Trusted Tax Consulting in Calgary

Q: Is it beneficial to have a holding company?

Establishing a holding company can offer several benefits, especially for business owners and investors in Alberta. A holding company is a corporation that owns shares or assets of other companies. Here are some advantages: Tax Optimization: Holding companies can facilitate tax deferral and income splitting strategies, potentially reducing overall tax liability. Asset Protection: Separating operational assets from investment assets can protect your investments from business liabilities. Estate Planning: Simplifies the transfer of assets to beneficiaries and can minimize estate taxes. Dividend Flow-Through: Allows for dividends to flow from the operating company to the holding company, possibly reducing immediate personal tax consequences. However, the benefits depend on your specific financial situation and goals. It’s important to consult with a tax professional to determine if a holding company is advantageous for you.

Q: Do you recommend to purchase real estate inside a holding company or under personal name?

Deciding whether to purchase real estate through a holding company or under your personal name depends on several factors: Tax Implications: Owning property through a corporation can offer tax deferral benefits but may result in higher corporate tax rates on passive income. Liability Protection: A holding company can provide a layer of protection against personal liability. Financing Considerations: Mortgages may have different terms and rates for corporations versus individuals. Estate Planning: Corporate ownership can simplify the transfer of property to heirs. While corporate ownership can offer advantages like asset protection and potential tax benefits, it also comes with additional administrative costs and complexities. We recommend evaluating your long-term investment goals and consulting with our tax experts to make an informed decision tailored to your circumstances.

Q: Is there a way to transfer my personal rental property to a holding company without triggering tax?

Transferring a personal rental property to a holding company typically triggers capital gains tax and potential land transfer taxes because it’s considered a disposition at fair market value. However, a Section 85 rollover under the Income Tax Act allows for the tax-deferred transfer of property to a corporation in exchange for shares, provided specific conditions are met: Proper Valuation: The property must be accurately valued to establish the transfer price. Filing Requirements: A joint election between you and the corporation must be filed with the Canada Revenue Agency (CRA). Consideration Received: You’ll receive shares in the corporation equivalent to the property’s value. This process is complex and requires meticulous planning to comply with CRA regulations. We strongly advise seeking professional assistance to navigate the legal and tax implications effectively.

Q: How to transfer the loss in one of my companies to another company?

Directly transferring a loss from one company to another is not permitted under Canadian tax law when the companies are separate legal entities. However, there are strategies that might allow you to utilize the losses: Amalgamation: Merging the two companies into a single entity may allow the combined company to apply the losses against future profits. Wind-Up: Winding up a subsidiary into its parent company can sometimes enable loss utilization. Intercompany Transactions: Structuring transactions between companies at fair market value might help, but must be carefully managed to avoid triggering adverse tax consequences. Each method comes with its own legal and tax considerations. It’s essential to consult with a tax professional to evaluate your options and ensure compliance with the Income Tax Act.

Q: Do you provide retirement planning?

Yes , we offer comprehensive retirement planning services tailored to your individual needs. Our goal is to help you achieve financial security and peace of mind for your retirement years. Our services include: Financial Assessment: Evaluating your current financial situation, including assets, liabilities, income, and expenses. Goal Setting: Determining your retirement objectives and lifestyle expectations. Investment Strategies: Advising on investment options such as RRSPs, TFSAs, pensions, and other retirement vehicles. Tax Planning: Implementing strategies to minimize taxes on retirement income. Ongoing Support: Regularly reviewing and adjusting your plan to adapt to life changes and market conditions. We take a personalized approach to ensure your retirement plan aligns with your goals and provides a sustainable income throughout your retirement.

With Our Tax Planning Strategy We'll Help You Unlock More Savings & Retire Confidently

Tax planning should be unique for every individual, including yours. We’ll develop a customized tax strategy specifically for you, to help you meet your tax goals, and address your tax requirements.

Why companies and individuals look for tax consulting

Tax Planning and Consulting services are a necessary component for every individual and business and should be considered as part of your wealth planning strategy.

Meeting Tax Compliance: To minimize tax without worrying about the CRA.
Developing A Strategy: Without a clear tax strategy, it becomes difficult to save the most from the CRA.
Peace of Mind: Knowing experts manage your taxes provides confidence and reduces stress.

How our team can develop you a tax planning strategy

Tax Planning and Consulting services are a necessary component for every individual and business and should be considered as part of your wealth planning strategy.

Comprehensive Financial Assessment: We review your overall financial position to identify tax implications
Stay updated with Tax Changes: We keep abreast of current tax laws to ensure compliance and adjust strategies based on upcoming tax revisions that may affect you
Year-Round Support: We continuously review your financials status to adjust strategies as needed and offer timely advice to capitalize on tax-saving opportunities.

What our tax consulting clients had to say

We have been using Ada and her firm for our personal taxes over the last 5 years.

We have had some complex situations over these years, including inter-provincial moves, investment properties, home office/ vehicle situations, tax deferral strategies etc.

And we could not be more happier with both the service and results. Ada herself is knowledgeable, responsive and reliable.

What I especially appreciate about Ada is her proactive approach to tax planning, where she always shares strategies to maximize and optimize tax savings.

We refer our friends to Ada because we trust that she will do a very solid job!

