[Geof]

Meaning, if I buy a 100,000 machine, would I have to pay taxes on the money used to buy the machine? How about tooling, is that considered and expense?

There are differences between Canada and the US but I they they are related more to how fast you can write things off.

With machines you can only deduct a portion of the purchase price per year; here it is 15% in the first year and 30% per year after that, there I think the percentages are higher. Machines are considered Capital purchase; they have a continuing value.

With tooling, which is a consumable item that does not have a continuing value, normally the fuul cost is deductable in the year of purchase.

You really do need an accountant who does not baffle you with bovine waste products.

And if you have recently split up a partnership a chat with a lawyer may be a good idea; you want to be sure the partnership is really and truly split.

And it does cost an arm and a leg but not taking that hit now could mean you lose more in the future. Pessimistic advice but I know people who have become embroiled in nasty money wasting disputes because the i's where not dotted and the t's crossed correctly.