What is Income Splitting?
Income splitting is the practice of directing corporate income to family members in lower tax brackets to reduce the household’s overall tax […]
What is HST/GST and how do Input Tax Credits work?
HST and GST are consumption taxes collected by businesses on behalf of the CRA; input tax credits allow recovery of the HST/GST […]
What are Home Office Expenses?
Home office expenses are the portion of household costs, rent, utilities, internet, and maintenance, that an incorporated business owner can deduct when […]
What is the difference between a HoldCo and an OpCo?
An OpCo is the operating company that runs a business; a HoldCo is a separate corporation that sits above it, holding shares […]
What is Goodwill?
Goodwill is the value of a business above its identifiable assets, reflecting customer relationships, reputation, brand, and earning power that cannot be […]
What is a Fiscal Year?
A fiscal year is the 12-month accounting period a corporation uses for financial reporting and tax purposes, and it does not have […]
What is a Family Trust?
A family trust is a discretionary trust that holds assets, often shares of a private corporation, on behalf of family members, enabling […]
What is Estate Planning?
Estate planning is the process of structuring personal and corporate affairs so that wealth transfers to the right people, in the right […]
What is an Estate Freeze?
An estate freeze locks in the current value of an owner’s assets and transfers future growth to the next generation or a […]
What is the difference between Eligible and Non-Eligible Dividends?
Eligible dividends are paid from income taxed at the general corporate rate and receive a higher gross-up and personal tax credit; non-eligible […]
What is a Dividend Refund?
A dividend refund returns a portion of the tax a private corporation paid on investment income when it pays taxable dividends to […]
What is Depreciable Property?
Depreciable property is a business asset whose cost is written off over time through Capital Cost Allowance, because its useful life extends […]