that seems like a bad plan considering money always looses value (inflation) be better off to buy some gold bars with that cash. It will hold its value better over time and is non taxable in Canada
Creative tax planning?
- Thread starter skegpro
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that seems like a bad plan considering money always looses value (inflation) be better off to buy some gold bars with that cash. It will hold its value better over time and is non taxable in Canada
Yup it’s a liberals wet dream we all use their electronic money
yep. that's why they hate bitcoin, and I love it. digital money that they can't control
I had a buddy who used to get an invoice from his brother in laws company just before his year end to reduce corporate tax obligation. Then after the tax year the buddy would invoice the brother in laws company for the same amount. They would actually move the money between the companies just to complete the audit trail. It worked for a while until the brother in law skipped town and kept the money.
X-it
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Blow all the profits on hookers and blow and pay zero tax 
I hear a good way for little amounts that add up is buying things under the company that may not be entirely for company use. Depending on the company, if you have 2 personal vehicles, well maybe one becomes the companies and is now a 100% write off.
I would definitely make sure anything is on the up and up though, i've been audited as well as a ton of others I know in the last few years, it really seems like they are doing a lot more lately. They aren't going to be worried about the guy going to princess auto and buying $1000 worth of tools for himself that he claims are for his company, but if it's bigger stuff they will be.
I hear a good way for little amounts that add up is buying things under the company that may not be entirely for company use. Depending on the company, if you have 2 personal vehicles, well maybe one becomes the companies and is now a 100% write off.
I would definitely make sure anything is on the up and up though, i've been audited as well as a ton of others I know in the last few years, it really seems like they are doing a lot more lately. They aren't going to be worried about the guy going to princess auto and buying $1000 worth of tools for himself that he claims are for his company, but if it's bigger stuff they will be.
Make sure your tfsa is maxed out for starters and something to think about for RRSP is although it’s an advantage personally at tax time sooner or later you will pay taxes on it .Think of it this way - say you have 110k in RRSP deposits and it grows to 150k you are now paying on the 150 not the original 100
Bnorth
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This is true but if managed properly you should also be paying tax at 15-20% instead of at 40% as an example.
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skegpro
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So do you do a yearly dividend to yourself or a monthly?
Nice thing about salary is that it is a 100% write off to your cooperation.
Reading up on dividends, government sure likes to complicate things.
Gross up = wtf.
https://turbotax.intuit.ca/tips/the-federal-dividend-tax-credit-in-canada-332
X-it
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skegpro
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Company Christmas party in Hawaii?Blow all the profits on hookers and blow and pay zero tax
I hear a good way for little amounts that add up is buying things under the company that may not be entirely for company use. Depending on the company, if you have 2 personal vehicles, well maybe one becomes the companies and is now a 100% write off.
I would definitely make sure anything is on the up and up though, i've been audited as well as a ton of others I know in the last few years, it really seems like they are doing a lot more lately. They aren't going to be worried about the guy going to princess auto and buying $1000 worth of tools for himself that he claims are for his company, but if it's bigger stuff they will be.
Hookers get filed under client entertainment?
You can do it monthly or yearly. You also have to create and file T5 every year. But you have to do it from retained earnings so you have to complete at least one year end and have retained earning (profit after corporate taxes) in order to draw from before paying dividends.
Dividends are grossed up and so is the dividend tax credit so it evens out. It makes sense when you can divert it to a shareholder who doesn’t have much income. I don’t think you save much if you draw a salary and dividend yourself.
Dividends are not treated as earned income for RRSP contribution limits so they don’t increase the amount you can contribute like salary.
They only legit way to reduce taxes is to dividend, and pump all that into TFSA and RRSP as much as you are allowed. RRSP will save you tax money as well. Repeat every year as long as you can
Dividends are grossed up and so is the dividend tax credit so it evens out. It makes sense when you can divert it to a shareholder who doesn’t have much income. I don’t think you save much if you draw a salary and dividend yourself.
Dividends are not treated as earned income for RRSP contribution limits so they don’t increase the amount you can contribute like salary.
They only legit way to reduce taxes is to dividend, and pump all that into TFSA and RRSP as much as you are allowed. RRSP will save you tax money as well. Repeat every year as long as you can
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skegpro
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The real question is how do we buy sleds with pretax dollars lol.
gunner3006
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As much as taking your money and throwing it in a sock is a great idea, the inflation that Dan was talking about is something to consider. Gold is we’re it’s at. There is only so much of it and when the word WAR gets thrown around it only goes up.
Any accountant is going to try and get you to play on the safe side. No one wants to be audited. I guess it depends on your business. Tonnes of field operators are also farmers. There is a reason for this. Or maybe the farmer is also a feud operator. I use this example because up here that seems to be pretty common.
Start a foundation or a religion.
Any accountant is going to try and get you to play on the safe side. No one wants to be audited. I guess it depends on your business. Tonnes of field operators are also farmers. There is a reason for this. Or maybe the farmer is also a feud operator. I use this example because up here that seems to be pretty common.
Start a foundation or a religion.
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skegpro
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Like a colony.......
gunner3006
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Yesssssss
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