If you are looking for a simple and very effective way to shelter your investment income from income tax, consider a Tax-Free Savings Account (“TFSA”).
If you are a shareholder of a private corporation, a loan from your corporation can be an easy way to access cash for your personal needs, at least in the short term.
If for any two of three consecutive taxation years, your “net tax owing” is more than $3,000 (or $1,800 if you are a Quebec resident) after you file your personal income tax return, you can expect that the Canada Revenue Agency (“CRA”) will request that you pay your current year’s income tax in quarterly instalments.
A fourth strategy to deal with double taxation of your shares also requires the windup of your professional corporation within one year of your death to create a capital loss to offset your capital gain.
As an incorporated professional, your tax planning is a year-round process. Here are three tax strategies to help make your professional corporation tax-efficient:
One strategy to eliminate double taxation on the value of your professional corporation’s shares uses a windup of the corporation to create a capital loss that offsets your capital gain.
The Corporate Pipeline strategy, in summary, requires the creation of a new corporation at death to allow your heirs to extract your professional corporation’s assets on a tax-free basis.
When considering the purchase of a U.S. property as a rental investment or a vacation property, it is important to understand the U.S. tax implications as a foreign owner.
Your estate plan should include strategies to reduce Ontario Estate Administration Tax
As a health care professional, your personal income may be high enough to be taxed at Ontario’s highest personal marginal tax rates.