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Hi,
Is Gordon Bizar still around?
Have you heard of a technique where one purchases a corporation by having that corporation issue redeemable preferred shares to the “vendors” in exchange for their selling their shares to the “purchaser” for $1 and then having the corporation redeem the preferred shares using working capital or funds loaned in by the purchaser? Seems to me that the proceeds received by the vendor would be taxable and thereby deprive him of the $500,000 exemption on sale of control of a CCPC and that during the transaction the “vendor” would have NO security as against the “purchaser” bleeding the corp. dry and moving on.
How to buy a business with no money and no down payment either!
A friend of mine has been approached with this scheme (or scam) to buy his successful plumbing contracting corp.
Seems a tad risky
for the vendor to me.
Cheers,
XXX
No tyranny is so irksome as petty tyranny: the
officious
demands of policemen, government clerks, and electromechanical gadgets.
david ingram replies:
(For those who do not know Gordon Bizar has a nothing down "buy a business" seminar which is intriguing and which I taught at one time back in the 80's. Great for the buyer, usually bad for the seller.)(The sender of this email actually taught it as well.)
Gordon Bizar is alive and kicking at http://www.bizarfinancing.com/?nav=home
Seller should NOT sell under terms you suggest but you knew that.
david
This started out getting the following message until it was recognized as having come from an old best friend whom I have not seen in person for about 10 or 12 years or more.
_______________________________________________________________________________
david ingram wrote:
I am sorry that I cannot reply to your question at the moment because you do not show as a client. If I am incorrect and you are a client with a new email address, etc., please resend your question or enquiry with your name and the words "PAYING CUSTOMER" in the subject matter. That does NOT mean I am going to charge automatically for the question. A simple yes or no question is never charged for. However, it does identify your question as being a priority and should stop it from being spammed
At the moment, I am limiting my free replies to two per day (I get up to 50 questions) from non-clients. I am just too busy to answer many questions and am limiting myself to 2 a day except for my regular paying customers whom I do my dammedest to answer the same day. And, if I have already answered one of yours free in the last six months, it is unlikely that the system will let you through with another free one now.
I am, however, adding your name to our Q & A list and another question may answer yours. AND, I have answered over 7,500 questions at http://www2.jurock.com/askexpert/expert.asp?aid=121&cid=63 or www.centa.com (see the archives) and you should be able to find your answer by going there or more specifically, to http://www.centa.com/search.htm
However, if you can not find your answer,
answers to this and other similar questions can be obtained free on Air on the last Sunday morning of each month (Sunday Feb 25, Mar 25, April 29, May 27, June 24 and July 24 are next).
On the last Sunday at 9:00 AM on 600AM in Vancouver, david ingram will be a guest on Fred Snyder of Dundee Wealth Management's Radio Program, "It's YOUR Money". If you are not in the Vancouver Area, you can still hear it live (or in archives for four weeks) at www.600am.com.
Calls to the
show can be made to
(604) 280-0600 - The long distance line is free throughout BC only at
(866) 778-0600.
Callers to the
Show can also
come out on Thursday night to one of our free seminars. Each one of the
2 1/2 hour seminars devotes at least 45 minutes to mortgaging and
making all interest deductible
Every Thursday Evening, Fred Snyder of Dundee Wealth Management conducts one of 17 different financial seminars at his office
Time: 7:00 to 9:30 PM
Date: Every Thursday evening
Place 1764 West Seventh
Vancouver (corner of Burrard)
Phone (604) 731-8900 to register and there is usually a Noon hour seminar as well.
No cost - no obligation
Topics always cover mortgage interest as a deduction
other topics - getting the mortgage, estate planning, critical care insurance, income taxation, differences between stocks and bonds, and usually the most innovative HELOC mortgage offered in Canada from Manulife Bank as presented by Stuart Rodger of Manulife (604) 351-6133,
Every Thursday Evening, Fred Snyder of Dundee Wealth Management conducts one of 17 different financial seminars at his office
Time: 7:00 to 9:30 PM
Date: Every Thursday evening
Place 1764 West Seventh
Vancouver (corner of Burrard)
Phone (604) 731-8900 to register and there is usually a Noon hour seminar as well.
