How Dental Clinics Can Reduce Taxes and Increase Profit with Strategic CPA Tax Planning

Dental tax planning is essential for dentists seeking effective corporate tax strategies, and Gondaliya CPA offers expert services as a dentist tax accountant to optimize your dental corporation tax approach. With specialized knowledge in accounting for dental corporations, incorporated dentist tax planning, and CPA tax planning for dentists, Gondaliya CPA helps maximize tax savings and improve your dental practice profit.

Quick Summary

Strategic dental tax planning reduces a clinic’s tax and lifts its profit by combining the right corporate structure, compliant income splitting, well-timed equipment purchases, and an exit plan built years before the sale. Please note the savings compound only when the work is done across the year and documented, because the CRA tests reasonableness and TOSI on the records you keep, not on the intention behind them.

Reading time: 28 minutes.

The Numbers That Matter

Dental clinics sit alongside other owner-managed sectors we serve, and the tax planning levers shift with the assets each business holds. Here are ten sectors and where the planning opportunity concentrates.

• Dentists & dental practices: Everything in this article, from the incorporation threshold to the lifetime capital gains exemption on a practice sale, is built around how a dental corporation actually earns and distributes profit.
• Medical doctors & physician professional corporations: Physicians face the same salary and dividend decision, with passive investment income inside the corporation the usual constraint on the small business deduction.
• Daycare, childcare & CWELCC services: Where profit is retained and the business passes to family, the estate freeze and family trust questions are the same ones a dentist asks.
• Real estate investors, landlords & holding companies: Property held in a holding company alongside the practice needs the adjusted cost base tracked and the GST/HST treatment planned on any transfer.
• Property developers & builders: Asset versus share structuring across several project entities is the same analysis a dentist runs when buying or selling a practice.
• Construction, general contractors & skilled trades: Equipment capital cost allowance and owner compensation are the two recurring levers, exactly as they are for a clinic buying chairs and imaging.
• Technology startups & SaaS: An estate freeze and early QSBC share testing before an exit matter more here than anywhere, and the mechanics match a dental practice sale.
• E-commerce & online retailers: Volatile profit makes instalment and dividend timing the main lever, alongside GST/HST registration on taxable sales.
• Restaurants & food and beverage: Holding the property apart from the operating company protects it, the same logic that applies when a dentist owns the clinic premises.
• Transportation, logistics & trucking: Fleet financing turns the lease versus purchase question into an annual decision, run on the same net present value comparison set out above.
• Consulting Firms: Income splitting within the TOSI rules and quarterly instalment planning are the recurring work for owner-managed consultancies.

Professional Guidance in Dental Tax Planning: How Gondaliya CPA Supports Canadian Dentists

Dental tax planning can get tricky. You need know-how to handle professional corporation rules, CRA laws and the timing of every decision that affects the return. Gondaliya CPA offers corporate tax planning services that fit your practice, and we focus on incorporated dentists and dental professional corporations across Toronto, Ontario and Canada.

We help you with the levers that move the number: when to incorporate against the small business deduction limit, the salary and dividend mix, income splitting tested against the TOSI rules, capital cost allowance and purchase timing, passive investment income against the $50,000 threshold, GST/HST on taxable services, and the lifetime capital gains exemption on an eventual sale.

Our team follows CRA and Ontario practice closely and builds the plan around your own facts rather than a template. Whether you are incorporating, buying into a practice, financing equipment, or preparing an exit, we give clear advice based on the current rules, including what changes in 2026.

• Small Business Deduction limit: $500,000 of active business income
• Ontario small business corporate tax rate: 3.2% after the small business deduction
• Adjusted aggregate investment income threshold: $50,000
• GST/HST registration threshold: $30,000 of taxable supplies
• QSBC share holding period: 24 months without breaks
• QSBC active asset test: At least 90% of company assets active in the business
• CCA Class 8, general equipment: 20%, including dental chairs
• CCA Class 12, small tools: Items costing less than $5,000
• CCA Class 50 and 52: Computers and software
• TOSI: Applies where family payments do not reflect real involvement

