Changes coming to small business in 2018
A large number of Chambers and various associations submitted to the Finance Minister their concerns about the upcoming changes. The Alberta and Canadian Chambers of Commerce have been extremely vocal about their opposition to these changes.
Since that time, our President Steven Muth has spoken about some of these topics during his media interviews. Some of these include income sprinkling, capital gains exemptions, and intergenerational transfer of a business.
We encouraged you to contact your accountants to be sure how these changes will effect your personal situation.
Effective January 1 2018, there is a reduction in the Small Business Deduction Tax Rate. The rate will drop to 10.5% and 9% January 1 2019. Although this appears on the surface to be good there is also a change to the Non-Eligible Tax Rate that will offset some of this, so again, consult your professionals.
There will be more bookkeeping and record keeping needed going forward. There is a lot of moving parts and uncertainty that is causing planning problems for everyone. As everyone’s circumstance is different members are again encouraged to seek out professional advice as it pertains to their situation.
Our local accountants can all be found through our membership data base on our website, consult them they are here to help.