Corporation tax laws on passive income

[That.Guy.S30]

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I guess good things doesn't come to those who wait then. Should had blew my corporate savings on some fancy cars and high maintenance women should had yolo'ed

You still can! Write it off as dining and entertainment.

[phreezee]

Just watched the live voting for the motion to extend the consultation period. 89 for and 199 against. Trudeau was the first to stand up to vote against. Wanted to punch him in his smug face through the screen.

[TomcoPDR]

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You still can! Write it off as dining and entertainment.

True, gf as salaried secretary? Guess till it doesn't make economical sense, then lay her off and she goes work for somebody else.

[HiTempguy1]

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True, gf as salaried secretary? Guess till it doesn't make economical sense, then lay her off and she goes work for somebody else.

No, lay her off, then get her to collect EI

[max_boost]

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I guess good things doesn't come to those who wait then. Should had blew my corporate savings on some fancy cars and high maintenance women should had yolo'ed

good things that come to those who wait are the leftovers by those who got there first.

with that said, can always yolo.

go spend some money, baller.

[JudasJimmy]

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What the fuck!!!! This would totally screw me over

It's only the income generated from that "extra money" is taxed at 74%. So if you have 100k in your company after you pay the corporate tax. Then pay yourself 50k, you pay personal tax on 50k you take out, same as everyone else. You then have 50k in the company not being used. You can't use that money for anything other than Company business, like payroll, office building etc. (completely normal). but... if you earn 2% interest on that money from the bank, Trudope wants %74 of the interest you get. He's calling that Passive income, and you're a tax cheat and dick head for screwing over the government. Everyone forgets that you already paid tax twice. Corporate on everything, and then again for personal if you ever want to use that money. Disclaimer... this is how I interpret it.

For all you Trudope supporters. this is not even as good as an RRSP that an employee gets. Small business isn't eligible for RRSP and still has to pay 15% corporate tax. Anyone who contributed to RRSP would also be a tax cheat and asshole. RRSP is %100 tax right off... I wish I was so lucky

[997TT]

it would be nice to pull everything out so you know what you are truly worth ... at least all of its in your name. But fk could you imagine the installment payments you'd have to make the following year...haha

[rage2]

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it would be nice to pull everything out so you know what you are truly worth ... at least all of its in your name. But fk could you imagine the installment payments you'd have to make the following year...haha

About 6 years ago, I had a really good year, and they increased the shit out of my installment payments. Those payments don't go down even though your tax liability does. I still get nagged to pay the equivalent of a new Benz every quarter even though I'm nowhere near that today. You don't HAVE to pay what they suggest, they only charge interest on anything above and beyond your quarterly tax liabilities. They will call you and bitch at you regularly for not making those payments though. I'm used to explaining to the CRA agent that calls me monthly of the situation.

[Buster]

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About 6 years ago, I had a really good year, and they increased the shit out of my installment payments. Those payments don't go down even though your tax liability does. I still get nagged to pay the equivalent of a new Benz every quarter even though I'm nowhere near that today. You don't HAVE to pay what they suggest, they only charge interest on anything above and beyond your quarterly tax liabilities. They will call you and bitch at you regularly for not making those payments though. I'm used to explaining to the CRA agent that calls me monthly of the situation.

I think you can formalize the lower amount with proper documentation, no?

[rage2]

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I think you can formalize the lower amount with proper documentation, no?

Not that I'm aware of. Not to mention I haven't paid that much taxes in years should be documentation enough.

[suntan]

I don't even bother paying instalments. My penalty is around $100/yr.

[bigboom]

Weird, I had the same situation as you but since then the CRA has lowered my quarterly installments based on the last 2 years I believe.

[350zguy]

It looks like they are starting to backtrack a bit based on public pressure. I think this still has a long way to play out.

http://business.financialpost.com/ne...cal-bleeding-2

[JustinL]

http://www.cbc.ca/news/canada/new-br...nges-1.4359860

Looks like passive income is still sheltered to $50,000. It will be interesting to see the finer details of this. Are old investments grandfathered? Does this apply to capital gains?

[dirtsniffer]

http://www.cbc.ca/1.4359052

[JudasJimmy]

He probable should have just left it alone. 40 yrs of fine tuning, it was already fair for everyone. The money he has already spent on this would be more than enough to cover a few more donations.

But to be a little more fair, passive income should be allowed up to 80K (reasonable for retirement, also makes you ineligible for old age pension etc.). Everyone's RRSP contributions should be taxes at %15 (Same as small business). Now everyone is paying their fair share, except of course the rich and large corporations. Which Trudeau seems to be giving money to.

[blownz]

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http://www.cbc.ca/news/canada/new-br...nges-1.4359860

Looks like passive income is still sheltered to $50,000. It will be interesting to see the finer details of this. Are old investments grandfathered? Does this apply to capital gains?

Existing investments will be the big one. This still seems like it will be overly complex.


And I really wanted to smack the PM when he was constantly saying "I will answer, you get to talk to the PM, ask me the questions..." lol

[phreezee]

An important bit I got from this article : http://www.cbc.ca/news/politics/smal...nges-1.4359161

The changes will not be retroactive, as outlined in the original proposal, and they will not affect existing savings, nor the income from those savings, the official said.

[350zguy]

backpedaling furiously. I like it.

[Buster]

So the tax rate on the first $50M of passive income is going to be the lower rater, and then over $50M of income will engage the new rules? Am I reading that right?