• Dental professional corporation (DPC): The corporation through which a dentist practises, recognized by RCDSO and subject to CRA rules.
• Small business deduction: The reduced corporate tax rate on the first $500,000 of active business income.
• Passive investment income: Investment income inside the corporation, which erodes the small business deduction above $50,000.
• TOSI: Tax on Split Income, taxing split income at top rates where family members are not genuinely involved.
• Excluded shares: Shares meeting the TOSI exception tests, based on real work done and ownership conditions.
• Capital cost allowance (CCA): The deduction spreading equipment cost across years by asset class.
• Recaptured depreciation: The clawback of earlier CCA claims that can arise on an asset sale.
• Asset purchase: Buying specific assets such as equipment, goodwill or patient lists rather than the company.
• Share purchase: Buying the whole company, including all assets and debts.
• QSBC shares: Qualified small business corporation shares, which must meet CRA holding and active asset tests.
• Lifetime capital gains exemption (LCGE): The exemption sheltering capital gains on qualifying shares.
• Vendor take-back mortgage: Seller financing on a practice purchase, needing clear paperwork.
• Individual Pension Plan (IPP): A registered plan used alongside or instead of an RRSP to defer tax.
• Estate freeze: Locking today’s share value so future growth accrues to the next generation.
• EBITDA margin: The profit measure buyers use when valuing a practice.

Dental Tax Planning and Corporate Strategies for Dentists: Gondaliya CPA’s Expert Dentist Tax Accountant Services

Dental Tax Planning Fundamentals for Dentists

Dental tax planning helps dentists keep more of what they earn while following Canada Revenue Agency (CRA) rules. A dentist CPA or dental accountant knows the best ways to handle taxes for dental offices. They can guide dentists through tax laws and make sure nothing is missed.

• Understand your tax obligations.
• Use strategies that fit your dental practice.
• Stay up to date with CRA changes.

When Should a Dentist Incorporate? Timing and Income Threshold Analysis

Dentists should think about incorporating once their income goes beyond the small business deduction limit. This limit is currently $500,000. Incorporated dentists pay less tax on income inside the corporation than they would personally. Also, incorporation offers some protection for personal assets and opens doors to deductions that solo dentists might not get.

• Incorporate after passing the income threshold.
• Take advantage of lower corporate tax rates.
• Protect personal assets from business risks.

Benefits and Drawbacks of Incorporation for Dental Professionals

Incorporation brings several benefits:

• Lower corporate tax rates save money.
• Liability protection keeps personal assets safe.
• Income splitting lets family members share earnings through shares.

But there are some downsides too:

• More paperwork and rules to follow.
• Extra costs for setting up and running the corporation.
• Corporate tax filing deadlines differ from those for individuals.

Ontario Dental Professional Corporation Rules and Compliance

A Dental Professional Corporation (DPC) must follow CRA rules carefully. Dentists need to keep clear records, file reports on time, and obey laws for health professionals in Ontario.

These rules help ensure that everything runs smoothly and legally within dental corporations.

College of Dental Surgeons of Ontario (CDSO) Requirements for Dental Incorporation

Dentists who want to incorporate in Ontario must meet CDSO rules. This means holding the right licenses and paying membership fees each year. These dues help support the profession’s standards. Following these requirements means the dental corporation stays legal and enjoys protections like limited liability.

Step-by-Step Incorporation Process for Dentists in Ontario

1. Pick a corporate name that meets Ministry guidelines.
2. File Articles of Incorporation with ServiceOntario; pay required fees.
3. Get necessary licenses including registration with RCDSO.
4. Set up corporate records:
   • Open a bank account under the corporation’s name
   • Keep bookkeeping accurate and up to date
5. Follow all annual filing deadlines from CRA and CDSO.

Doing these steps right helps dentists avoid problems while benefiting from incorporation under Canadian law specific to dental practices.

Income Splitting and Corporate Tax Strategies

Income splitting helps dentists spread income among family members in lower tax brackets. This can reduce the total family tax bill. For incorporated dental practices, using income splitting smartly boosts after-tax cash flow while staying within CRA rules.

Dental accountants who know the dental field spot income-splitting chances that fit each practice’s situation. Common methods include paying a spouse a salary, sharing dividends with family shareholders, or paying adult children involved in the business. You need proper records and must follow CRA rules closely to avoid trouble.

Spousal Income Splitting: Salary vs. Dividends and CRA Compliance

Spouses often get paid by salary or dividends when they help in the dental practice or own shares.

• Salary: The spouse must actually work reasonable hours for a fair wage. This cost reduces corporate income but you need timesheets or contracts to prove it.
• Dividends: Dividends depend on ownership, not work done. They don’t lower corporate taxes but provide personal returns taxed differently.

