--- title: "Year-End Tax Checklist for Incorporated Owners | EverStone" url: https://www.everstonecpa.com/blog/year-end-tax-checklist-incorporated-owners description: "A year-end tax checklist for incorporated owners: salary, dividends, bonuses, shareholder loans and capital purchases before year end. Use the checklist." type: guide updated: 2026-10-05 summary: "The year-end tax checklist for incorporated owners centres on decisions best made before your fiscal year-end , not after. Set your salary-versus-dividend mix early because it affects RRSP room and CPP, clear or document shareholder loans, and time capital purchases to claim depreciation where it helps. Accrue any bonuses before year-end (paid within 180 days) if you want the deduction now." faq_count: 7 publisher: EverStone CPA Inc., a Chartered Professional Accountant firm registered with CPA British Columbia and CPA Alberta service_area: British Columbia, Alberta, Ontario and Manitoba language: en-CA contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online --- [Home](https://www.everstonecpa.com/) [Blog](https://www.everstonecpa.com/blog) Year-End Tax Checklist for Incorporated Business Owners Tax # Year-end tax checklist *for incorporated business owners* By EverStone CPA · Updated August 2026 · 8 min read **Quick answer:** The year-end tax checklist for incorporated owners centres on decisions best made before your [fiscal year-end](https://www.everstonecpa.com/glossary#fiscal-year-end), not after. Set your salary-versus-dividend mix early because it affects RRSP room and CPP, clear or document shareholder loans, and time capital purchases to claim depreciation where it helps. Accrue any bonuses before year-end (paid within 180 days) if you want the deduction now. **Setting your pay before the year-end?** Enter your company’s profit in [our 2026 pay planner](https://www.everstonecpa.com/salary-vs-dividends-calculator): it works out corporate tax, CPP and personal tax at every salary level for 2026 and shows the split that leaves you the most. These are decisions to make before year-end, not after. **Rather have a CPA handle this?** A CPA at EverStone replies with a straight answer and a fixed fee for your situation. [Get My Fixed Quote →](https://www.everstonecpa.com/book-online?service=planning#enquiry-form) ## Key takeaways - Decide your salary-versus-dividend mix before year-end, not after — it affects RRSP room and CPP. - Clear or document shareholder loans to avoid having them taxed in your hands. - Time capital purchases to claim depreciation in the current year where it helps. - Accrue bonuses before year-end if you want the deduction now (pay within 180 days). Most of the tax you can save on a corporate return is decided **before** your year-end date, not when you file six months later. By the time the return is prepared, the levers are locked. This checklist covers the moves worth making while you still can. Work out your own date with the [corporate tax date calculator](https://www.everstonecpa.com/t2-deadline#deadline-checker). **On this page**[1. Decide how you’ll pay yourself](#s-1-decide-how-you-ll-pay-yourself)[2. Deal with shareholder loans](#s-2-deal-with-shareholder-loans)[3. Time bonuses](#s-3-time-bonuses)[4. Time capital purchases](#s-4-time-capital-purchases)[5. Review GST/HST, payroll and books](#s-5-review-gst-hst-payroll-and-books)[6. Look ahead, not just back](#s-6-look-ahead-not-just-back)[The bottom line](#s-the-bottom-line)[Frequently asked questions](#s-frequently-asked-questions)[Get your year-end done right](#s-get-your-year-end-done-right) ## 1. Decide how an incorporated owner pays themselves Your **salary-versus-dividend mix** is the biggest year-end decision. Salary is deductible to the company and builds RRSP room and CPP; dividends are simpler and avoid CPP but build no RRSP room. The right blend depends on your income needs, the year’s brackets and whether profit is above or below the small business limit. Model it with our [salary vs dividends calculator](https://www.everstonecpa.com/salary-vs-dividends-calculator) before you commit. **Incorporated, or about to be?** We prepare the T2 and year-end statements at a fixed fee quoted in writing before any work starts, and plan how you pay yourself. See [our corporate tax work](https://www.everstonecpa.com/tax-services), or [get a year-end quote](https://www.everstonecpa.com/book-online?service=planning#enquiry-form). [Get My Fixed Quote](https://www.everstonecpa.com/book-online?service=planning#enquiry-form) ## 2. Deal with shareholder loans If you’ve drawn money from the company that isn’t salary or a dividend, it’s sitting in a **[shareholder loan](https://www.everstonecpa.com/blog/shareholder-loans-canada-taking-money-out-of-corporation)**. Left unaddressed past the required window, the CRA can tax the entire balance in your personal hands. Review it before year-end and either repay it, or convert it to salary or a dividend deliberately — on your terms, not theirs. ## 3. Time bonuses Accruing a **bonus** before year-end lets the corporation deduct it in the current year, even if it’s paid up to **180 days** later. That can shift income into a more favourable year and create RRSP room for you. It requires payroll withholding when paid, so it needs to be planned, not improvised. Our guide to [the 180-day rule for accrued