Creative tax planning?

[skegpro]

Anyone have any creative ideas for extracting value out of your own corporation or numbered company?

 

[SHREK1]

Best i have heard is get a green sticker for your licence plate, then life is easy

 

[jpmez69]

Anyone have any creative ideas for extracting value out of your own corporation or numbered company?

Lots of deductions to support your type of lifestyle. I haven't made a nickle in ten years. Most important though is having an offshore account that you can trust.

 

[TROLLCAT]

I have a off shore account .... its under a tarp sitting on a boat trailer in me back yard

 

[doorfx]

Coffee cans stuffed full with 100’s.

 

[kanedog]

Anyone have any creative ideas for extracting value out of your own corporation or numbered company?

Dip your fingers, not your elbows. -Kanedog

 

[Couch]

Dip your fingers, not your elbows. -Kanedog

Bang on ....get too greedy and you're going to get nailed.

 

[new_nytro]

Do u have a wife and kids? Make your wife a class B shareholder and your kids class C and D. You can then dividend from retained earnings to each of them about $30k per year with no tax assuming they have no other income. You remain as only class A shareholder with 99% of shares and 100% of the voting shares (only class A shares get voting rights). 100% legit and any lawyer or accountant will be okay with it. Dividends are done pro-rata by share class so you can dividend to each share class independently.

And if you and your wife split you retain 100% voting rights and 99% of the company so only you can decide who gets the dividends.

 

[skegpro]

Do u have a wife and kids? Make your wife a class B shareholder and your kids class C and D. You can then dividend from retained earnings to each of them about $30k per year with no tax assuming they have no other income. You remain as only class A shareholder with 99% of shares and 100% of the voting shares (only class A shares get voting rights). 100% legit and any lawyer or accountant will be okay with it. Dividends are done pro-rata by share class so you can dividend to each share class independently.

And if you and your wife split you retain 100% voting rights and 99% of the company so only you can decide who gets the dividends.

Good advice, and yes we have this strategy implemented already. Thx

 

[Bnorth]

Do u have a wife and kids? Make your wife a class B shareholder and your kids class C and D. You can then dividend from retained earnings to each of them about $30k per year with no tax assuming they have no other income. You remain as only class A shareholder with 99% of shares and 100% of the voting shares (only class A shares get voting rights). 100% legit and any lawyer or accountant will be okay with it. Dividends are done pro-rata by share class so you can dividend to each share class independently.

And if you and your wife split you retain 100% voting rights and 99% of the company so only you can decide who gets the dividends.

Only downside to this is the dividend comes from after tax corporate earnings. You reduce tax but don't totally avoid it and if you don't have the cash to pay out over $15k/yr to each and they have no other income then you are better to pay a wage as it is below minimum personal deduction so no corp tax and no personal tax. You would need to prove they provided value for their work though. Depending on their tax brackets and your corporate income tax rate wages may be better at higher amounts too.

 

[skegpro]

Only downside to this is the dividend comes from after tax corporate earnings. You reduce tax but don't totally avoid it and if you don't have the cash to pay out over $15k/yr to each and they have no other income then you are better to pay a wage as it is below minimum personal deduction so no corp tax and no personal tax. You would need to prove they provided value for their work though. Depending on their tax brackets and your corporate income tax rate wages may be better at higher amounts too.

Yeah they really have closed the way dividends used to be useful.

Basically from a personal income tax standpoint 150k of income and 150k of dividends yield the same personal tax bill as 300k of income.

But 300k of income is a 100% write off to the company.

Whereas $300k of dividends would have to be after cooperate tax?
Not fully sure I understand the purpose of a dividend anymore.......

 

[X-it]

lol ...hopefully your auditor is not reading this. I have spent countless hours on the phone with these guys their knowledge is lacking in some areas and getting worse.


https://ca.finance.yahoo.com/news/c...ts-a-d-for-wait-times-accuracy-193650248.html

 

[Ronaha]

Leave it all in tax free. Then be a crime lord it’s the best thing going in Canada right now.

 

[Bnorth]

Yeah they really have closed the way dividends used to be useful.

Basically from a personal income tax standpoint 150k of income and 150k of dividends yield the same personal tax bill as 300k of income.

But 300k of income is a 100% write off to the company.

Whereas $300k of dividends would have to be after cooperate tax?
Not fully sure I understand the purpose of a dividend anymore.......

Yeah basically. There is a tax credit on the dividend so you pay less tax but then tack on the corporate tax plus the decreased rate on income and you end up in pretty much the same place but don't gain RRSP room which you would with income and then use that to shield from tax.

 

[ZRrrr]

Or similarly make your wife a non share holding director of the company. Deductions for "directors meetings" etc.

Do u have a wife and kids? Make your wife a class B shareholder and your kids class C and D. You can then dividend from retained earnings to each of them about $30k per year with no tax assuming they have no other income. You remain as only class A shareholder with 99% of shares and 100% of the voting shares (only class A shares get voting rights). 100% legit and any lawyer or accountant will be okay with it. Dividends are done pro-rata by share class so you can dividend to each share class independently.

And if you and your wife split you retain 100% voting rights and 99% of the company so only you can decide who gets the dividends.

 

[lilduke]

Maybe you could pay yourself way less, then pull a big line of credit out against the farm, buy sleds and blow with that LOC money?

 

[kanedog]

Spend more time and effort making more money, pay yourself, pay your taxes, move on.

 

[lilduke]

Spend more time and effort making more money, pay yourself, pay your taxes, move on.

That could work too I guess haha

 

[X-it]

For those that like getting headaches. Don't expect any help from accountants or revenue canada...or Me. For discussion purposes only, scroll down and have fun.

https://www.canada.ca/en/revenue-ag...publications/notice269/natural-resources.html

 

[Ronaha]

A good accountant is just as important as a good doctor, they should be able to give you an amount you can extract tax free,then get a pvc pipe with end caps and bury it.