Tax Planning For Business OwnersAny time you borrow money for the purpose of earning business income, the interest you pay on that debt is tax deductible.
When times are good, borrowing money to grow your business is a great way to expand more quickly with the benefit of a tax-deductible loan interest payment.
The loan/line of credit being used to pay for business expenses can also free up monthly revenue to direct towards other personal debt that is not tax deductible.
If the business winds down but the business loan still exists, the loan interest continues to remain tax deductible as a result of its original intent.
Borrowing money for your business can provide many advantages and you want to make sure, as a business owner, you are capitalizing on every advantage possible.
To learn more about this topic, please check the following article provided by the Financial Post.
At CompanyOn, we’re committed to helping our community of solo practitioners with information that features specific advice and guidance on how to run a business. It is for that reason we are partnering with individuals that are experts in their field and bring a wealth of knowledge on topics that matter to all of you.
Kevin Parton is an Executive Financial Consultant with IG Wealth Management group. His expertise is on personal and business financial planning that leads clients on a path to financial certainty. His work and that of his team has earned them a spot as one of the top 100 teams within IG Wealth Management across all 2,500 teams in Canada.
If you would like to learn more about personal and business financial planning, he can be found at [email protected]
Ready to make the switch?
Try Our Platform Free for 21 days.
See CompanyOn in Action
Schedule A Free 1:1 Personalized Demo