2017 Federal Budget Eliminates WIP Deduction for Professionals
As many of you may be aware, it is common practice for designated professionals (accountants, lawyers, doctors, dentists, etc.) to deduct their work in progress (“WIP”) in the calculation of taxable income. This implies that in general, all labour related costs with work not invoiced yet will be deducted for the purpose of taxable income. However, no associated revenue will be recognized, perhaps until the following year or so, when it is eventually invoiced.
Should you incorporate your small business?
This is a difficult decision that many small business owners face at the start of their business or when they experience early growth.“When is the right time to incorporate and what does this mean? And if not, how should I structure my business?”Well, first you need to know the different structures a business can take shape and the right structure will depend on many different factors that are specific to your situation.
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