Without careful planning and a corporate specialist, the corporate renovation you’re planning might well drain your company’s finances. Most companies don’t realize it, but there are several tax deductions and tax credits by which they can benefit while undergoing a corporate renovation. With D.J. McGauley & Associates and the appropriate tax deductions, the costs of your office renovation will be much lower than usual.
One important deduction is in Line 8960 for expenses accrued in maintenance and repairs. This will allow you to deduct the cost of labor, maintenance and repairs for any maintenance work and minor repairs for the property you use to earn income. This applies to parts of your office that have not undergone major repairs but have nonetheless undergone maintenance and improvements. Excepted from this deduction is the value of your own labor and costs of repairs that are capital in nature, which are deductible in the next section.
Undergoing a corporate renovation will inevitably mean the acquisition of new capital assets, which may qualify as a deduction under capital cost allowance. This deduction applies to furniture, equipment, and technologies acquired for the use of business or professional activities. While you cannot deduct the entire cost of the property right away, you can deduct its depreciable cost over time depending on its estimated lifetime.
While undergoing a renovation, you might make use of supplies that would otherwise not qualify under the two preceding sections. This is where you can apply for a deduction under this section. Here, you can deduct items that the business used indirectly in its business, allowing certain refurbishments done to your workspace that are not directly related to your business goals to be deductible.
A renovation will require external professional advice or services that will entail consulting fees. For such expenses, you can apply for a deduction under this section. With this deduction, you can put to rest any fears that consultation with specialists will only increase the costs of your renovation.
If you plan on leaving the commercial building for a period of at least 90 consecutive days, you may qualify for a rebate of the tax you have already paid.
Make sure to tune in next week as we discuss Tax Deductions and Credits in Corporate Relocation in Canada.
Last week we began the discussion of renovation vs. relocation during the corporate expansion process. There are several questions that need to be asked and subsequently answered before deciding whether to relocate to a new office or to renovate your current workspace. To simplify the decision-making process, D.J. McGauley & Associates has prepared a checklist of questions that you should consider. The list continues below…
4. How will the expansion affect your bottom line?
Whether you relocate or renovate, you should first calculate the monthly costs it will entail. Will relocating increase your basic costs? Will renovating be more costly for your business in the long run, in terms of maintenance, because of the increase in lease?
Carefully evaluate which of the two options will increase the efficiency of the employees, offer better access to workers, and improve the visibility of your business among several other factors. It all boils down to how it will affect your bottom line, given the interplay of expenses and projected earnings.
5. Do you want to tweak or complete re-brand your company image?
The avenue of corporate expansion you choose will ideally affect your customers and clients as much as it will affect your employees. Many businesses have strategically chosen corporate relocation to jump start their company’s image. This relocation is just one of the many changes they undertook—along with offering new products and services, changing their vision, and sometimes, even changing their names! If you want a fresh start in the truest sense, then a corporate relocation may be exactly what you need.
On the other hand, some companies are reluctant to take such a measure but at the same time express a desire to contemporize their workplace and improve its layout, energy efficiency, and technology. This is where renovation is a more viable option.
6. Do you want no disruption to your operations?
Whether you choose renovation or relocation for your corporate expansion, you can’t lose sight of your business goals—the achievement of which is the entire reason why you’re expanding in the first place. For this reason, you need a corporate relocation and renovations specialist that will ensure that the expansion will go smoothly and will take into account the achievement of all your organizational goals. D.J. McGaulay & Associates will do this, and more; it will also help you understand your new facilities better and provide the assistance needed for post-relocation or renovation.
Many people do not realize the full scope of a corporate relocation specialist’s abilities. Did you know that corporate relocation companies will expertly handle a lot more than office moving? For example, D.J. McGauley & Associates will help not only relocate corporate space but also renovate and/or expand your existing corporate location.
Renovation services you can expect from the consultants at D.J McGauley & Associates include:
- Practical, cost effective and attractive design options that maximize the use of your current space.
- Furniture solutions and options that fit your needs and budget.
- Modernization and updates that fit your corporate image, client base and employee needs.
- Maximizing light and air quality while promoting worker health and ergonomics
If your company is considering renovating or expanding your existing office space, make the consulting team at D.J. McGauley & Associates the first call you make. We have the experience and the know-how to make your corporate renovation in Toronto or surrounding area a glitch-free success.
For more information about why you should call a corporate relocations specialist, read our last blog post, Does the Success of Your Corporate Relocation Rely on Who You Know?