NPVAdvisor : Hi,
NPVAdvisor : Is your surrent business a passthrough or a c-Corp?
NPVAdvisor : Having it made out to the current business WOULD help to document that this is a business laon, making it a business deduction
Customer: Our current business is a canadian controlled private corporation. The new business will be owned by we two, not our other corporation. The loan will be secured against the assets of the new corp.
NPVAdvisor : Then it should be in your names
NPVAdvisor : THe only reaons I asked was that if the other business is a going concern AND has a higher tax bracket, the interest deduction may have a bigger tax benefit
NPVAdvisor : just a thought
NPVAdvisor : But if you Are the ownners ... and this is your funding to buy the business ... It's all much cleaner that you have the loan
NPVAdvisor : It is still a business loan, therefore deductible
NPVAdvisor : amke sense?
NPVAdvisor : sorry for the typos
Customer: Yes thanks thats clear. I think I saw that you were in new york. No offence, but I need to know that you are sure about these things for Canada.
NPVAdvisor : YW, this is really all common law, when it comes to the ownership issues.
NPVAdvisor : and the tax issues are simply take the deduction where you have the highest rate if possible
Customer: Ok thanks I think thats it for now.
NPVAdvisor : but in ANY jurisdiction if you are the owners, having the loan in your name makes sense
NPVAdvisor : sure thing
NPVAdvisor : If this HAS helped, I would appreciate a feedback rating of 3 (OK) or better. That's the only way they will pay us here
NPVAdvisor : HOWEVER, if you need more on this, PLEASE COME BACK here, so you won't be charged for another question
NPVAdvisor : Thanks
NPVAdvisor : Lane
Customer: Ok thanks bye