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Can income be offset against equity?
Expert: Gary Booth
Darreb asked:
Can I offset my income against equity (cash and tools) that I personally put into my own company (Manitoba), to reduce my taxable income? My company is a partnership with my wife and not incorporated.
Gary Booth answered:
If a shareholder uses his own money to buy tools and pay for expenses than the cost of these can be used as an expense in company. The money put into the company will be classified as a shareholder's loan and can be repaid to shareholders tax free, when the company has sufficient money available.
About the author
Gary Booth has over 20 years experience in the tax and accounting field. He operates his chartered accounting practice called Gary Booth CA Professional Corp. The six members of Gary’s team provide a wide variety of accounting and tax expertise to meet the needs of Gary’s clients.
Gary Booth CA Professional Corp is committed to providing excellent customer service and to exceed client’s business expectations. The services the firm provides includes:
- All types of personal tax returns from basic to complex
- Corporation tax returns
- Financial statement preparation
- Audits and review engagements
- Bookkeeping, GST and PST returns and payroll
- Certified quickbooks trainer and set up
- Business plans and business consulting
Gary can reached at 416 626 2727 x23 and www.garybooth.com.