The CRA watches these moves carefully with tests on reasonableness and TOSI rules. Salaries should match actual duties; paying too much risks denied deductions or reassessments. Dividends to non-active shareholders can trigger TOSI penalties unless exceptions apply.

A dentist CPA advises balancing salary and dividends based on tax rates, company profits, and family roles. This helps keep more money after tax without breaking rules.

Understanding Tax on Split Income (TOSI) Rules for Dentists

TOSI rules stop people from aggressively splitting income to family members who don’t really work in the business. It taxes that income at the highest rates.

For dentists with professional corporations:

• Family getting dividends or other income must meet “excluded share” tests, based on real work done.
• The “excluded business” rule applies if over 90% of revenue comes from unrelated clients.

If these rules aren’t met, split incomes get taxed heavily.

Dental tax planning means checking how much family members work, invest, and contribute before sharing income that may be hit by TOSI.

Income Splitting with Adult Children: Opportunities and Limitations

Dentists may involve adult kids as shareholders or employees for succession planning and tax benefits.

Some ways include:

• Paying adult children reasonable salaries for real work in the clinic.
• Giving dividends if they hold excluded shares and meet active involvement tests by CRA.

But there are limits. Passive ownership without real effort triggers full TOSI penalties. Poor paperwork also risks denied deductions or audits.

Dentist CPAs suggest clear written agreements about roles plus regular checks to keep benefits under current laws.

Structuring Dental Corporations for Tax Efficiency

Setting up a dental professional corporation brings legal and tax advantages for Ontario dentists:

Benefits

• You get small business deduction up to $500,000 which cuts federal/provincial corporate taxes compared to self-employment.
• You can keep earnings inside the corporation at lower tax rates before paying yourself.
• Being a regulated entity under RCDSO builds patient trust.

Drawbacks

• There are extra admin costs like annual T2 filings, careful bookkeeping especially for payroll (T4/T5), plus partial GST/HST rules because health services partly qualify.
• Passive investment income limits affect eligibility for small business deduction; dentists need to watch this yearly after 2026 rule changes.
• You must follow both RCDSO provincial rules on practice scope plus federal tax rules about what activities your corporation can do.

A dentist CPA guides you balancing profit retention with these rules so your practice grows steadily under Canada’s changing tax laws.

Acquisition, Financing, and Equipment Tax Planning

Dental tax planning matters a lot when you buy or sell a dental practice. Knowing the difference between asset purchase and share purchase helps you save on taxes. Using the lifetime capital gains exemption (LCGE) can also boost your after-tax money.

Asset Purchase vs. Share Purchase: Tax Implications and Purchase Price Allocation

When buying a practice, you usually choose between buying assets or shares. An asset purchase means you buy specific things like equipment, goodwill, or patient lists. This lets buyers spread out the purchase price among assets to claim capital cost allowance (CCA). But sellers might face higher taxes due to recaptured depreciation.

A share purchase means buying the whole company, including all assets and debts. Sellers can use the LCGE if they qualify as small business corporation (QSBC) shares under CRA rules. Buyers don’t get CCA step-ups but avoid immediate tax hits and take on company liabilities.

Allocating the purchase price carefully in an asset deal helps lower taxes by placing values in proper CCA classes while following fair market value rules.

Financing Options and Tax Considerations for Dental Practice Acquisitions

Getting money for a dental practice needs teamwork with your dentist tax accountant or dental accountant. They help make sure interest expenses are deductible and cash flow stays healthy.

Common financing ways:

• Bank loans: Interest is usually deductible for professional corporations.
• Vendor take-back mortgages: These often come with flexible terms but need clear paperwork.
• Private loans: Often used for associate buy-ins; must avoid problems with shareholder loans under CRA rules.

Tax rules want interest to be reasonable, linked directly to making income in your incorporated dental practice. Your dentist CPA will guide when to pay interest for best tax results.

Transition Planning: Associate to Owner Structures and Tax Efficiency

Moving associates into ownership requires smart income splitting while following CRA’s TOSI (Tax On Split Income) rules. These rules stop unfair dividend sharing with family members who don’t work actively.

Key tips:

• Pay salaries that fit the work done.
• Use excluded shares when possible under TOSI exceptions.
• Keep clear roles in associate agreements.

Good planning cuts personal taxes without breaking TOSI rules. Your dental accountant helps set this up clearly.

