The Benefits Of A Holding Company

by Tax Guy - Burlington Accountant May 17, 2012

If you carry on a business as a corporation you may want to consider using a holding company to own your operating company. The holding company structure offers tax deferral opportunities and can help insulate your accumulated wealth from creditors or be used to avoid the U.S. estate tax. The Basics of A HoldCo In […]

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Income Splitting For Business Owners

by Tax Guy - Burlington Accountant May 10, 2012

Income splitting can produce some pretty dramatic results. Consider the case of a married, self-employed individual whose taxable income is in excess of $250,000. Assuming the spouse does not work, the tax bill would be $94,700 (in Ontario). If this couple were to split their income equally, their combined tax bill would drop to $77,700, […]

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What is Income Splitting?

by Tax Guy - Burlington Accountant May 10, 2012

The income tax you pay is based on a set of progressive tax rates. This means that the amount of income tax you pay increases as your taxable income increases. For example, in 2012 you would pay federal income tax of: 15% on the first $42,707 of income you earn, 22% on the next $42,707, […]

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Avoid Probate & Split Income Using Trusts

by Tax Guy - Burlington Accountant May 8, 2012

Income splitting and avoiding probate on death are possibly two to the most popular financial planning strategies in Canada. However, did you know that when you are planning your estate, that it is possible to avoid probate and provide your heirs a flexible income splitting opportunity using trusts? What Is A Trust? A trust is a […]

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Estate Planning 101 – Getting Organized

by Tax Guy - Burlington Accountant May 8, 2012

Developing an estate plan involves more than just a will and planning for income taxes at death. It is important to take an inventory of your personal assets and affairs before you prepare your will. The Estate Planning Team Depending on the complexity of your estate, you may need to engage a number of professionals […]

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Getting Ready For Your Taxes

by Tax Guy - Burlington Accountant March 19, 2012

Tax season is here and it’s time to start gathering all of your important documents to take to your tax accountant. As you begin gathering all of your tax slips, don’t forget to bring your receipts for these, often overlooked expenses: Income Splitting Although income splitting has been severely limited, there are a number of […]

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Line 300: Basic Personal Amount

by Tax Guy - Burlington Accountant March 14, 2012

The basic personal amount is a tax credit available to anyone who paid income tax during the tax year. The impact of this tax credit is that any income you earned up to the amount of the credit is essentially tax free. For the 2011 tax year, the federal Basic Personal Amount was $10,527 and […]

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Line 303: Spouse or Common Law Partner Tax Credit Amount

by Tax Guy - Burlington Accountant March 12, 2012

If you were married or in a common law relationship during the 2011 tax year, you can claim the Spouse or Common Law Partner Amount if your spouses’ income was less than $10,527. Any net income your spouse reported on Line 236 of their tax return will reduce the credit amount dollar-for-dollar and fully eliminates […]

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