bonuses](https://www.everstonecpa.com/blog/accrued-bonus-180-day-rule-canada) covers the resolution and payment evidence to keep. If you hold stock, the same planning window applies to your [year-end inventory count](https://www.everstonecpa.com/blog/year-end-inventory-count-canada) and to any [prepaid expenses that have to be deferred](https://www.everstonecpa.com/blog/prepaid-expenses-year-end-canada). Not sure how this applies to you? Every corporation’s situation is different. Send an enquiry to a CPA and get a straight answer, plus a fixed quote before any work starts. [Send an Enquiry →](https://www.everstonecpa.com/book-online?service=planning#enquiry-form) [See fixed fees](https://www.everstonecpa.com/pricing) ## 4. Time capital purchases If you’re planning to buy equipment, a vehicle or technology, **when** you buy affects your deduction. Assets available for use before year-end can start claiming depreciation ([capital cost allowance](https://www.everstonecpa.com/glossary#cca)) this year. If a purchase is coming anyway and a deduction helps this year, timing it before the date can make sense, but don’t buy things purely for a write-off. **Rule of thumb:** never spend a dollar to save 27 cents of tax. Capital timing is about accelerating deductions on purchases you were already going to make. ## 5. Review GST/HST, payroll and books Make sure your GST/HST and payroll accounts are reconciled and filed, and that your bookkeeping is clean and up to date. A reconciled set of books is faster (and cheaper) to file from, and it’s the only way the moves above can be calculated accurately. This is where ongoing [corporate tax support](https://www.everstonecpa.com/tax-services) pays off. ## 6. Look ahead to next year’s tax, not just back Year-end is also the moment to forecast next year’s tax, right-size your instalments, and decide whether [retained earnings](https://www.everstonecpa.com/glossary#retained) should be invested, distributed or held. That forward view is exactly what a [fractional CFO](https://www.everstonecpa.com/contract-cfo) brings to a growing business. ## The bottom line The corporate return you file is mostly a record of decisions you already made. Spend an hour on this checklist before your year-end date and you keep the decisions, and the tax savings — in your own hands. Sources - [Canada Revenue Agency — Corporation income tax](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/corporations.html) - [Canada Revenue Agency — Payroll](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll.html) - [Canada Revenue Agency — GST/HST](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses.html) This article is general information for Canadian business owners and is current as of July 2026. It is not tax, legal or accounting advice, and it does not create a client relationship. Tax rules change and your situation is unique, so please [speak with a CPA](https://www.everstonecpa.com/book-online?service=planning#enquiry-form) before acting on anything here. If charitable giving is part of the year, decide the route before the cheque is written — see [the personal credit versus the corporate deduction](https://www.everstonecpa.com/blog/charitable-donations-personal-vs-corporate). Two decisions sit inside that checklist and deserve their own reading: [whether to take a bonus or a dividend before the year closes](https://www.everstonecpa.com/blog/bonus-vs-dividend-year-end-canada), and, if a spouse is involved in the business, [how to pay a spouse a salary defensibly](https://www.everstonecpa.com/blog/paying-your-spouse-a-salary-canada). If the resulting balance is more than you can pay, [CRA payment arrangements](https://www.everstonecpa.com/blog/cra-payment-arrangements-cant-pay-tax-canada) sets out the options before interest compounds. Year-end is also the natural time to confirm how your corporation should be paying and reporting your [professional dues and subscriptions](https://www.everstonecpa.com/blog/professional-dues-subscriptions-deductible). About this article **EverStone CPA** Prepared and reviewed by a Chartered Professional Accountant at EverStone CPA, a CPA firm working with small and midsized businesses in BC, Alberta, Ontario and Manitoba. [About the firm →](https://www.everstonecpa.com/about) · [Send an enquiry →](https://www.everstonecpa.com/book-online?service=planning#enquiry-form) We run this year-end checklist with incorporated owners across BC, including [Vancouver](https://www.everstonecpa.com/accountant-vancouver). Work back from the dates: [when the return and balance are due](https://www.everstonecpa.com/t2-deadline). ### Related articles [Fractional CFO support →](https://www.everstonecpa.com/contract-cfo) [run the numbers on how you pay yourself](https://www.everstonecpa.com/salary-vs-dividends-calculator) [Corporate tax services →](https://www.everstonecpa.com/tax-services) [Home-office expenses for owners →](https://www.everstonecpa.com/blog/home-office-expenses-incorporated-business-canada) [Shareholder loan balance tracker →](https://www.everstonecpa.com/shareholder-loan-tracker) [Free year-end document checklist →](https://www.everstonecpa.com/year-end-document-checklist)[January is when February is decided →](https://www.everstonecpa.com/january-owner-checklist)[The Year-End Playbook: year-end handled in five short emails →](https://www.everstonecpa.com/year-end-playbook)[The