Equipment Purchases: Depreciation and Capital Cost Allowance (CCA) Planning

Buying dental equipment involves big costs, so planning depreciation is smart. You can reduce taxes by claiming capital cost allowance (CCA) on these purchases.

Canada allows immediate expensing of up to $1.5 million per year under recent changes—good news for dental clinics looking to write off new equipment fast.

Your dentist CPA will help pick correct CCA classes like:

• Class 8 (20%): General equipment including dental chairs
• Class 43(1)/43(2): Clean energy stuff if it applies
• Class 12: Tools costing less than $5,000
• Class 50/52: Computers and software

Buying equipment before your fiscal year ends boosts deductions in that tax year, saving cash flow now.

Lease Versus Purchase Decisions: Financial and Tax Impact for Dental Clinics

Choosing to lease or buy equipment depends on your clinic’s needs and tax goals. Your dental accountant can break down pros and cons.

Why buy?

• You get accelerated CCA deductions that cut taxable income quickly.
• Owning builds equity over time—helpful when selling later.

Why lease?

• Monthly costs stay steady, helping budgets.
• Lease payments count as operating expenses fully deductible right away.

Compare net present values of both options based on how long you expect to use the gear. That way, you find what works best for your clinic’s finances during dental tax planning.

Retirement, Succession, and Exit Planning for Dentists

Retirement, succession, and exit planning matter a lot when it comes to dental tax planning. Dentists need to protect their wealth and make sure their practice changes hands smoothly. A dentist CPA or dentist tax accountant helps dental professionals through these tricky steps. They aim to get the best after-tax results while following CRA rules.

Retirement Planning Essentials for Dental Professionals

Retirement planning for dentists means setting up money plans that fit how dental corporations work. A dental accountant helps dentists save more by using registered plans like RRSPs and IPPs (Individual Pension Plans). These plans let you put off taxes in ways the government allows.

Other ideas include:

• Maxing out RRSP/IPP contributions: Use any unused room to lower taxes.
• Incorporated dentist tax planning: Keep money inside your professional corporation to pay less tax now.
• Tax-smart investments: Watch passive income so you don’t lose small business deductions.
• Estate freezes: Lock current share values so future gains pass to others efficiently.

A dentist CPA works with you to match your retirement goals with your practice’s profits, avoiding surprises on taxes.

Exit Planning: Succession Options and Their Tax Implications

Exit planning means deciding how you hand over your dental practice while paying as little tax as possible. You can sell assets, transfer shares inside the family or associates, or merge with another practice. Each way has different tax effects under Canadian law.

Dentist CPAs focus on:

• Choosing asset or share sales based on capital gains treatment.
• Using the lifetime capital gains exemption amount when selling qualifying shares.
• Setting up holding companies for easier transfers.

Your plan must meet CRA’s rules about qualified small business corporation (QSBC) shares to get tax breaks. Starting early gives time to fix company setups before selling.

Lifetime Capital Gains Exemption (LCGE): Qualification and Application

The LCGE lets incorporated dentists protect up to $971,190* of capital gains from federal taxes when they sell QSBC shares. To qualify:

• You must own the shares for at least 24 months without breaks.
• At least 90% of company assets have to be active in business during that time.

Dental accountants check if you meet these rules well before selling. Missing details might cause you to lose this exemption completely.

Using LCGE cuts your taxes a lot but needs careful timing with your overall dental tax planning—like balancing pay and passive income.

*Amount for 2026; CRA updates this yearly

Preparing Your Dental Practice for Sale: Tax and Financial Benchmarks

Getting your dental practice ready for sale means checking key numbers buyers watch closely. A good dental accountant reviews profits, cash flow, equipment value, lease terms, associate agreements, and debts. These factors shape how much buyers will pay.

Key points to check:

This thorough check helps avoid price disputes later. It also reduces audit risks from things like goodwill or shareholder loans misuse.

Measuring Performance: Dental Practice Financial KPIs and Industry Metrics

Tracking financial KPIs lets dentists stay on top of their clinic’s health—especially before planning an exit. A dentist CPA helps monitor numbers like revenue per chair hour, staff costs as a percent of expenses, patient retention rates, average procedure fees, accounts receivable turnover days, and net profit margin after corporate taxes.

Watching these numbers regularly helps you decide when to reinvest in the practice or take money out. This fits well with smart dental tax planning that balances today’s cash flow with future wealth growth.

