Shareholder Benefit (Section 15(1)) Calculator

The corporate condo the family uses every summer, the below-market rent on a company-owned property, these get taxed personally at full value, with no corporate deduction to offset it either.

Reading This Tool

How To Use This Calculator

Enter the fair market value of what the shareholder actually received, and whatever they paid back for it.

The gap between fair market value and what was actually paid is included in the shareholder's personal income at full value, no 50% inclusion rate the way a capital gain gets, and the corporation generally can't deduct the cost of providing it either.

Your Inputs

Type Of Benefit

Fair Market Value Of The Benefit $24,000

Amount Actually Paid By The Shareholder $6,000

Shareholder's Marginal Tax Rate 45.0%

This models a benefit conferred otherwise than through a genuine loan repayable on commercial terms, ordinary shareholder loans have their own separate rules under Section 15(2), covered by a dedicated tool.

Taxable Shareholder Benefit

Taxable Benefit Added To Personal Income

Personal Tax Cost

After-Tax Value Actually Received

Fair Market Value vs. Amount Paid

Unlike a dividend, a shareholder benefit carries no dividend tax credit to soften the blow, and the corporation typically cannot deduct the underlying cost either, a genuinely inefficient way to move value out of a corporation compared to a properly declared dividend or salary.

A more efficient way to actually pay yourself?

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