Frequently asked tax questions

Tax planning means structuring your affairs (how your business is held, how you pay yourself, where your assets sit) so that transactions attract the least tax the law allows, before they happen. It serves businesses and incorporated professionals as much as families preparing a transfer or an estate. KB Fiscalité reviews your situation and your objectives, then implements the structure chosen.

A discretionary family trust holds assets, most often shares of a private corporation, for the benefit of family members, while giving the trustees discretion over who receives income and capital. Properly structured, it supports income splitting, asset protection and estate planning. Trusts follow strict rules, including the 21-year deemed disposition rule, so they should be set up and monitored by a tax professional.

A corporate reorganization is worth considering before a sale of the business, when a new shareholder comes in, to purify the corporation so its shares qualify for the lifetime capital gains exemption, or to separate real estate from operations. Done at the right time, a reorganization generally proceeds by tax rollover, without immediate tax. The essential rule, reorganize before the transaction, never after.

Yes, a properly planned intergenerational business transfer can offer tax treatment comparable to a sale to a third party, particularly since Bill C-208 addressed transfers to the next generation. Where the shares are qualified small business corporation shares, the seller may be able to claim the lifetime capital gains exemption. The conditions are strict and the structure matters. KB Fiscalité guides families from the initial plan through to implementation.

The cost of incorporating depends on what your situation requires. The share structure, whether a family trust is involved, a shareholder agreement, or the specific rules that apply to incorporated professionals. A proper incorporation includes the articles, the legal organization of the corporation and the minute book, not just a filing with the registry. KB Fiscalité reviews your needs first, recommends the right structure, then quotes the mandate accordingly.

Incorporation usually becomes worthwhile when your practice earns more than you need to live on, because a corporation lets you defer tax on income left inside the company. Physicians, dentists, lawyers, notaries and other members of professional orders must also follow their order's specific incorporation rules. KB Fiscalité assesses whether incorporation makes sense in your situation and handles the entire setup.

A corporation must file its federal T2 return and its Quebec CO-17 return within six months of its fiscal year-end. Any balance of tax owing is due earlier, two or three months after year-end, depending on the corporation's situation. Filing late triggers penalties and interest, so these deadlines deserve as much attention as the return itself.

Personal income tax returns are due April 30. Self-employed individuals and their spouses have until June 15 to file, but any balance owing is still payable by April 30. KB Fiscalité also prepares returns for trusts and non-residents, two types of files that call for specialized expertise.

The federal GST is 5% and the Quebec QST is 9.975%, which together add just under 15% to most taxable sales in Quebec. Registered businesses collect these taxes and can generally recover the tax paid on their own purchases through input tax credits and refunds. Registration, collection and recovery rules carry many exceptions, the firm helps businesses get them right.

If Revenu Québec or the CRA announces an audit, speak with a tax professional before you hand over documents or sign anything. What you provide at the start of an audit shapes the entire file, including any eventual tax dispute. KB Fiscalité acts under audit mandates and represents clients before the tax authorities, up to and including challenging assessments when warranted.

When a person dies, they are deemed to have disposed of their property, which can trigger tax on accrued gains in their final return. A spousal rollover often defers that tax when property passes to the surviving spouse. The estate itself may also have to file its own returns while it holds property, and sound post-mortem planning can reduce the overall tax burden.

An estate liquidator, Quebec's term for an executor, is personally responsible for certain tax obligations, including filing the deceased's returns and obtaining clearance certificates before distributing property. KB Fiscalité prepares the deceased's and the estate's tax filings, designs the post-mortem plan, and assists heirs and the liquidator at every step. That support protects the liquidator and prevents unpleasant tax surprises.

Yes, KB Fiscalité serves businesses and individuals across Greater Montreal and throughout Quebec from its Vaudreuil-Dorion office. Most files are handled remotely through the firm's secure client portal, with meetings in person or by videoconference, whichever you prefer.

KB Fiscalité's office is located at 24 Saint-Jean-Baptiste Avenue, Vaudreuil-Dorion, Quebec, J7V 2N9, in Vaudreuil-Soulanges. You can reach the firm at (514) 394-0848 or info@kbtax.ca to book a meeting.