No cost - no obligation
Topics always cover mortgage interest as a deduction
other topics - getting the mortgage, estate planning, critical care insurance, income taxation, differences between stocks and bonds, and usually the most innovative HELOC mortgage offered in Canada from Manulife Bank as presented by Stuart Rodger of Manulife (604) 351-6133,
Those on
Vancouver Island can attend
Ralph Hahmann's Tuesday Evening Seminars on McKenzie Avenue in
Victoria. (250) 472-0700.Ralph is also with Dundee Wealth Management
and is a specialist in Pension Payouts and the co-author of the best
selling "the Pension Paradigm:.
---------------------------------------------------------------------------------------------------------------
David Ingram's US / Canada Services
US / Canada / Mexico tax, Immigration and working
Visa Specialists
US / Canada Real Estate Specialists
My Home office is at:
4466 Prospect Road
North Vancouver, BC, CANADA, V7N 3L7
Cell (604) 657-8451 -
(604) 980-0321 Fax (604) 980-0325
Calls welcomed from 10 AM to 9 PM 7 days a week
Vancouver (LA) time - (please do not fax or phone outside of those
hours as this is a home office)
email to [email protected]
Disclaimer:
This question has been answered without detailed information or
consultation and is to be regarded only as general comment. Nothing
in this message is or should be construed as advice in any particular
circumstances. No contract exists between the reader and the author and
any and all non-contractual duties are expressly denied. All readers
should obtain formal advice from a competent and
appropriately qualified legal practitioner or tax specialist for expert
help, assistance, preparation, or consultation in connection with
personal or business affairs such as at www.centa.com. If you forward this message, this disclaimer must be
included."
Be ALERT, the world needs more "lerts"
David Ingram
gives expert income tax & immigration help to non-resident
Americans & Canadians from New York to California to Mexico
family, estate, income trust trusts Cross border, dual citizen - out of
country investments are all handled with competence & authority.
Phone consultations are $400 for 15
minutes to 50 minutes (professional hour). Please note that GST is
added if product remains in Canada or a phone consultation is in Canada.
This is not intended to be definitive
but in general I am quoting $800 to $2,800 for a dual country tax
return.
$800 would be one T4 slip one W2 slip
one or two interest slips and you lived in one country only - no self
employment or rentals or capital gains - you did not move into or out
of the country in this year.
$1,000 would be the same with one
rental
$1,200 would be the same with one
business no rental
$1,200 would be the minimum with a
move in or out of the country. These are complicated because of the
back and forth foreign tax credits. - The IRS says a foreign tax credit
takes 1 hour and 53 minutes.
$1,500 would be the minimum with a
rental or two in the country you do not live in or a rental and a
business and foreign tax credits no move in or out
$1,600 would be for income from two countries for two
people
$2,800 would be all of the above and
you moved in and out of the country.
This is just a guideline for US /
Canadian returns
We will still prepare Canadian only
(lives in Canada, no US connection period) with two or three slips and
no capital gains, etc. for $150.00 up.
With a Rental for $350
A Business for $350 - Rental and
business likely $450
And an American only (lives in the US
with no Canadian income or filing period) with about the same things in
the same range with a little bit more if there is a state return.
Moving in or out of the country or
part year earnings in the US will ALWAYS be $800 and up.
TDF 90-22.1 forms are $50 for the
first and $25.00 each after that when part of a tax return.
8891 forms are generally $50.00 to
$100.00 each.
18 RRSPs would be $900.00 - (maybe
amalgamate a couple)
Capital gains *sales) are likely
$50.00 for the first and $20.00 each after that.
Just a guideline not etched in
stone.
