Income Splitting For Business Owners

Income splitting can produce some pretty dramatic results.¬†Consider the case of a married, self-employed individual whose taxable income is in excess of $250,000. Assuming the spouse does not work, the tax bill would be $94,700 (in Ontario). If this couple were to split their income equally, their combined tax bill would drop to $77,700, a savings of $17,000. Now if…

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Shareholder Loans and Your Private Corporation

If you own your private corporation and borrow money you should consider the income tax consequences. The Income Tax Act¬†contains a series of rules that may have income tax consequences for the person receiving the loan from the company. In the context of this article, the term loan means any form of debt the shareholder or family member has to…

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