Business professionals, business owners, and corporate executives understand the importance of future planning, goal setting and implementation. In most cases however, the daily rigors of their job require their most of not all of their attention and there is often little time left for managing their own personal financial affairs.
At some point, every business faces its own set of unique financial obstacles and challenges, so does every business owner. With the help of our wealth planning team at Oaktree & Associates, we ensure that you will be receiving the best and most up to date financial advice for your specific scenario.
Tax Reduction - Top 5 Strategies
1. Pay your family wisely. Starting in 2018, this process has become more complex due to the expansion of the tax on split income (TOSI) rules.
2. Understand new restriction on SBD. Certain restrictions apply to limit access to the SBD, and recent changes to the tax rules have significantly expanded these restrictions. For taxation years that begin after 2018, your business will face a new restriction to using the SBD.
3. Purchase capital assets before year end-If you’re planning on purchasing capital assets for use in your business in the near future, you should consider doing so before the end of your fiscal year.
4. Consider delaying the sale of assets with accrued gains until after year end -If you plan to sell capital assets with accrued gains, you should consider delaying the sale until 2019 (or the start of your business’ next fiscal year).
5. Plan (and tax-plan) your events or party. You may be thinking about hosting social events for your employees. You may be pleasantly surprised to find out that the general 50% limitation on the deductibility of business meals and entertainment expenses does not apply to employee social events that your business provides.