Split business income with family to save tax
From a tax perspective, small business owners are a lucky bunch. They have far more opportunities than salaried workers to split income with family members and cut taxes overall.
The obstacle for most families is the attribution rules, which discourage family members from transferring ownership of investments to a lower earner in order to pay less tax. The disincentive? Depending on the situa...Special trust offers key benefit to those 65+
If you are 65 or older, you're eligible for special tax treatment when setting up a trust for yourself (an alter ego trust), or for you and a spouse or common law partner of any age (a joint partner trust). Your investments or property can be "rolled over" to the trust without triggering immediate tax on built-up capital gains.
With rollover trusts, as they're sometimes called, you can still c...
Going back to school?
When people talk about returning to school, the Lifelong Learning Plan (LLP) is often mentioned as an easy financing solution. Upon hearing this, our team is inclined to raise a flag of caution. We prefer to discuss all available options in the context of the individual's situation.
The upside
The LLP lets you withdraw up to $10,000 a year from your RRSP to a maximum of $20,000 to finance t...
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