All Entries in the "Tax & IRS" Category
The Canadian General Anti-Avoidance Rule
Rule: Canadians must tax plan now! It is absolutely essential that small business owners in Canada tax plan now. Why you may ask? Because Section 245 of the Income Tax Act could end up costing the owner literally millions because it allows the Canada Revenue Agency to cancel last minute tax planning. A small business [...]
IRS Disaster Assistance
A “disaster” is defined in one dictionary as “a calamitous event, especially one occurring suddenly and causing great loss of life, damage, or hardship, such as a flood, or an airplane crash.” The word “disaster” cannot convey the mental and physical anguish that results from such a “calamitous event.” During times of widespread disaster, people [...]
Plan Ahead
Do you trust the government enough… to do your estate planning? Lindsay Lohan in (and out of and back in) rehab, Charlie Sheen’s party life, the economy on the upswing, the economy on the downturn… In light of all of these stories, it’s easy to overlook the significant changes in the federal estate tax law [...]
Using The Canadian Family Trust For Real Tax Savings
Canadian family trusts have become part of Canadian folklore as this famous family has one and that famous family has one. We have all heard people say, “Everybody is using one and it’s paying for private school and university.” But, what is it? A Canadian family trust is an arrangement whereby an individual may allow [...]
Slouching Towards Federal Gomorrah But Looking For Private Paradise
As the shadowy fingers of a double-dip recession tighten their embrace on the United States, Washington is attempting to turn on the lights by trumpeting its usual litany of Keynesian remedies. You can hardly read your favorite newspaper without seeing some new governmental proposal. Akin to a Neanderthal discovering fire, Congress is clumsily thumbing through [...]
Navigating The Tax Policy Maze
As 2010 draws to a close, President Obama has proposed to extend and increase bonus depreciation through the end of the 2011 tax year, retroactive to September 8, 2010. This latest proposal is the most aggressive yet, allowing businesses of all sizes to write off 100 percent of their new investment in plants and equipment [...]
Who Wouldn’t Mind An Interest-Free Loan?
The importance of tax deferred retirement vehicles (and tax deferrals in general) and how they can positively effect your retirement and your business. One of the most important considerations in tax planning is not just the avoidance or elimination of your current income tax obligation, but also the calculated deferral of what would otherwise be [...]
International Finacial Reporting Standards
What they mean for your business. What is IFRS for SME? Th? July 2009 r?l??s? ?f Int?rn?ti?n?l Fin?nci?l R?p?rting St?nd?rds (IFRS) f?r Sm?ll- ?nd M?dium- Siz?d ?ntiti?s (SM?) is ? m?j?r ?v?nt in th? ?d?pti?n ?f int?rn?ti?n?l st?nd?rds by U.S. c?mp?ni?s. Sinc? th? American Institute of Certified Public Accountants’ (?ICP?’s) M?y 2008 r?c?gniti?n ?f th? [...]
The Gathering Storm
“I am not afraid of the storms for I am learning how to sail my ship.” – Louisa May Alcott Longtime residents of coastal areas know very well to prepare for a hurricane long before the first raindrops fall, the winds reach dangerous speeds and the storm surge approaches. They board up windows, prepare food [...]
What’s The Best Structure For My Company?
As you may know, there are different types of entities: the limited liability company (LLC), the corporation (subchapter S or C), the sole proprietorship and the partnership. What’s the best one? To put it simply, none of them. If there was one perfect entity, then every business would be structured identically. No single entity produces [...]
Maintaining Proper Minute Books & Corporate Records – A Canadian Perspective
The following article contains substantial contributions from Donna Kubota and Sandra Corrigan—they provide invaluable contribution in the practice of Ontario law. This article focuses on the need for owners of small- and medium-sized companies to ensure their minute books are up-to-date. Though the author specializes in Ontario law, the principles of proper recordkeeping apply throughout [...]
Under Siege: Asset Protection In Tough Times
You cut costs and became leaner to face your competitors head-on in today’s challenging environment, but is that really all you can do? Congratulations! You are a business owner—the king of your castle, master of your universe—and you have dominion over all you survey. Your guts, dedication and success, unfortunately, make you a prime target [...]
Tax Effects Of Health Care Reform On Individuals & Businesses
Given that one of the most drastic reforms to our nation’s health care system is likely to take place sometime during the coming year, it is important for individual and corporate taxpayers to have a firm understanding of the potential effects that reform will have on them. While the bills currently in the House of [...]
Tax Planning In A Recession
Given the current and past economic crisis, many businesses are in serious danger as revenues are falling and profits disappearing. While even leading economists disagree sharply as to the expected length of the current recession, they all certainly agree that the recession will end. The real question for many small businesses is whether they can [...]
Ensuring the Validity Of Shareholder Loans
It has become common for shareholders of closely held businesses to infuse and extract cash from their companies on a regular basis. These advances and withdrawals are often categorized as shareholder loans, but the documents supporting these loan categorizations are not often seen. Why should this concern you? Well, even if you call a transaction [...]