My tax liability last year was too high.
I just spoke with a local CC'er and he had the same issue last year and told me that, rather than paying out tax, he bought another TM. I am pretty sure he is a sole proprietor.
My questions
1. How does this work for new equipment?
Say his tax liability was 22k but he bought a TM for 22k before his year end. I am pretty sure he cannot offset the whole TM cost but what proportion can he offset? Is it a deduction or is he just able to amortise or...
Canadian corp pre tax profit and taxation question
I just spoke with a local CC'er and he had the same issue last year and told me that, rather than paying out tax, he bought another TM. I am pretty sure he is a sole proprietor.
My questions
1. How does this work for new equipment?
Say his tax liability was 22k but he bought a TM for 22k before his year end. I am pretty sure he cannot offset the whole TM cost but what proportion can he offset? Is it a deduction or is he just able to amortise or...
Canadian corp pre tax profit and taxation question