Articles

A registered education savings plan (RESP) is a contract between an individual (the subscriber) and a person or organization (the promoter). Under the contract, the subscriber names one or more children as beneficiaries and agrees to make contributions for them. The promoter agrees to pay Educational Assistance Payments (EAPs) to the beneficiaries at the point … Read more

Reduce Your Taxes by Splitting Pension Income Pensioners are able to split eligible pension income and splitting pension income between the higher and lower income spouse just might save your family some tax dollars. This is an important consideration for any retirement plan.  If you’re 65 or over, your eligible pension income includes lifetime annuity … Read more

Do you have excess funds in your corporation which you would like to withdraw but you want to avoid taking income with the related tax implications? Or do you have children who are also shareholders and you want to lend funds to them? Withdrawing the funds as a loan seems like a good strategy, but … Read more

What is the Small Business Deduction? Do you qualify? As an incorporated business, you could qualify for the small business deduction. Small businesses receive particularly favourable treatment under federal and provincial corporate tax rates. The federal rate amounts to only 11% on active business income up to $500,000. Section 125 of the Income Tax Act … Read more

As summer winds down and Canadian students start heading back to school, what better time than now to take a closer look at tax reduction opportunities for your children and grandchildren. In part 1 of  2-part series, we take a look at the tax options you have during your child’s first years.  RESPs For many, … Read more

In the final article of our three-part series exploring the three pillars of tax-efficient investing, we look at income conversion. Please be sure to check out the first two articles – income deferral and income splitting. Income Conversion With income conversion you can receive tax-advantaged rates in your non-registered portfolio. Because different types of income … Read more

In the second of a three-part series exploring the 3 pillars of tax-efficient investing, we look at the important role of income splitting in your overall tax plan. Previously, in part 1, we looked at income deferral. Income Splitting The basic principle behind income splitting is to reduce the overall family tax bill by shifting … Read more

With income tax season just around the corner, now is a perfect time to review your portfolio of investments to ensure you’re minimizing the income tax it triggers. In creating a tax-optimized plan, keep in mind the 3 key pillars of tax-efficient investing: Income Deferral Income Splitting Income Conversion In the first of a three-part … Read more

If you operate a small business, there are a number of things you can do today to make sure you save money on your income tax bill tomorrow. Here are the top 5 tips to get you started. 1. Keep accurate and reliable financial records One of the best ways to save money on your … Read more

Most taxpayers are just thankful to have the opportunity to shelter some income in an RRSP. They usually make their once-a-year installment immediately before the last minute deadline on March 1. Then they forget about it until the next year’s deadline rolls around. Of course, that is better than doing nothing, but an investment as important … Read more