Hello Mr. Godbout,
I need to borrow funds from my company temporarily to make a real estate purchase.
How does it works ?
Hello Mr. Alexandre XXX,
thank you for your email.
Congratulations on your real estate project!
You can borrow money from your company for a maximum period of no more than two tax years ends from your company. Your company tax year ends on December 31st. If you borrow in 2019, the loan must be repaid by December 31, 2020 so the loan would not exceed two year ends.
You will have to pay a minimum interest to your company to avoid a taxable benefit on low interest rate or no interest rate. The minimum interest rate is currently 2% per annum. Interest must be paid to the company before January 30, otherwise it will be considered a taxable benefit to the shareholder.