Sharad Gondaliya, CPA (Canada & USA), has over 10 years helping Canadian business owners with smart financial decisions.

Need help with retirement or exit plans? Contact our licensed Ontario firm specializing in incorporated SMB dentistry at info@gondaliyacpa.ca or call 647‑212‑9559 today.

Ongoing Compliance and Year-Round Tax Planning

Dental tax planning takes steady work all year long. You need to keep up with rules and plan ahead. A dentist CPA or dental accountant helps your practice follow CRA rules while making smart tax moves.

Common Tax Compliance Issues and CRA Audit Triggers for Dental Practices

Dental offices face certain tax issues that can cause CRA audits. Problems often show up when income is not classified right or shareholder benefits are reported wrong. Also, dentists sometimes don’t apply TOSI rules well or lack good proof for expenses.

Here are some common audit triggers:

• Paying family members salaries without clear roles.
• Having too much passive investment income in the professional corporation.
• Incorrect capital cost allowance (CCA) claims on dental gear.
• GST/HST filing mistakes about exempt versus taxable items.

Good dental tax planning spots these problems early. Keep clear books, follow CRA rules exactly, and keep solid records for every deduction claimed. If a letter does arrive, our CRA audit representation team responds on the corporation’s behalf.

GST/HST and Municipal Business Taxes Relevant to Dental Clinics

Dental clinics deal with tricky GST/HST rules. Some services are exempt, like general dental care, but others like braces or cosmetic work are taxable. If your taxable sales go over $30,000 a year, you must register for GST/HST and file returns on time.

Local business taxes differ by city in Ontario. Your municipal code affects how much you pay in local levies.

A smart dental tax plan checks if signing up voluntarily for HST helps you get input tax credits on big buys, like new equipment or lease improvements. Knowing what’s exempt keeps you from costly mistakes when you file your returns.

Location-Specific Considerations: Ontario and GTA Demographics Affecting Practices

Ontario’s small business corporate tax rate is 3.2% on the first $500,000 active business income for professional corporations after the small business deduction.

Dentists in Toronto and the GTA should note their professional corporation annual filing deadlines—usually six months after their fiscal year ends—to avoid fines.

Where you practice matters too. Patient demographics in places like Vaughan or Mississauga influence your cash flow cycles. It helps to blend local market trends with your tax planning.

Quarterly and Annual Tax Planning Checklist for Dental Professionals

Quarterly checks plus a yearly list keep your taxes on track:

• Check payroll each quarter to meet T4 slip salary rules.
• Match accounts payable and receivable quarterly.
• Watch passive investment income yearly; it can limit deductions.
• File professional corporation tax returns yearly before deadlines.
• Update associate agreements when changes happen that affect pay or taxes.

Sticking to this routine lowers risks and helps you claim all legal deductions.

Maintaining Accurate Bookkeeping and Corporate Tax Filing for Dentists

Keeping good books is key. A dentist CPA or dentist tax accountant can set this up right. Use programs like QuickBooks or Xero to track expenses clearly between capital assets and day-to-day costs.

Tax returns (T2) must be spot-on too. Show salaries, dividends, and retained earnings correctly because mistakes here bring audits that waste time and money.

Regular reconciliations plus expert reviews make sure every entry supports real claims. This smooths dealings with taxing bodies across Ontario including Toronto offices.

Specialized Accounting Services Supporting Dental Practices’ Compliance and Growth

Gondaliya CPA offers services built just for dentists managing complex taxes. We advise on how to set up your corporation best, create compensation plans that follow TOSI rules, optimize CCA claims on expensive tools, and handle bookkeeping made for RCDSO standards.

We keep track of deadlines like the professional corporation annual filing date so you avoid penalties. Plus, we give clear reports showing where you might reduce taxes legally by timing dividends or buying assets smartly.

Working with Gondaliya CPA means you get focused help with medical/dental sector knowledge plus hands-on experience with SMB incorporation challenges in Ontario’s busy markets.

How Gondaliya CPA Assists Dentists with Incorporation and Corporate Tax Planning

Gondaliya CPA works closely with dentists on dental tax planning. We help dentists set up incorporation to lower corporate taxes. Our dentist CPAs and dental accountants follow CRA rules carefully. They create plans that fit each dental practice in Ontario. This way, dentists keep more of their income after taxes.

