 2011 16:32:12 +0000 http://blog.taxresource.ca/?p=4413#comment-9653 I have been a sole proprietor for years and I had to incorporate in order to get a specific contract. I incorporated separately and I'm still billing some clients as a sole proprietor (as that's how the contracts were set up). I normally bill my clients and then pay tax/hst/cpp on that money. Now I have some money being paid to the corporation - I'm wondering how paying myself a salary is actually easier than essentially doing what I always do except now my sole proprietor company is billing a corporation I own directly rather than billing my clients directly as a sole proprietor? I certainly don't want to be setting up a payroll account etc. I have been a sole proprietor for years and I had to incorporate in order to get a specific contract. I incorporated separately and I’m still billing some clients as a sole proprietor (as that’s how the contracts were set up). I normally bill my clients and then pay tax/hst/cpp on that money. Now I have some money being paid to the corporation – I’m wondering how paying myself a salary is actually easier than essentially doing what I always do except now my sole proprietor company is billing a corporation I own directly rather than billing my clients directly as a sole proprietor? I certainly don’t want to be setting up a payroll account etc.

]]> By: Tax Guyhttp://blog.taxresource.ca/7-ways-to-get-money-out-of-your-corporation/comment-page-2/#comment-9607 Tax Guy Wed, 09 Feb 2011 21:11:31 +0000 http://blog.taxresource.ca/?p=4413#comment-9607 I would refer either to CRA document T4044 (Employment Expenses) or T4103 Employers guide to taxable benefits. I would refer either to CRA document T4044 (Employment Expenses) or T4103 Employers guide to taxable benefits.

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