At a recent meeting, the audit partner from Sloan Partners LLP advised us that our accounting system did not provide enough internal control. The team at Infonumerix Inc. immediately went to work and installed a better system for us and trained our staff. The new system provides better controls and reports for us. We are thrilled with the results! Brigitte B. Executive Director, Prominent Charitable Organization				Pay Less Tax Now! (click here) Ask Us This is where you can direct questions to our team of professionals. Looking for answers? Click here to submit your question to our experts. I am installing Oracle SE into our first warehouse in the near future. How can I integrate a parcel scale so the weight is input into the proper field on the shipping form? Is PC software necessary? I've been told that I should incorporate my business since I can't be personally sued, just the business. Is this true or false? I would like to know if the interest I paid on line of credit and credit cards for stock trading is tax deductible. Also are the commissions paid on the trades deductible as well. I made some gains by trading stocks.-Most of the money for trading is borrowed(line of credit)- do I get refund on the interest. I am renting space with another massage therapist. We are calling it A Massage For All Seasons. However, we do not wish to be a partnership. We would prefer to keep our expenses, liabilities and revenues separate. Can two massage therapists operate under the same business name as sole proprietors or should one person be a sole proprietor and the other be the independent contractor. What is the best way for two massage therapists to share the same office space? My lawyer said I should have a "Shareholders' Agreement". Why? Why does my bank want security and a personal guarantee before they will give a loan to my business? As a sole proprietor of a small growing business, when is the right time to incorporate? Can I write off any house expenses on my tax return? How do I register for HST? Q: : I am installing Oracle SE into our first warehouse in the near future. How can I integrate a parcel scale so the weight is input into the proper field on the shipping form? Is PC software necessary? A: We are not too familiar with Oracle SE, however if you are running forms in client/server mode you should be able to to use an ActiveX control. We have assumed that you're not using web mode. The easiest way to do this is to use Visual Basic or C++ to develop the control and pull the control into Forms. If you use Visual Basic, you can use the standard controls. If you use C++ you would then need to write a wrapper to access the ActiveX control.   Back to top Q: : I've been told that I should incorporate my business since I can't be personally sued, just the business. Is this true or false? A: This is an easy question, but has a complicated answer. Generally, an incorporated business has "limited liability", that it is liable to satisfy a claim up to the value of its assets. The liability does not extend past the corporation to the shareholders unless there are extenuating circumstances such as gross negligence. Many banks and other lenders will however, request personal guarantees from the owners (shareholders) so that they can not escape financial responsibility by hiding behind the incorporating documents. Unfortunately, there is not a true/false answer and the question is best dealt with by your lawyer who can advise on your particular situation. We have published a Discussion Paper on Incorporation which you can request by email Incorporation Discussion Paper.   Back to top Q: : I would like to know if the interest I paid on line of credit and credit cards for stock trading is tax deductible. Also are the commissions paid on the trades deductible as well. A: The primary test to determine the deductibility of expenses such as interest and commissions is whether they were incurred for "the purpose of earning income". If so, then there is no problem. Interest expenses are claimed in schedule 4 of your personal tax return. Commissions paid to acquire securities are included in the cost, and commissions paid on the subsequent sale are recorded as costs of disposition. Securities transactions are reported on schedule 3 of the tax return.  Back to top Q: : I made some gains by trading stocks.-Most of the money for trading is borrowed(line of credit)- do I get refund on the interest. A: The interest paid on money borrowed for investment purposes is included as an expense in your personal tax return. There is a line for the expense in schedule 4 of the return.  Back to top Q: : I am renting space with another massage therapist. We are calling it A Massage For All Seasons. However, we do not wish to be a partnership. We would prefer to keep our expenses, liabilities and revenues separate. Can two massage therapists operate under the same business name as sole proprietors or should one person be a sole proprietor and the other be the independent contractor. What is the best way for two massage therapists to share the same office space? A: In Ontario, business names must be registered so that it would be difficult for two independent therapists to share a business name. I would suggest that one of you register the name and use the name on your promotional material. However, you should each bill patients using your own names and maintain separate bank accounts for revenues and expenses. In completing your personal tax returns, you would each complete a T2124 schedule as a sole proprietors.  Back to top Q: : My lawyer said I should have a "Shareholders' Agreement". Why? A: A "Shareholders' Agreement" is an important document that defines the way that shareholders of a private company deal with each other. We have written a discussion paper that explains this in some detail.   Back to top Q: : Why does my bank want security and a personal guarantee before they will give a loan to my business? A: A bank is a "lending institution" and operates to make a profit for its shareholders. The bank is no different than you are. The security and guarantee are to ensure that if your business is unable to repay the loan, the bank can use the security to prevent or reduce its loss. It is not that the bank does not "trust" you. The bank is just applying good business judgement.  Back to top Q: : As a sole proprietor of a small growing business, when is the right time to incorporate? A: There are many factors that assist us in answering this question. Some are legal, since incorporation may provide limited liability and some are tax related since a corporation may qualify for a lower tax rate on the first $200,000 to $300,000 of income. Corporations may also elect to have a year end different than December 31, so there may be some deferral possibilities as well. Since each situation is different, there is no general answer. Please email us for a more detailed "Discussion Paper" or arrange to meet with one of our partners. We do not charge for the first hour of consultation.   Back to top Q: : Can I write off any house expenses on my tax return? A: If you run a bona fide business from your house, you may write-off reasonable expenses related to the business. If you are an employee and perform at least 50% of your duties in a home office, you may be eligible for home office expense write-offs. You should review your particular circumstances with a professional tax advisor.  Back to top Q: : How do I register for HST? A: If you are a sole-proprietor, you can call 1-800-959-5525 and register over the telephone. You will need to provide your personal information and your Social Insurance Number. If your business is incorporated, you will need to complete a Request for Business Number application form and provide a copy of the Articles of Incorporation.  Back to top