Best Low cost Purchase Price Allocation ($3,500 to $8,500) Training Available for those with relevant long term experience.
Because all assets within the business are identified, measured, weighted, and a value is given, these are superior valuation reports.
There can be significant tax advantages for divorce clients.
There are specialized tax lawyers and accountants who work in this niche across Canada. We can put you in touch with them if needed.
On the commercial side:
If you are selling the business, there are tax considerations.
CRA has specific requirements for business valuations for the purpose of Purchase Price Allocation.
By identifying, measuring, weighting, and placing a value on all the assets cumulatively, we believe your client could achieve tax advantages not available with the old style asset, income, and market approaches to business valuation.
There are, of course, other advantages to having all of the assets identified, measured, weighted, and valued individually and cumulatively.
The tax treatment upon the sale of a business differs depending on whether the assets being sold are tangible or intangible. Here is a general overview of the tax implications for both types of assets in Canada:
This is just an overview and your tax lawyer must be consulted.
Tangible Assets:
1. Recapture of Capital Cost Allowance (CCA): If the sale price of the tangible assets exceeds their undepreciated capital cost (UCC), the difference is considered recapture, which is added to your income and taxed at your marginal tax rate.
2. Capital gains: If the sale price of the tangible assets exceeds their original cost, you may realize a capital gain. In this case, 50% of the capital gain is considered taxable income and is taxed at your marginal tax rate.
Intangible Assets (Goodwill):
1. Capital gains tax: When you sell your business and realize a gain on the goodwill, 50% of the gain is considered a taxable capital gain. The taxable portion of the capital gain is included in your income and taxed at your marginal tax rate.
2. Depreciation of Class 14.1 assets: As mentioned in the previous response, starting from January 1, 2017, expenditures on goodwill and other eligible capital property are added to the Class 14.1 pool and are subject to a depreciation rate of 5% per year on a declining balance basis.
By identifying, measuring, weighting, and placing a value on all the assets within the business, we offer superior valuation reports that can provide significant tax advantages for clients undergoing divorce proceedings. We have connections with specialized tax lawyers and accountants working in this niche across Canada, and we can put you in touch with them if needed.
Commercial clients can also benefit from our comprehensive approach to business valuation. The Canada Revenue Agency (CRA) has specific requirements for business valuations used for purchase price allocation purposes. By utilizing Eric Jordan's "25 Factors Affecting Business Valuation" methodology, we believe your client could achieve tax advantages not available with the old-style asset, income, and market approaches to business valuation.
25 Factors Affecting Business Valuation
You can click on each link to see why long term business experience is required to use the methodology. This is why accountants don’t use this methodology. Most of them would not have the required business ownership experience to begin the training.
There are numerous advantages to having all of your business's assets identified, measured, weighted, and valued individually and cumulatively:
1. Complete understanding of your company's worth: With a detailed assessment of all tangible and intangible assets, you'll have a comprehensive picture of your business's value.
2. Tax benefits: A thorough valuation can help identify potential tax advantages for both divorce and commercial clients.
3. Informed decision-making: A complete valuation provides the necessary information for making informed decisions about your business's future.
By choosing our low-cost business valuation service, you'll receive a thorough, accurate assessment of your business's worth. Eric Jordan's methodology, provides you with a comprehensive valuation that considers all aspects of your business. This detailed report will ensure you have a clear understanding of your company's worth, making it easier to navigate the complexities of purchase price allocation.
Choose our best low-cost business valuation service today and enjoy the benefits of a comprehensive, accurate, and affordable business valuation report that meets the requirements of the CRA and provides potential tax advantages for our clients.
eric@pin.ca
1 800-606-0310