Fees Prior to Incorporation
We haven't incorporated yet but there are some fees we have to pay prior to incorporation from each partner's pockets. These are costs of incorporation. They include:
-Consultation with lawyers
-Cost of translation
-Travel costs
-Other costs.
Questions:
1) My understanding is that the above costs are proper business expenses but please confirm.
2) For tax purposes pre-incorporation costs are considered ECE (Eligible Capital Expenditures) and can't be fully written off. So this means 75% of the costs are on 7% declining balance. 25% of the costs are not tax deductible at all?
3) What happens to the GST/HST we pay on the above expenses? Let say translation fee is $100 + $13 HST = $113, because it is incurred before we have registered for GST/HST #, can we still claim the GST/HST as ITC?
Thanks
-Consultation with lawyers
-Cost of translation
-Travel costs
-Other costs.
Questions:
1) My understanding is that the above costs are proper business expenses but please confirm.
2) For tax purposes pre-incorporation costs are considered ECE (Eligible Capital Expenditures) and can't be fully written off. So this means 75% of the costs are on 7% declining balance. 25% of the costs are not tax deductible at all?
3) What happens to the GST/HST we pay on the above expenses? Let say translation fee is $100 + $13 HST = $113, because it is incurred before we have registered for GST/HST #, can we still claim the GST/HST as ITC?
Thanks