Accotec Accounting Solution Inc.

09/13/2026

09/01/2026

Did You Know? Your Corporation's Money Is Not Automatically Your Money 💡

Many incorporated business owners assume: "The corporation is mine, so I can take money out whenever I want."
Legally and for tax purposes, your corporation is a separate taxpayer. Every dollar that leaves it has to be something: salary, a dividend, a repayment of money you lent the corporation… or a shareholder loan.
The shareholder loan trap
If you withdraw money and it sits in your shareholder loan account, both the Income Tax Act (CRA) and Québec's Taxation Act (Revenu Québec) contain a rule that can pull the full amount into your personal income — generally if it is not repaid within one year after the end of the corporation's taxation year in which the loan was made.
Unlike salary, the corporation gets no deduction. And repaying just before the deadline and re-borrowing right after may be treated as a series of loans and repayments, which does not fix the problem. An interest benefit can also apply while the loan is outstanding.

📌 Simplified example
Corporation year-end: December 31, 2025
Withdrawal recorded as a shareholder loan: $60,000 (March 2025)
Repayment deadline: generally December 31, 2026
If it isn't repaid by then, the $60,000 could generally be included in your 2025 personal income — meaning a reassessment of a year you thought was closed, plus possible interest.
Why it matters
The problem usually isn't the withdrawal. It's the withdrawal that was never properly characterized before year-end.
✅ Action point
Before your fiscal year-end, ask your CPA to review your shareholder loan balance and decide how to clear it: salary, bonus, dividend, or repayment. Each option has a different tax cost.
Tax treatment depends on the specific facts of each situation. This post provides general information and is not individualized tax advice.

07/31/2025

Did you know?
If you're self‑employed or operate a small business in Quebec, you may be able to claim a deduction for home office expenses—as long as the workspace is used regularly and exclusively for business.

This can include:
Rent or mortgage interest
Property taxes
Utilities
Home insurance
Maintenance and upkeep

🏠 Example: If your home office occupies 10% of your total home area, you may deduct 10% of eligible household expenses from your business revenue—resulting in significant tax savings.

📚 Important reminder:
Accurate records and documentation—floor plans, expense bills, and usage details—are essential to substantiate your claim under CRA and Revenue Québec rules.

📞 Need help with a proper calculation or audit-proof record‑keeping?
Reach out to us today:

Accotec Accounting Solution Inc.
📍 1666 Rue Thierry, Suite 103, Lasalle, QC, H8N 2K4
📱 +1 514‑715‑7274
✉️ [email protected]

03/11/2023

In Canada, individuals who have been diagnosed with ADHD may be eligible for the Disability Tax Credit (DTC), which is a non-refundable tax credit that can help reduce the amount of income tax you owe. The DTC is designed to provide financial assistance to individuals with disabilities or their caregivers to help offset the additional costs associated with managing a disability.

To qualify for the DTC, you must have a severe and prolonged impairment in physical or mental functions, including ADHD. To apply for the DTC, you must complete and submit a Form T2201, Disability Tax Credit Certificate, to the Canada Revenue Agency (CRA). Your doctor or other qualified medical practitioner must also complete and sign the form to confirm your diagnosis and describe how your condition affects your daily activities.

If your application for the DTC is approved, you may be eligible for other federal, provincial, or territorial tax credits, such as the Canada Child Benefit, the GST/HST credit, or the Working Income Tax Benefit. You may also be eligible for other disability-related benefits, such as the Registered Disability Savings Plan (RDSP) and the Canada Pension Plan Disability (CPP-D) benefit.

It's important to note that qualifying for the DTC does not necessarily mean that you will receive disability benefits or other financial assistance. However, the DTC can help you reduce your taxes and increase your net income, which can help you better manage the costs associated with your disability.

01/22/2023

Contact us today to learn if you are eligible for One-time Canada Housing Benefit for low income Canadian tax resident including a student who pays rent.