How Taxes on Businesses Work...

[Angry White Male]

Then you smash ya rig drunk



Yeph the wreck gets sold you own it



Yeph youse get ya unit condo sold you own it



Yeph you go on compo and get no payments as you never drew a wage from the company



In the meanwhile you personally are claiming a deduction for depreciation...doesn't come off the company accounts.



Youse is a chump and a fucken novice . You are my mate mate but youse aint a businessmans arsehole material in the same way Berry is wif material !!.

Not much of this makes sense, but the business is run as a limited entity.  The company owns the equipment.



However, I made a personal loan to the company, which in turn allows my company to pay back that loan to me, tax free.



It's really not a difficult concept to understand.  This is how business works in Canada, when you personally loan money to a corporate entity...  You get that back first, before taxes are applied.



I am not familiar with US or Australian corporate tax laws, so if you do business there, different rules may apply.

[Angry White Male]

But, that would be on past years not the current year.

Taxes are always on the previous year.



Not that it matters, as losses can be carried forward to the next tax year also.

[Angry White Male]

I knew depreciation is tax deductible, but a loan to buy equipment he owns?



That doesn't sound right at all.

The company owns the equipment.



I just happened to lend my company the funds to purchase it.



Why doesn't it sound right?



What incentive would I have to spend my own money on equipment, if I'm taxed before I even recouped the loss?

[Angry White Male]

The income is taxable and the interest is deductable.

The income is NOT taxable.



And since I cannot charge my company interest on my loan (that I'm aware of, unless there is some loophole), interest on my personal loan is NOT deductible, since it cannot be applied in the first place.



Remember, Gordy...  We are doing business in two different places.  What applies there, may not here, and vice versa.

[Angry White Male]

Fucking people.  I try to explain a simple tax fact, and there's a full thread of people that don't do business in this country trying to attempt advice.

[Anonymous]

But, that would be on past years not the current year.

Taxes are always on the previous year.



Not that it matters, as losses can be carried forward to the next tax year also.

I think she's saying your audit was on what you did in the past. The loan you took out for a truck this year is not part of it.

[GORDY GAMBINO]

Ace believe me do not rely on me.



Yes Mr. Taxman urm....yes let me quote you the Gordy Gambino, some inet fucken know it all from Australia on what he says about his tax law that ipso facto now applies in Canada providing he got it right in the first instance per se........Ace copy pasta this and fucken hard copy your defence. Your fucken welcome.  ........fucken yeah mate that's free info for ya !!!!!

[Anonymous]

Fucking people.  I try to explain a simple tax fact, and there's a full thread of people that don't do business in this country trying to attempt advice.

Imagine that. If there was a thread about rail safety there would be experts here who think a derail is an attempt to wreck a discussion topic.

[Angry White Male]

I think she's saying your audit was on what you did in the past. The loan you took out for a truck this year is not part of it.

The loan I gave to my company was last year, as was the tax year, as was what this years audit was for.



Either way, I just thought I'd try to explain a simple thing to posters here, that may wonder why some companies earn profits (on paper), but pay no tax.

[Angry White Male]

Contrary to Gordy thinking he's a businessman (and I can't speak for Australian tax policies either), there is a reason I run the way I run.



I could put myself on the payroll, either in wages or dividends (pros and cons to both, basically a personal decision)...



HOWEVER, as I run a limited company, my main goal is to retrieve every last penny I personally put into it, as quickly as I can.  And this "pay-back" is not taxed.  It is simply a re-payment of a personal loan.



There is a reason I expedite this payback...  If anything should happen to the company, and lots of things could go wrong, at the very least I want to recoup quickly my initial investment, as with a limited corp my company and myself are two separate entities.  If I crash and kill someone, the company will take the brunt.  That has bankrupted other companies (even though I carry $5,000,000 liability).  If the company goes kaput, so be it...  The idea is to get your personal loan out and away from the company as quickly as possible.



This is why I am not on the payroll.

[Angry White Male]

And as an example of just how quickly trucks can cause damage...



A dump truck here derailed a train a few years back.  That boo-boo was just short of $5,000,000 to clean up.

[Anonymous]

And as an example of just how quickly trucks can cause damage...



A dump truck here derailed a train a few years back.  That boo-boo was just short of $5,000,000 to clean up.

Unless there's alcohol involved with a vehicle, class one railways are liable.

[Angry White Male]

Unless there's alcohol involved with a vehicle, class one railways are liable.

Nope.  ICBC paid.  Dump truck driver got stuck on the tracks.  Not sure if he was blocked in by traffic, or had a breakdown...  Either way, he was on the tracks.



And he was hit.  At that time trains went through here doing about 70+ km/h.  There were train engines and cars just sitting in the farmers field along the highway.



It was quite surreal to see.



They slowed the trains on that stretch after that incident, since they cross many now busy side roads, in what was once a rural area with little traffic.



The nearly $5,000,000 cleanup was carried by trucks ICBC policy.

[Angry White Male]

Happened on Glover Road here in Langley.  



There's been many car/truck/train collisions on Glover.



That was probably one of the most spectacular!



And more will happen!

[Angry White Male]

Train hit an ambulance a couple years back, killing the old lady they were transporting.



Train killed a flagger with her truck a couple years back also...



All on Glover Rd.



Notorious stretch.



Not the trains fault, as these people should not be on the tracks.



However, we now have big city traffic, and that creates a problem for rail.