Can my spouse be a shareholder of my MPC in Ontario?
Yes. Business Corporations Act (Ontario) s. 3.2(4) permits an Ontario Medical Professional Corporation to issue non-voting shares to the physician’s spouse, child (of any age), or a trust for a…
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How does the small-supplier HST rule apply to a new practice?
Under Excise Tax Act s. 148, a health-service or dental practice with total worldwide taxable revenues below $30,000 over four consecutive calendar quarters is a small supplier and is not…
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What’s the tax treatment of practice goodwill I sell?
Since the 2017 removal of the eligible-capital-property (ECP) regime, goodwill is depreciable Class 14.1 property under Regulation Schedule II. On disposal, the seller reports (a) full recapture of any CCA…
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Can my medical corporation own my professional building?
Technically yes, but usually not the right structure. The tax and asset-protection standard is: a separate real estate Holdco owns the building and leases to the Medical Professional Corporation on…
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Do I need a separate corporation for my locum work?
Usually no. An Ontario physician’s locum billings can generally flow through the physician’s existing MPC provided the host clinic’s or hospital’s payment arrangement accepts the MPC as the billing entity….
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What HST rebate can my Ontario dental practice claim?
Most dental services (medical services, exempt supplies under ETA Schedule V, Part II) are HST-exempt, meaning the dental practice cannot claim ITCs on the HST embedded in its overhead. However,…
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Can I buy a dental practice through a corporation for tax purposes?
Yes, and structuring through a Dental Professional Corporation (DPC) usually with a Holdco is standard planning for a practice acquisition. Benefits include: tax-deferred accumulation of after-tax practice earnings inside the…
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How does the Small Business Deduction apply to my Ontario dental practice?
An Ontario Dental Professional Corporation (DPC) is a Canadian-controlled private corporation and qualifies for the Small Business Deduction under ITA s. 125 on the first $500,000 of active business income…
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What CPSO fees do I need to pay for my medical corporation?
CPSO charges an initial Certificate of Authorization application fee for a new Medical Professional Corporation, plus an annual renewal fee to keep the Certificate active. Both are deductible corporate expenses….
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Can an Ontario physician incorporate as an MPC?
Yes. Under Business Corporations Act (Ontario) s. 3.2 and Ontario Medical Association Regulation 39/02, an Ontario physician licensed by the College of Physicians and Surgeons of Ontario (CPSO) can incorporate…