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6

In Canada, there is no gift tax. You can freely give a gift to your parents, and it will not even need to be reported to the government. They will be able to simply contribute their funds to their business in whatever way makes the most sense to them [this isn't relevant for you, just for them]. This assumes you are older than 18; younger than 18, there may ...


4

For you to "compensate Alice for her work" seems like the wrong framing. She is working for the corporation, not for you or your sole proprietorship. You are acting on a generous impulse to help your colleague and are not expecting anything in exchange for what you plan to give her, right? This would be a personal gift between friends and would be nontaxable ...


3

The least complicated way would be just to hand Alice some cash, with full agreement on both sides that is simply a gift between friends with no strings or expectations attached. Now on to the reasons why I feel you shouldn't do this: Please separate Alice's concerns from your own, as it only muddies the waters. Your current personal issues have no impact ...


2

Your reading of the line is correct. The two lines after the one you quote reinforce the statement. However you can get round this very simply by having your business pay you a salary. The salary is an expense to the business, but it is income to you. And it is income to you that is the limit on how much you can deduct for the home office. Of course paying ...


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