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Dispossing of non-current assets

3.76K viewsTax Questions

Is it an allowable expense if corporation’s owners dispose-off non-current assets to CAD 100,000, transferring the proceeds value in paid-in-capital account and then declaring the annual dividend from paid-in-capital account of the same amount? Is there any limit of the allowable expense or we can just use all amount as allowable expense?

Randy Dueck Changed status to publish December 23, 2019

Yes, you can take all amount as allowable expense and as per CRA, there is no limit for the annual dividend declaration.

Randy Dueck Changed status to publish December 23, 2019