Comprehensive Tax Preparation, Bookkeeping, and Advisory Services for Dental Practices

Our dentist tax accountants handle all your tax needs. We take care of T2 corporate tax filing, payroll, and GST/HST returns. We clean up bookkeeping and offer advice year-round. Using QuickBooks and Xero helps us keep your books accurate. This makes sure your dental accounting is always ready for audits. Plus, we find every possible deduction allowed by Canadian tax law.

Here’s what we cover:

• Corporate tax filings
• Payroll management
• Bookkeeping cleanup
• GST/HST returns
• Ongoing financial advice

Strategic Business Advisory Tailored to Dental Professionals’ Unique Financial Goals

We offer business advice designed just for dental pros. Our dentist CPAs talk about how to plan pay, manage passive income, and buy capital assets at the right time. We help set up family shareholder arrangements that follow TOSI rules too. These plans aim to boost profits while staying within CRA guidelines for professional corporations.

We focus on:

• Compensation planning
• Passive investment income management
• Timing for buying assets
• Family shareholder arrangements under TOSI

Supporting Dental Practice Acquisition, Financing, and Transition Planning

When dentists buy or sell practices, we guide them through the process. Our dentist tax accountants explain differences between asset sales and share sales. We discuss how goodwill affects lifetime capital gains exemption (LCGE). We also advise on using holding companies for flexible financing options. Plus, we assist with succession planning based on current CRA rules in Ontario.

Key services include:

• Practice purchase or sale advice
• Asset vs share sale guidance
• Goodwill valuation impact on LCGE
• Holding company setup for financing
• Succession planning support

Transparent Service Packages and Pricing for Ontario Dentists

We charge a flat annual fee including HST made just for incorporated dental practices in Toronto and Ontario. This clear pricing covers all main services—from filings to consultations—so no surprise bills pop up later. We break down costs based on number of corporations, transactions, payroll work, equipment use, and depth of planning needed.

Our pricing offers:

• Flat annual fee with HST included
• Coverage of core services
• Clear cost breakdowns by activity level

Contact Gondaliya CPA for Expert Dental Tax Planning and Accounting Consultation

Need trusted dental tax planning? Our experienced dentist CPA team serves dentists across Toronto and Ontario. Call us at 647-212-9559 or email info@gondaliyacpa.ca today. We provide strategies focused on incorporated dental clinics looking to improve profits under Canada’s changing tax rules.

FAQs on Dental Tax Planning and Dentist CPA Services

Key Numbers at a Glance for Dental Tax Planning

Who This Is For / Not For

• For: Incorporated dentists seeking tax optimization in Ontario; dental practices aiming to comply with CRA; dentists planning retirement or succession; those buying/selling practices.
• Not For: Sole proprietors without incorporation; non-dental professionals; clinics outside Canada looking for local advice; those who want DIY without expert help.

Quick Comparison Table: Asset Purchase vs Share Purchase

How To Choose the Right Dentist Tax Accountant in Toronto/Ontario?

Look for credentials (CPA), experience in dental sector taxation, understanding of Ontario’s professional corporation laws. Ask about client references and transparent pricing.

Why Trust Gondaliya CPA?

Gondaliya CPA has over 10 years serving Canadian dentists with specialized knowledge in incorporated dental practice accounting. We follow strict editorial policies ensuring accurate advice under current CRA regulations.

Dental Tax Planning Fit Check

This quick self-check flags where the planning opportunities and the risks sit for your clinic. Please answer the six questions below.

Want a checklist to work from? You can download our free dental tax planning checklist before your consultation.

Next Steps

Contact Gondaliya CPA at info@gondaliyacpa.ca or call 647‑212‑9559 to schedule your consultation. Get expert guidance tailored to incorporated dentists looking to maximize profits while ensuring full compliance. If our content helps, please add gondaliyacpa.ca as a preferred source on Google.

Published: July 29, 2026  ·  Last updated: July 29, 2026

Disclaimer: This article is educational information only and is not tax, legal, or financial advice. It reflects CRA and Ontario rules current to 2026, including the $500,000 small business deduction limit, the 3.2% Ontario small business corporate tax rate, the $50,000 adjusted aggregate investment income threshold, the $30,000 GST/HST registration threshold on taxable supplies, and the 24-month and 90% active asset tests for QSBC shares. Rules change and outcomes depend on your specific facts. Please consult a licensed CPA before acting. Fees include HST.