How would I go about prorating the assets? Is there a CRA document which covers this?Homerhomer wrote: ↑Jun 7th, 2013 8:24 amIn practice CRA will change your status from contractor to employee, very rarely if ever the other way round.
Regarding your equipment which belongs to the corporation indeed use for employment purposes would be deemed personal use, and you may need to prorate it, however in practice I am not sure in your case I would even worry about it and simply amortize it in the corporation, especially since it is exactly the same equipment, and the only difference in this case is the requirement of your client.
I have about 10k of assets currently in my corporation. They were originally set up as personal assets but were rolled over to my corporation when I originally formed the corporation. I normally purchase an additional 5k or so of assets a year (mainly computers, software, etc.) which is owned entirely by the corporation.
I wouldn't really have an actually salary. For this contract it would be mainly based on performance. So I guess you could say my salary (what I will earn as an employee), is highly dependent on how profitable I make the company. It could be very low but could be very high. It would be up to me.Busybuyer888 wrote: ↑Jun 7th, 2013 11:26 pmThe real question is what is the salary (fixed bi-weekly/monthly) vs. what OP normally earns as a contractor. This equipment depreciation amount should be pretty irrelevant, unless we are talking about a mainframe system. If OP feels strongly about it have the employer add $100 per month to salary to cover the equipment.