Kelowna accountant, Ken Davidson, offers a few best practices when setting up new real estate investments.
Are you a real estate investor who wants to be sure that you set up your investments the right way? It is essential that your plan involves ensuring you are protected personally, your investments are protected, and you are taking advantage of all possible tax savings and advantages?
For many real estate investors that are purchasing apartments, commercial properties and multi-family homes I suggest a high level of protection from liability in a three tier system.
A three tier system… Continue reading
Once the real estate bug bites you, it’s tough not to start considering great prospects for new real estate investments. The common issue I see with most people is the trouble with knowing when you are overextending yourself and taking on too much risk. When you are using leverage, it’s often for the possibility of a high return on investment but you must be careful.
Understanding Your… Continue reading
The big buzz in BC right now is centered around the HST transitional rules for the tax’s elimination in the province after a short reign. Overwhelming public outcry led to a referendum resulting in favour of cutting the controversial tax and now the real confusion has begun for many businesses.
The HST is a combination of the 5% federal tax and a 7% provincial tax that will be replaced by its predecessors, GST & PST, on April 1, 2013. The changes released by the province will affect home builders and their customers and BDO Canada has addressed this in a… Continue reading
When the time comes that Revenue Canada wants to conduct an audit on your business, you want to make sure you have all your ducks in a row. It can be a daunting task for your business but it can run smooth, as long as you have kept a decent paper trail and understand what type of audit is being conducted on your business.
Revenue Canada can request additional information and audit you up to 3 years after any claim is filed and you have 30 days… Continue reading
Question from a Reader: As a business owner should I take a wage or dividends?
As far as I’m concerned, there are very few reasons why a business owner should take a wage. When I say this I’m referring specifically to business owners that have incorporated their business, because it’s a whole different situation if you’re a sole- proprietor.
All of my clients earn dividends rather than wages but the question is why? There are a couple reasons why this is works to your… Continue reading
In Kelowna, so many people travel from all across the country to live here because it’s such a desirable location to settle down. In turn, we attract many entrepreneurs and prospective entrepreneurs that are constantly thinking about what type of business they can purchase in the beautiful Okanagan Valley.
I had a question come into me from a reader last week asking about what I recommend in the due diligence process when purchasing a business. I wanted to address this in my blog since it… Continue reading
This is an interesting topic because the definition of a “green company” is different for everyone and I think if you’re interested in a green company, you need to define your own definition of green. I truly believe this is extremely important because a lot of people are advertising and pushing their green status but the reality is many may not truly be “Green” depending upon your definition of it.
At the end of the day, you still have to run your business like a business, aka-making money, so you have… Continue reading