Tax Help

Read more about the article Should You Claim CCA On Your Rental Property?
Business / Investing / Real Estate

Should You Claim CCA On Your Rental Property?

The Income Tax Act allows you to deduct certain expenses directly related to your rental property such as property taxes, interest, insurance, accounting fees, and advertising. While you can’t deduct the full cost of the property itself, you are permitted to claim an amount every year as “capital cost allowance” (CCA). CCA appears to be an attractive way to reduce their…

Comments Off on Should You Claim CCA On Your Rental Property?
June 6, 2012
Read more about the article Borrowing From Your Corporation
Business / Corporations

Borrowing From Your Corporation

If you have a business corporation, your income will normally consist of salary or dividends. However, given the right circumstances, your corporation may be able to lend you money tax-free. There are some things that you need to be aware of. First, if the company extends you a low or no-interest loan, there will be a taxable benefit added to…

Comments Off on Borrowing From Your Corporation
May 30, 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…

Comments Off on The Benefits Of A Holding Company
May 25, 2012
Read more about the article Income Splitting For Business Owners
Business / Corporations / Tax Planning

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…

Comments Off on Income Splitting For Business Owners
May 10, 2012
Read more about the article Understanding Income Splitting
By Seven_Null7 via Flickr
Income Splitting

Understanding Income Splitting

The income tax you pay is based on a set of progressive tax rates. This means that the amount of income tax you pay increases as your taxable income increases. For example, in 2012 you would pay federal income tax of: 15% on the first $42,707 of income you earn, 22% on the next $42,707, 26% on the next $46,992,…

Comments Off on Understanding Income Splitting
May 10, 2012
Read more about the article The Income Splitting Rules
Tax Planning

The Income Splitting Rules

Accountants often call the income splitting rules attribution rules. The term attribution simply means to attribute income back to the original person and effectively stop any attempt to income split. Who Do The Income Splitting Rules Apply To? The rules that are designed to prevent income splitting apply when you attempt to shift income to any one of the following…

Comments Off on The Income Splitting Rules
February 12, 2012