For those of you who have spent any time within the walls of Pinnacle, you have probably heard us drop the “value” word. Often this is in the context of our billing practices as we apply a value-based model, rather than the tired billable hour. And other times, we are in front of a whiteboard…
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We often get asked by our clients whether they can gift property to their children – and if so, whether there are any tax considerations. The answer is not always what people expect to hear. Transactions at Fair Market Value If capital property (for example real estate or investments) is given as a gift,…
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Introduction: In the small owner-managed business environment, the question of compensation is a recurring theme that often leaves entrepreneurs pondering the best compensation strategy. Clients frequently approach us with questions like, “How should I pay myself?” or “How should I compensate my employees?” While a conventional response might consider the tax aspects of dividends versus…
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In recent months, the Federal and British Columbia governments have introduced legislative measures to discourage short-term rentals as part of broader attempts to free up units for long-term housing. Some of these measures may impact short-term rental unit owners from multiple perspectives. Potential impacts include income tax, GST, filing requirements, and other administrative compliance. Federal…
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Self-employment offers a sense of freedom and autonomy unmatched by the standard employee-employer relationship. But this can come with the sacrifice of financial stability, especially at the start-up phase. Ineligibility for Employment Insurance (EI) coverage is one of those trade offs. Certain shareholders and proprietors fall outside the scope of insured individuals in the Federal…
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When an individual runs a business in a corporation, they have the choice whether to pay themselves through wages or dividends. There are several considerations that factor into this decision, one of them being contributions to the Canada Pension Plan, or CPP. What’s the difference? When a shareholder is remunerated by wages, the process is…
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The COVID-19 pandemic thrust many employers into uncharted territory – requiring rapid adoption of remote working technology and development of guidelines to maintain productivity while still preserving some sort of positive work culture amongst employees. Many businesses were quite successful in this transition and their employees may now have the ability to perform 100% of…
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Whether you and your partner file as common-law is more a matter of fact than it is a choice. The CRA considers an unmarried couple who have been living together in a conjugal relationship for 12 continuous months as common-law. There are several benefits to filing as common-law that can help reduce your combined tax…
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Business succession planning is a critical process for business owners in Canada. The process involves planning for the transfer of ownership and leadership of a business to another person or group of people, either within or outside the family. According to a study conducted by the Business Development Bank of Canada, 60% of small and…
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We are often asked by our clients how they should treat the carrying costs of vacant or undeveloped land for tax purposes. We are hopeful this blog will assist people to understand the appropriate treatment. Background Owners of vacant land incur carrying costs associated with ownership. Examples of such costs include property taxes, general maintenance…
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