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 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.
If you, your spouse (which includes a common-law partner), or someone who lives with you is age 65 or older in 2023, here are some special tax tips that may apply to your situation.