The Shareholder Loan — What It Is and How Not to Get Burned

If you're an incorporated Canadian business owner, chances are you have a shareholder loan account — even if you've never looked at it. It's one of the most important accounts on your balance sheet, and if it's not managed correctly, it can result in a significant and unexpected tax bill. In this episode I explain exactly how shareholder loans work and how to stay on the right side of the rules.

In this episode:

• What a shareholder loan account is and how it works
• The two directions — lending to the corporation vs borrowing from it
• Why borrowing from your corporation can trigger tax consequences
• The one fiscal year repayment rule — with a real numbers example
• The series of loans trap CRA watches for ...