This is topic Taxes ! in forum Old Archives at The Letterville BullBoard.


To visit this topic, use this URL:
http://www.letterville.com/ubb/ultimatebb.php/topic/13/13213.html
Posted by TransLab (Member # 470) on :
 
Crunch time .... Deadline for filing taxes in Canada, wrote the cheque today but to my surprise the bite was less than expected. As explained by my CA, because we're in manufacturing; any new equipment qualifies for investment tax credit of about 10% of the purchase price. The new equipment I bought last year helped lower my tax bill.

Crunch these numbers

Company buys a $10,000. piece of equipment

10,000 cost
1,500 15% Hst (combined sales tax)

11,500 cheque written

-1,500 HST rebate
-1,800 corporate tax savings on expense (over 4 years)
-1,000 investment tax credit

= 7,200 net cost to company


individual buys 10,000 piece of equipment

10,000 cost
1,500 HST

11,500 Cheque written

However an individual would have to earn over 18,000 to clear the 11,500 (marginal tax rate 38%)

Just think about how much more buying power a business has over an individual. A business with earnings of 100,000 has more than twice the buying power of an individual with the same earnings.. Just something to think about when you're deciding whether to put that new vehicle in your name or the company name.. of course its used for deliveries.


... Don't know what brought that on ... must be trying to justify to myself a big new toy.... [Wink]

[ April 29, 2003, 05:33 PM: Message edited by: TransLab ]
 
Posted by dveenema (Member # 833) on :
 
But remember Mike, according to King Jean, Canadians like to pay taxes!
 
Posted by Dave Grundy (Member # 103) on :
 
You guys are depressing me!!! LOL [Wink] [Wink]
 
Posted by E. Balch (Member # 3545) on :
 
If Canadians like to pay taxes.. then NY might as well join Canada .... I think we will soon be up to your standards.

The local property taxes are going up 36%, NY is going to raise sales tax and some of the counties are raising sales tax. We are looking forward to a 10% sales tax and all the fees are going up as well. And by the way.... don't smoke in any buildings either.

Oh well It gives us something to complain about [Wink]

ernie
 
Posted by Bruce Evans (Member # 44) on :
 
I've never quite bought into the theory of spending more money in order to pay a little less on taxes. Just seems like an excuse to spend money to me.

Now if you just so happen to be in the market for a new machine, then it could be looked at as a way of getting a nice discount on the purchase.
 
Posted by TransLab (Member # 470) on :
 
I'm dragging my heels on whether to buy a fast thermal printer. It's 43K us or nearly 65K can. It just sounds better (ie. easier to justify) if I think of it in terms of net cost to shop of 47K can..
 
Posted by TransLab (Member # 470) on :
 
... Ooops double post??

[ April 30, 2003, 06:50 AM: Message edited by: TransLab ]
 


Powered by Infopop Corporation
UBB.classic™ 6.7.2