You are required to report rental income and file taxes.
Cheema & Associate Professional Corporation
Jan 5th, 2015 11:37 am
Jan 5th, 2015 11:40 am
Technically speaking you don't need to label the transaction as pay or dividends. However, as @SirLookout4Deals said, if it's 'pay' you will be required to remit the source deductions.
Jan 5th, 2015 11:43 am
jhong88 wrote: ↑Dec 28th, 2014 2:06 amI've set up a corporation in 2012 which had income up until 2014 which had $0.00 in income, however I do have some expenses that this corporation has incurred (new set up). I'm wondering, as I didn't have any income in 2014, I can't deduct these expenses, so would I be able to carry forward these expenses to 2015 when the new business launches?
Jan 5th, 2015 11:54 am
Yup. Makes sense, if it is pay, I'll have to set that money aside beforehand.
Jan 9th, 2015 11:17 am
Jan 9th, 2015 11:31 am
Jan 9th, 2015 4:48 pm
Jan 9th, 2015 9:01 pm
Jan 9th, 2015 9:55 pm
im not a fiscalist but heres a quick answerBananaHunter wrote: ↑Jan 9th, 2015 4:48 pmI am working with a friend to start a corporation. This corporation will be partly owned by a foreign corporation. So currently we plan to have 3 shareholders: A - Foreign corporation own 50%. B - My friend will own 25% C- I will own 25%. My friend and I are Canadian residents. When we cite these %, these are the ratios that we want to share profits and costs. We plan to make all major decisions jointly.
1) About CCPC: I want to make sure we are considered as a CCPC so we can take advatange of lower tax rates. Does the above structure make us a CCPC and what factors might change that?
2) Related to CCPC question above. We're thinking of issuing two classes of shares A & B. A class is strictly for dividend payment to share profit and B class is for voting rights. My question is if we change the ratios such that the foreign corporation will take 60% of class A shares, and 50% of class B shares, is the corporation still a CCPC? The 3 shareholders want to make decisions jointly (3 people must consent). Is it necessary to have 33% of class B shares each person? Any advice for or against this idea?
3) We will split the after tax profits by dividends. So dividends will be paid to a foreign corporation. We'll also pay a royalty perhaps weekly. I understand that there's a withholding tax on royalty and dividends to non-residents. But what if we buy equipment or some rights from the foreign corporation? Do these have withholding tax as well?
4) Any other tax issues regarding having a foreign corporation owning a part of our company? I consider myself pretty well versed in "Canadian" taxes for small businesses but having a foreign entity is new to me.
I understand my questions are probably more complicated. A generalized answer will be good. I'm not going to hold you accountable. We will likely get professional advice but right now at the planning stage we don't want to spend the $$$. And if you can give me generalized answers and advice now, I might retain your full professional services when we actually put things in motion. And of course I'll really appreciate it.
Jan 10th, 2015 6:01 pm
Jan 13th, 2015 6:23 pm
Jan 13th, 2015 9:52 pm
Jan 29th, 2015 12:01 pm
That's correct. Don't pay EI because she cant collect EI.
Jan 29th, 2015 12:04 pm
If you sold the shares of the corporation...you will get a capital gain or loss. The new owners will file the tax returns for the corporation.
Jan 29th, 2015 5:37 pm