Business Income Splitting

When running your own business, there are a number of income splitting opportunities. Many of these options apply whether or not the business is incorporated. You can hire your family and pay them a salary.
If a corporation is a Small Business Company (SBC), your spouse and children can be shareholders and receive dividends, without concern […]

Enjoying the Ride

Chaos, a word with immense transformational power, a word that when given life can create fear and a word I do not like to associate with my home. Yet here it is, I am standing in it; it is knee-deep, contains the remains of a joy filled weekend, and it is mine to create order […]

Taming the Power Monster

It’s an evil spirit that you can’t fight with garlic or a silver cross.
Depending on the language you use, it translates differently. In Japanese it is “waiting appliance electricity.” In French it is “electricity used while an appliance is sleeping at its post.”
In plain English, “it” is vampire power and “it” is costing you a […]

Employee Tax Strategies

If employment earnings include commissions, you may be able to claim certain expenses for which you have not been reimbursed. Form T2200, Declaration of Employment Conditions, must be completed, signed by the employer and submitted with your tax return.
You should exercise caution before taking for granted that certain payments made by employers to employees are […]

The Value of Praise Revisited

As parents we often wish to support our children to achieve their maximum potential and one of the ways in which we do this is through the use of praise. When we see our children successfully complete a task there is often a feeling of joy and celebration at their mastering a new skill. In […]

Charitable Donations

When donations are made to registered charities, copies of the receipts must accompany personal tax returns. Corporations are required to list any donations with the charity registration number.
The Charity Tax Credit is based on 17% of the first $250 and 29% of the balance up to 20% of net income.
A charitable donation is a tax […]

Small Business Company Advantages

A Company qualifies as an SBC, Small Business Company, if at least 90% of its assets are used for active business purposes carried on primarily in Canada.
A CCPC, Canadian Controlled Private Company, holding only shares or debts of other companies may qualify, subject to those other companies are also being SBCs.
If corporations reinvest all their […]

Retirement Income Splitting

Income splitting is important for everyone, and especially so for senior citizens. If you receive Old Age Security (OAS) benefits, your entitlement is clawed back at the rate of 15% of your taxable income in excess of $53,215. Splitting income between seniors reduces the total amount clawed back as well as saving on their income […]