Programs & Courses

T2 Tax Preparation for Professional Businesses

Tax Planning

By: Larry Frostiak

T2 Tax Preparation for Professional Businesses

PROGRAM: Business Services Specialist

WHY IS THIS COURSE ESPECIALLY TIMELY?

It is a time of great change in the incorporated professional services, from a demographic point of view, as more professionals plan their retirement/succession. In addition, Finance Canada has changed many rules around the taxation of incorporated small to medium sized businesses.  This course will highlight those rules and frame proper planning and compliance issues for busy professional tax and financial advisors charged with assisting these businesses.

CONTENT DESCRIPTION AND KEY BENEFITS:

The student will demonstrate the following competencies:

Chapter 1: You will gain an understanding of the tax rules pertinent for professional corporations, including access to the Small Business Deduction limit, and taxation of income   within a corporation

Chapter 2: You will gain comprehension of how the Income Tax Act rules apply to tax self-employed professionals versus incorporated professionals

Chapter 3:You will gain an understanding of the corporate structures utilized for small to medium-sized professional corporations, including various forms of share capital

Chapter 4:You will review and u detest and the various rules imposed by different provinces and their respective professional organizations in relation to the incorporation and ownership of the incorporated practice

Chapter 5:You will gain an understanding of how tax integration works between the corporation and its shareholders, including the ability to income-split, defer tax and reduce the overall tax burden

Chapter 6:You will learn the various ways to incorporate HR benefits for the practitioner and family into the corporate model, including group benefits, health spend accounts

Chapter 7:This chapter will review and provide you with insight into commonly utilized succession and retirement strategies for the owner manager

Chapter 8:Thus chapter will explore and discuss the various means by which the owner manager might sell their practice. You will gain an understanding of the alternatives and the related tax issues and ramifications

Chapter 9:This chapter will enable you to gain an understanding of the factors inherent in structuring sale, including financing considerations and the issues related to removing redundant assets with a view to utilizing the Lifetime Capital Gains Exemption

Chapter 10: A summary of the top ten strategies for succession planning will be reviewed so that the advisor will have an appreciation and understanding of the key issues in transitioning the business for an incorporated professional

EVALUATION COMPONENTS: 

Chapters end with multiple-choice and true-to-life scenarios found online, which test the practical application of the key concepts covered in the course, using professional software tools and calculators.  A review before the examination, called the Practice Management Thesis (PMT) prepares the student with a consolidated case study testing the practical application of course work.  A final exam is required for certification and examination.

MARKS ALLOCATION:

Quizzes 25%
Case Studies 50%
Final Exam 25%
Passing Grade 60%
Honours Achievement 90%

 

Recommended Reading - Additional Educational Resourcse: 

  • Knowledge Bureau Report – weekly e-newsletter for breaking tax and investment news.
  • Financial Literacy Books – Master Your Investment in the Family Business

CE Credits

CE Credits
Knowledge Bureau 30 CPE credits

Table of Contents

1:
How does tax compliance differ for micro vs small to medium sized businesses
2:
Optimal Structures: employee, commissioned, self-employed, incorporated
3:
Shareholder matters for small to medium sized businesses and overall corporate/shareholder tax planning and a review of corporate structures
4:
Variations: incorporation rules for various types of professionals
5:
Tax efficiencies: income splitting, income averaging, tax exemptions and deferrals
6:
HR and employee benefits: for the family and for non-arm’s length resources
7:
Top Ten Strategies in Retirement Planning: structuring income sources with tax efficiency
8:
Selling a block of business: shares vs. assets, evaluating access to Lifetime CGE
9:
Getting a business ready for sale: financing considerations & removing redundant assets
10:
Top Ten Strategies for Succession Planning