Income Splitting

Read more about the article The Benefits And Dangers Of Joint Accounts
Estate Planning / Income Splitting / Wills & Estates

The Benefits And Dangers Of Joint Accounts

This articles discusses the general issues around joint accounts (in all provinces except Quebec). Why Have Joint Ownership? Many people set-up joint accounts for a variety of reasons. For a married or common law couple, it could be for the day-to-day management of expenses. The account provides all parties equal access to the funds in the account to pay bills and manage…

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July 22, 2015
Income Splitting / Tax Planning

Income Splitting Expanded for 2014

The government recently announced new legislation that will expand income splitting to families with children. Back in 2007, the government announced pension income splitting that allowed those who have certain pension income to split up to half of the pension income with their spouse or common law partner. On October 31, 2014, the government announced the new Family Tax Cut as well…

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November 14, 2014
Read more about the article 12 Income Splitting Opportunities
Tax Planning

12 Income Splitting Opportunities

Many of the income splitting opportunities have been curtailed by a set of rules known as the attribution rules. When opportunities are available, they can be complex, expensive, and difficult to maintain. However, if you and other family members are in very different tax brackets, the benefits may be substantial. Record Keeping Proper records are a must when establishing an income splitting arrangement.…

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February 3, 2013
Read more about the article Tax Tip: Incorporate & Split Income
Tax Tips

Tax Tip: Incorporate & Split Income

Here is a proven strategy to reduce your overall tax bill by incorporating your business. The top personal tax rate in Ontario is 45% on income over $132,000 and 48% on income over $500,000. For small business corporation, the tax rate is 15.5% and the personal rate for dividends is quite attractive. By incorporating your business and issuing shares to yourself and…

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January 26, 2013
Read more about the article Due Dates for Corporate Returns & Taxes
Business

Due Dates for Corporate Returns & Taxes

A corporation that is resident in Canada, carried on a business in Canada, has a taxable capital gain, or sold taxable Canadian property is required to file a T2 income tax return even if no tax is payable. Knowing when the return is due, and more importantly when the tax is payable is important to avoid costly interest and penalties. Be aware that…

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August 7, 2012
Read more about the article The Benefits Of A Holding Company
Business / Corporations / Tax Planning

The Benefits Of A Holding Company

If you carry on a business as a corporation you may want to consider using a holding company to own your operating company. The holding company structure offers tax deferral opportunities and can help insulate your accumulated wealth from creditors or be used to avoid the U.S. estate tax. The Basics of A HoldCo In its basic format, a holding…

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May 25, 2012