Half-Year Rule for CCA: How First-Year Claims Work →](https://www.everstonecpa.com/blog/half-year-rule-cca-canada)[Buying equipment in Mission: the purchase date, CCA and the timing →](https://www.everstonecpa.com/blog/mission-equipment-purchase-cca-timing)[Incorporated professionals in Langley: PSB risk, the home office and paying yourself →](https://www.everstonecpa.com/blog/langley-incorporated-professionals-psb-home-office-pay)[Surrey construction: T5018, holdbacks and WorkSafeBC in one year end →](https://www.everstonecpa.com/blog/surrey-construction-t5018-holdbacks-worksafebc-year-end)[Abbotsford agri-food processors: what the year end has to show →](https://www.everstonecpa.com/blog/abbotsford-agri-food-processor-year-end) FAQ ## Frequently asked questions **What should I do before my corporate year-end?** The high-value moves are: decide your salary-versus-dividend mix, deal with any shareholder loan balances, time capital purchases and bonuses, review your GST/HST and payroll accounts, and make sure your books are reconciled. Most of these can only be optimized before the year-end date passes. **Should I pay myself a bonus or a dividend at year-end?** It depends on your goals. A bonus is deductible to the company and creates RRSP room and CPP for you, but requires payroll and must be paid within 180 days to claim the deduction. A dividend is simpler and avoids CPP but builds no RRSP room. Most owners use a planned mix. **What is a shareholder loan and why does it matter at year-end?** A shareholder loan is money you’ve drawn from your corporation that isn’t salary or a dividend. If it isn’t repaid or properly documented within the required time, the CRA can tax the full amount in your personal hands. Reviewing and clearing these before year-end avoids a nasty surprise. **Can I still reduce this year’s corporate tax after year-end?** Some things, yes — RRSP contributions and certain elections have later deadlines — but most levers (bonuses, capital purchases, remuneration timing) must be in place before your fiscal year-end. That’s why [year-end planning](https://www.everstonecpa.com/tax-planning-services-canada) happens before the date, not at filing time. **Can I still change my salary and dividend mix after year-end?** Only partly, and not the parts that matter most. A bonus has to be accrued in the year’s books, so it cannot be invented once the return is being prepared, and a shareholder loan balance is measured as it stood at the year-end date. Dividends can be declared later, but the planning value comes from deciding before the date. **Should I buy equipment before year-end just to reduce tax?** Only if you were buying it anyway. An asset available for use before year-end can start claiming capital cost allowance a full year earlier, which is a real timing benefit on a purchase you already needed. But the deduction is only a fraction of the cost, so accelerating a planned purchase makes sense while inventing one to save tax does not. **What should be reconciled before the year closes?** Your GST/HST and payroll accounts, and your bookkeeping generally. Reconciled books are faster and cheaper to file from, and more importantly they are the only way the year-end decisions can be calculated accurately. Modelling a bonus or a shareholder loan balance from incomplete books produces a confident-looking decision built on the wrong numbers. ## Get your year-end done right We handle remuneration planning and year-end filing so nothing slips. Send an enquiry before your year-end. [Get My Fixed Quote](https://www.everstonecpa.com/book-online?service=planning#enquiry-form)[Book a Paid Advice Call](https://www.everstonecpa.com/advice-call) [← The year-end inventory count: what CRA expects to see](https://www.everstonecpa.com/blog/year-end-inventory-count-canada) [Zero-rated vs exempt: the GST/HST difference that matters →](https://www.everstonecpa.com/blog/zero-rated-vs-exempt-supplies-gst-hst-canada) More on this subject: [our corporate tax hub](https://www.everstonecpa.com/corporate-tax-hub). More on this subject: [everything due at a corporate year-end](https://www.everstonecpa.com/year-end-hub). More on this subject: [everything for a new business](https://www.everstonecpa.com/starting-a-business-hub). ## Have a question about this? Ask it free through [the quick-question form](https://www.everstonecpa.com/quick-question) and a CPA replies by email within one business day. For something that needs a proper look, a one-off **Advice Call** is a paid 45-minute session with a Chartered Professional Accountant: $225 plus GST, booked by email or phone with a secure payment link. It is credited against your first invoice if you become a client within 60 days. Looking for an accountant to take this on rather than an answer? [Send an enquiry](https://www.everstonecpa.com/book-online?service=planning#enquiry-form). [Ask a Free Question](https://www.everstonecpa.com/quick-question) [Book a Paid Advice Call](https://www.everstonecpa.com/advice-call) Email info@everstonecpa.com ★★★★★ “Personal. Professional. Responsive. Plus he saved me a bundle!” Corrin Skalbeck · Google Local Guide --- Source: https://www.everstonecpa.com/blog/year-end-tax-checklist-incorporated-owners Prices: https://www.everstonecpa.com/pricing · Contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online