Can You Write Off Construction Costs? Writing off construction costs depends on the nature of the work and how the property is used. Both the IRS and CRA have specific rules on when and how these costs can be deducted. In the US, most construction costs for buildings or significant renovations are considered capital expenses, […]
Phantom Equity vs. Profits Interest Phantom Equity and Profits Interest are both ways to offer employees or partners a stake in a company without giving actual ownership. Phantom stock, also known as phantom equity or shadow shares, is a cash-based compensation plan that mimics actual stock ownership without granting real equity in the company. Employees […]
How to Write Off a Boat as a Business Expense? You can write off a boat as a business expense, but the IRS and CRA have strict guidelines. The IRS permits deductions for boats as long as they are used for business purposes, and you need to provide detailed records to qualify for deductions. The […]
Mortgage Restructuring Mortgage restructuring is when a borrower and a lender can modify the existing mortgage terms. This can involve extending the loan term, changing the payment schedule, or lowering the interest rate. For instance, a homeowner can negotiate the mortgage term from 15 to 30 years. The whole idea of mortgage restructuring is to avoid […]
Is coffee a business expense? Coffee can be considered a business expense if it’s for client meetings, team gatherings, or provided in the office. However, grabbing a coffee on your way to work is not a business expense. For instance, buying coffee for a client meeting at a café is likely deductible as a business […]
Small Business Restructure Small business restructuring means reorganizing business operations, finances, change of ownership or legal structure to reduce costs or improve overall growth. Organizational restructuring is all about maximizing efficiency, reducing costs, and adapting to market changes. While restructuring often comes with challenges such as shifts in job roles, staffing reductions, or process overhauls, […]
Payroll Deduction Loan Payroll deduction loans are a type of loan in which payments are automatically deducted from the borrower’s paycheck. Employers or credit unions offer this type of loan. It makes repaying loans easier for borrowers and can reduce the risk of missed payments for lenders. A payroll deduction loan is a type of financing […]
Cost Segregation Bonus Depreciation Cost Segregation Bonus Depreciation is a tax strategy property owners use to accelerate depreciation on certain parts of a building. It has two parts. Through cost segregation, property owners identify components like floors and lighting that can depreciate faster than the building. Next, with bonus depreciation, owners can deduct a large […]
Inventory Backflush Inventory Backflush is an accounting method that records the cost of the product after production. Once the product is finished, the costing system “backflushes” and deducts the material costs from inventory rather than tracking each component. It is also known as backflush costing. For example, a car manufacturer produces 100 cars. Instead of […]
Asset Dissipation Loan Asset Depletion, also known as Asset Dissipation, is a mortgage qualification method that allows you to use your liquid assets to prove income—even if you have little to no traditional employment earnings. Instead of relying solely on a paycheck, lenders apply a specific formula to calculate how much monthly income your assets […]
