They say you haven't tasted love until you have gazed in to the eyes of your first grandchild.
With permission, I share this heroic two-part story about some very wonderful grandparents. I have changed it somewhat and toned down some of the graphic content. It occurred several years ago, and some distance from here.
My friends had an idea what was going on inside the sixth floor apartment, but could not be certain until visual contact was established. It was a very unhealthy situation for their helpless little grandson.
They phoned and phoned and phoned again. No answer. They gained access to the building, and banged on the apartment door several times, but no one responded. Whatever demons had been taunting the little boy's guardians had control... for the moment.
"Well, it's been a good life for me, this far. Wish me luck!"
She argued, but not convincingly. What choice did they have? This had been going on for years. They needed proof before the courts would intervene.
Stepping out of the car, he did not hesitate, other than to re-tie his shoes to make sure he would have a sure foothold. And then he began to climb. It was winter, and this was going to hurt. Getting up out of a chair hurt. This would hurt worse, but the little guy was worth it. No question.
Grandma's heart was in her throat while grandpa wrestled his once agile frame over the railing of the first deck and stood on it, stretching out his body enough to reach the bottom of the second deck. One hand on the deck, one hand on the window frame, and one foot on the other window frame enabled him to wriggle up a couple of feet and strengthen his grasp on the second floor railing.
This process was repeated until he reached the six floor balcony. He slid open the unlocked door, and peered across the living room at the little critter. His heart sunk. The room was disgusting. Nothing about it didn't stink. He resisted the urge to throw up.
The child recognized grandpa right away and came quickly to his arms. Grandpa took a few quick pictures, stepped by the sleeping adults, and slipped out the front door of the apartment.
To be continued...
Grandpa, or "Spidypants" as I like to call him, was a businessman, and had enough control over his own life and time and finances to make a positive difference in the life of the young one whose blood flowed through his veins.
Always seeking to strike a balance between tax incentives to take risk, and (arguably) the tax advantages some businesses enjoy, the recent federal budget proposes upcoming legislation to address some of these issues.
Small businesses benefit from a reduced federal corporate income tax rate of 10.5 per cent on the first $500,000 of qualifying active business income earned by a Canadian-controlled private corporation (CCPC). Gradual reductions in the small business tax rate are currently legislated for 2017, 2018 and 2019. However, the budget proposes that the small business tax rate remain at
10.5 per cent after 2016.
Consequently, the budget proposes to maintain the current gross-up factor and dividend tax credit (DTC) rate applicable to non-eligible dividends. The gross-up factor applicable to non-eligible dividends will remain at 17 per cent and the corresponding DTC rate at 10.5 per cent of the grossed-up dividend amount.
The small business deduction reduces the federal corporate income tax rate applying to the first $500,000 per year of qualifying active business income of a CCPC.
There is a requirement to allocate the annual eligible income limit of $500,000 among associated corporations, and rules intended to prevent the multiplication of access to this small business deduction unreasonably. The budget proposes changes to address concerns about partnership and corporate structures that multiply access to the small business deduction.
The eligible capital property (ECP) regime governs the tax treatment of certain intangible assets - the stuff you can't see or touch, other than on paper, such as goodwill, licences, franchises and quotas. The budget proposes to replace the ECP regime with a new class of depreciable property.
Under the current system,
50 per cent of the gain resulting from the sale of ECP is included as active business income. Under the proposed rules, the gain from the sale of ECP will be treated as capital gains, taxed at a higher rate than active business income. These proposed changes may, in effect, increase the taxes paid on the sale of this type of asset.
Starting Jan. 1, 2017,
100 per cent of expenditures that would previously have been included in the CEC pool will be included in the new proposed CCA class.
To reduce the compliance burdens for businesses with relatively small eligible capital expenditures, the budget proposes to allow the business to deduct the first $3,000 of incorporation expenses as a current expense instead of having these expenses added to the new CCA class.
These measures will apply beginning Jan. 1, 2017, with special transitional rules to apply.
As always, this article is not meant as individualized tax or legal advice. Readers should consult their own tax professionals before proceeding with a strategy.
Mark Ryan is an advisor with RBC Wealth Management, Dominion Securities (member CIPF) and can be reached at [email protected], or by calling 250-960-4927.