– Nikki and Hasan | View Google Review

My family and I moved to Calgary about 4 years ago because of my work. At this point, I was just transitioning from having worked as an employee to having my own corporation. I did not know any accountant in the city.

I found Ada on the Internet. She was able to give me a very good introductory rate for doing the accounting for my start-up corporation. She was thorough, business-like, well informed and very professional. She took the time to patiently answer all my questions and helped us with our tax planning.

In the end, we also used Ada’s services for our personal taxes.

I would whole-heartedly recommend Ada to anyone in Calgary who needs friendly, reliable accounting and bookkeeping services for their personal or business taxes.

– Bartek Muszynski | View Google Review

With Our Tax Consultation We'll Help You Unlock More Savings

You don't have to run your business alone, especially when it comes to your accounting & finances. Connect with us today and lets see how we can help you.

Who we are

Hi, my name is Ada Zhang, and I’m the Founder of Streamline Accounting.

The idea behind tax planning and consulting is to allow you to take a proactive rather than reactive approach to determining your tax liabilities, and prepare for retirement.

No company or individual wants to pay more taxes than is necessary, and our specialized tax team can help you to plan ahead.

Tax consulting services are a necessary component for every individual and business.

Taxes in their various forms can be exceedingly complex, detailed and continuously changing.

A trusted tax advisor can navigate the tax landscape for you, developing tax strategies and solutions that work for you and your business.

This is where we can help you.

Frequently Asked Questions

Is it beneficial to have a holding company?

Establishing a holding company can offer several benefits, especially for business owners and investors in Alberta. A holding company is a corporation that owns shares or assets of other companies. Here are some advantages:

Tax Optimization: Holding companies can facilitate tax deferral and income splitting strategies, potentially reducing overall tax liability.
Asset Protection: Separating operational assets from investment assets can protect your investments from business liabilities.
Estate Planning: Simplifies the transfer of assets to beneficiaries and can minimize estate taxes.
Dividend Flow-Through: Allows for dividends to flow from the operating company to the holding company, possibly reducing immediate personal tax consequences.

However, the benefits depend on your specific financial situation and goals. It’s important to consult with a tax professional to determine if a holding company is advantageous for you.

Do you recommend to purchase real estate inside a holding company or under personal name?

Deciding whether to purchase real estate through a holding company or under your personal name depends on several factors:

Tax Implications: Owning property through a corporation can offer tax deferral benefits but may result in higher corporate tax rates on passive income.
Liability Protection: A holding company can provide a layer of protection against personal liability.
Financing Considerations: Mortgages may have different terms and rates for corporations versus individuals.
Estate Planning: Corporate ownership can simplify the transfer of property to heirs.

While corporate ownership can offer advantages like asset protection and potential tax benefits, it also comes with additional administrative costs and complexities. We recommend evaluating your long-term investment goals and consulting with our tax experts to make an informed decision tailored to your circumstances.

Is there a way to transfer my personal rental property to a holding company without triggering tax?

Transferring a personal rental property to a holding company typically triggers capital gains tax and potential land transfer taxes because it’s considered a disposition at fair market value. However, a Section 85 rollover under the Income Tax Act allows for the tax-deferred transfer of property to a corporation in exchange for shares, provided specific conditions are met:

Proper Valuation: The property must be accurately valued to establish the transfer price.
Filing Requirements: A joint election between you and the corporation must be filed with the Canada Revenue Agency (CRA).
Consideration Received: You’ll receive shares in the corporation equivalent to the property’s value.

This process is complex and requires meticulous planning to comply with CRA regulations. We strongly advise seeking professional assistance to navigate the legal and tax implications effectively.

How to transfer the loss in one of my companies to another company?

Directly transferring a loss from one company to another is not permitted under Canadian tax law when the companies are separate legal entities. However, there are strategies that might allow you to utilize the losses:

Amalgamation: Merging the two companies into a single entity may allow the combined company to apply the losses against future profits.
Wind-Up: Winding up a subsidiary into its parent company can sometimes enable loss utilization.
Intercompany Transactions: Structuring transactions between companies at fair market value might help, but must be carefully managed to avoid triggering adverse tax consequences.

Each method comes with its own legal and tax considerations. It’s essential to consult with a tax professional to evaluate your options and ensure compliance with the Income Tax Act.

Do you provide retirement planning?

Yes, we offer comprehensive retirement planning services tailored to your individual needs. Our goal is to help you achieve financial security and peace of mind for your retirement years. Our services include:

Financial Assessment: Evaluating your current financial situation, including assets, liabilities, income, and expenses.
Goal Setting: Determining your retirement objectives and lifestyle expectations.
Investment Strategies: Advising on investment options such as RRSPs, TFSAs, pensions, and other retirement vehicles.
Tax Planning: Implementing strategies to minimize taxes on retirement income.
Ongoing Support: Regularly reviewing and adjusting your plan to adapt to life changes and market conditions.

We take a personalized approach to ensure your retirement plan aligns with your goals and provides a sustainable income throughout your retirement.

With Our Tax Consultation We'll Help You Unlock More Savings

You don't have to run your business alone, especially when it comes to your accounting & finances. Connect with us today and lets see how we can help you.