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Is your business tax compliant? Questions you need to ask! Lisa Patrick

 

Do all your expense receipts for over $30.00 have a gst number?
Did you record on your meal receipt who you had the meal with and what you discussed?
Did your write down what you used your vehicle kilometers for today (what, who, where, why)?
Does your bookkeeping reports reflect the information in the right format in order to make important business decisions based on your taxable income?
 
Just a few of the short list…


Lost money on a business venture? Lisa Patrick

1.                  certificate of incorp
2.
                 share allotment schedule
3.
                 articles of incorp
4.
                 annual return from province
5.
                 provincial or legal document indicating dissolved or involuntary dissolved company
6.
                 shareholder /  loan ledger is adequate for initial claim…
you do not have to submit receipts but obtain copies of the initial receipts or disbursement that indicate the reason the money was advanced to the corp…
this would have to indicate the business purpose…
consider keeping control of the receipts & paperwork  for 7 years…
a CRA auditor would love you if you provided a binder indicating the bundle of receipts or the receipt matching the actual journal number for each fiscal period where an amount is owed.
7.
                 tax schedules of corporation
The form that is necessary to file it on your person taxes would be available from your tax professional when they claim it on your personal taxes..
Tax details…abil (allowable business investment loss)
50% of amount is deduction against all other income but it may be restricted by the amount you claimed for capital gains deduction and investment losses that exceed investment income in the past.
 
Tax savings of the claim depends on your Tax margin in Alberta:
$40,000 at 25%
$41,000 to $82,000 at 32%
$82,000 to $127,000 at 36%
over $127,000 is at 39%

Darlene Lafond, R.P.A., C.P.C.


Looking to sell a business or buy a business? Lisa Patrick

We have discussed with business buyers and business sellers various considerations ABOUT VALUING A BUSINESS.

Buying the shares of the business rather than breaking out the equipment can sometimes be a better net cash win for everyone.
 
If you desire assistance in getting the “things” together to make an informed decision, should YOU buy a business or what to sell YOUR business for:
Consider getting this information on the business together for your tax accountant.
 
1.        Previous years government filed returns (Federal, Provincial, GST, others)
Comparative Income & Expense Year to date
2.        Comparative Balance Sheet Year to date
3.        Payroll report for management year to date for calendar year.
4.        Payroll report for management year to date for fiscal year.
 
C2online provides a detailed checklist on the buying, closing or selling of a business – FREE!
 
Buy close transfer bus checklist  


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