If you are a doctor, dentist, or other professional and are considering purchasing a practice, you are likely contemplating a purchase of shares. And you should read this blog. There are a number of ways to structure a purchase of shares, but in this blog I will discuss three options:  Purchase the shares of the…

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There is a new accounting designation in Canada – Chartered Professional Accountant (CPA). Historically, there were three national accounting bodies in Canada – CA, CGA, and CMA. Over the years, having three separate accounting designations in Canada has created some confusion among Canadians as well in the international community. For this and other reasons, the three bodies…

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Thinking about your CPP? Mainstream media outlets have run many stories in recent years telling of the large number of Canadians that will reach retirement age in the near future. Many of our clients fit into this category and we are often asked when they should start taking CPP.  A quick recap of the issue…

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I have a Bookkeeper! Do I really need an Accountant? Two of the most frequent questions we are asked are: Explain the difference between a bookkeeper and an accountant. If I have one do I need the other? (The answer is usually yes.) They are great questions. Because we work so closely together, the boundaries…

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We are often asked by clients whether they should lease or purchase their vehicles (either outright or using a loan). We have tried to distill the decision down to a few rules of thumb. In general, leasing is more expensive than buying because the leasing company accepts a portion of the depreciation risk. The advantages…

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We all spend time as kids imagining how our lives might be when we grow up.  And then we grow up and we find ourselves imagining what might happen if… In business, those daydreams can often turn into guessing games, red herrings and assumptive goose chases.   But with some imagination and calculation, business owners can…

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Being close to the border, we get lots of calls from Americans who plan to do business in Canada.  Here are some of the basic issues you need to understand. Canada – US Tax Treaty A tax treaty exists between our two countries to address tax issues.  The treaty defines, among other things, the jurisdiction…

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Automobile expense rules can be really complicated, especially for company owned vehicles because of the limitations on depreciation, lease and interest expenses and the need to think about taxable benefits that might accrue to the driver of the vehicle. Automobile expenses tend to require lots of administration and present significant tax risk because CRA views…

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Are you considering renting out a portion of your home? There may be some tax implications to consider – both for now and in the future. Principal residence exemption Often, when you sell your “principal residence” there is no resulting tax implication. This is because of the principal residence exemption, which allows an adjustment to the…

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Most small business owners eventually face the question of whether or not to incorporate their business by creating a limited liability company or “corporation”. Owners of small business corporations enjoy preferential tax treatment in Canada in the form of lower corporate tax rates, tax-free status on sale of small business shares and access to certain…

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