I am super proud of my little cousin Christopher, here I am wearing his Timmy’s visor. He’s not really little anymore as he just turned 17 but he did get a summer job at Tim Hortons. He’s still in training but the plan is he’ll keep working when he’s back to school to save up money for a car. Christopher is crazy passionate about all vehicles: tanks, planes, trains, cars, bikes. I seriously ask for his advice when buying cars but I have to temper his preferences as he seems to think I operate without a budget. I don’t need a BMW M3 or M5, I don’t care about the extra 2-300 horsepower, I care about my monthly payments and how much of my lease is tax deductible
I’m proud because he’ll learn hard work, team work, and eventually, how much it sucks to work for minimum wage in the service industry to motivate him to something bigger and better. I want the same for my kids as their lives are sheltered and privileged, nothing like our parents and grandparents and great grandparents. Both my wife and I come from extremely hard working, impoverished families. My wife’s family are farmers who work directly on the land. My grandfather was a labourer and his brother worked on the Canadian railway. All back breaking work. My back gets sore if I sit or stand for too long
But I know for a fact we investors work hard to build our real estate business and like I want my kids to learn hard work, I’d like government employees and those who think raising taxes and costs (hydro, minimum wage) on small business should start their own small business. Based on our governments own statistics, failure is high, “In 2013, the total number of SME births was 78,430, compared with 83,240 deaths, which resulted in a net decrease of 4,810 businesses.” source: https://www.ic.gc.ca/
For anyone with a small to medium sized business including real estate investors who invest using corporations, you’re probably as disappointed as I am in Minister Morneau’s proposed changes to the tax benefits we small business work so hard to earn. Here’s a great one line summary of the proposal: “income taxes are highly unfavourable to business owners and investors who, unlike consumers, pay tax twice: once when they earn their income and a second time after they invest it and pay taxes on the returns.” “These measures, contrary to much of the news coverage, aren’t just targeted at the “rich” but will also hit middle-class business owners, are expected to increase federal taxes by $250 million, and provincial revenues by roughly another half of that. This is just one more way to discourage entrepreneurship, on top of all the tax increases in the past two years. If the Republicans’ plan for tax reform happens in the U.S., even more young entrepreneurs will be looking to head south instead of here.“
With these proposed new taxes going on, I caught up with real estate Accountant Cherry Chan, chartered professional Accountant. She’s also a mom, a small business owner with employees and a real estate investor with several properties so she’s no different than you and I accept she knows a bit about tax and accounting.
In this episode, Cherry will talk about how these changes are bad for your business and what you can do about it.
Without further ado, I present to you, real estate Accountant Cherry Chan.
For a more detailed summary on how what a real estate Accountant thinks of these changes, click here: https://realestatetaxtips.ca/
For a FREE copy of Cherry’s book: COMPLETE TAXATION GUIDE TO CANADIAN REAL ESTATE INVESTING: HOW TO MAXIMIZE YOUR REAL ESTATE PORTFOLIO AND MINIMIZE TAX, click here: https://
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