Small Business Deduction
February 23, 2017
Published by Michael Blank at February 23, 2017
On December 15th, 2016, Royal Assent was given to C-29, a budget implementation bill. C-29 means big changes for companies using the Small Business Deduction. Previously, I discussed the Small Business Deduction, who uses it, and what C-29 changed. Here, I will briefly discuss the effects on small businesses. As always, consult a tax accountant to review your situation and for tax planning. It used to be the biggest issue was Association: if two companies had 25% or more ownership in common, they were Associated, and had to share the $500,000 Small Business Deduction. Now, Specified Corporate Income goes […]
February 20, 2017
Published by Michael Blank at February 20, 2017
As of December 2016, Bill C-29 is poised to make major changes to Small Business. In previous blogs, I discussed what the Small Business Deduction is, and what companies can use the Small Business Deduction. In this blog I’ll review the changes, and in the next blog I’ll discuss C-29’s impact. As always, talk to a tax accountant to review your particular situation and to get involved in tax planning. There is a new definition of Specified Corporate Income (new Section 125(7) of the Act). If two companies held by related owners do business with each other, that income won’t […]
January 2, 2017
Published by Michael Blank at January 2, 2017
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Canada’s Bill C-29 has been passed. There will be big effects for those who use the Small Business Deduction. In my last blog, the Small Business Deduction was defined: basically 17% lower tax rate for the first $500,000 of active business income. In this blog I will discuss what companies can use the Small Business Deduction. In future blogs I will discuss the changes Bill C-29 will make and the outcome for Small Businesses. The main users of the Small Business Deduction are Canadian-Controlled Private Corporations (CCPCs). Obviously, the name implies the corporations must be ‘controlled’ by Canadians. Majority […]
December 22, 2016
Published by Michael Blank at December 22, 2016
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The current Canadian government’s proposed C-29 will surprise a lot of small businesses. There will be big changes to what income is eligible for the Small Business Deduction. To be fair, some taxpayers were pushing the limits of the law. That being said, the government’s solution puts so much of a burden on small business that it threatens use of the Small Business Deduction. Over four blogs, I will explain what the Small Business Deduction is, who is eligible for the Deduction, describe the changes and why they are being made, and the outcome for small business. The Small Business […]