Corporation tax laws on passive income

[997TT]

Not sure how many of you guys have savings in a corporation but those that do, what have you been told to do, leaning towards doing?

talking to a few guys in the same field as me and a couple of them were planning on withdrawing everything this year and taking the hit.

also heard life insurance schemes will still work... haven't read up a ton on the subject myself nor do I have a financial advisor to bounce ideas off of.

[Buster]

Life insurance products will proliferate. I'm meeting with my accountant in a couple of weeks to figure out strategy. But we actually don't know what the feds are planning, so it's hard to determine.

[ercchry]

I guess it probably depends on how the dates work out, but if you were to pull everything out, wouldn’t you be better off waiting till the new year (if possible) to pull it out instead of getting hit at the top bracket on every dime, since you’ve probably already pulled close to a year’s income out this year already?

[speedog]

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Life insurance products will proliferate. I'm meeting with my accountant in a couple of weeks to figure out strategy. But we actually don't know what the feds are planning, so it's hard to determine.

But you do not actually get access to the monies in overfunded life insurance policies, do you? My understanding is that there's huge penalties to get at the side funds and you'd be taxed on their gains as well. The only way I've heard to get monies out of a life insurance policy side fund is to borrow against it which means you'll be paying interest on those borrowed monies or you sign over from the life insurance policy the equivalent of the borrowed monies plus accumulated interest.

Someone school us if it's different.

[TYMSMNY]

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Life insurance products will proliferate. I'm meeting with my accountant in a couple of weeks to figure out strategy. But we actually don't know what the feds are planning, so it's hard to determine.

you know you're trying hard in life when you meet with your accountant in a couple of weeks to figure things out when "we actually don't know what the feds are planning". What you going to figure out then?

Purchase _________ inside your corp. enjoy it. life is short.

[Buster]

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you know you're trying hard in life when you meet with your accountant in a couple of weeks to figure things out when "we actually don't know what the feds are planning". What you going to figure out then?

Purchase _________ inside your corp. enjoy it. life is short.

There's a few levers they can pull. We don't know what, if any, they will do. But we can start to make some changes to handle some of the obvious ones. Or might do nothing and wait. Not sure yet.

[JudasJimmy]

I'm in the same boat. I was planning to use the company as a big RRSP. Since I wasn't eligible for real RRSP's. I wonder if Trudeau will grandfather (Give me back) 20 yrs of RRSP since I structured the company this way (I'll still loose the %15 corporate tax I paid). Then I'll be semi-ok. If not. I'm thinking share holders loan and then just give him half the interest you pay. But there is no real answer until he tells us what the deal is. Either way there is no point to ever incorporating, since you will pay more tax than an employee. Sole proprietor would be the way to go, avoid the %15 corporate tax. The stupidity of this government is mind-boggling.

[ExtraSlow]

Maybe I should be happy my corporation doesn't make any money.

[TomcoPDR]

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Purchase _________ inside your corp. enjoy it. life is short.

Pretty sure exotic cars won't work

[ercchry]

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Pretty sure exotic cars won't work

Building relationships with high end clientele/marketing tool... dooooo it

[Sugarphreak]

...

[ercchry]

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Shouldn't money already in your company already have had the corporate tax paid? Or is the government planning on taxing dividends harder or something else I am missing?

The proposed rules are completely fucking passive income... think it’s something like a 74% rate by the time you withdraw it?

[TYMSMNY]

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Shouldn't money already in your company already have had the corporate tax paid? Or is the government planning on taxing dividends harder or something else I am missing?

Taxing money coming out of Inc. to personal account at "73%"

also to note. "Just FYI, the only way you can calculate a 73% tax rate is if you assume Ontario with 220K+ of income "

[rage2]

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The proposed rules are completely fucking passive income... think it’s something like a 74% rate by the time you withdraw it?

It's well explained here:

http://business.financialpost.com/pe...ke-it-possible

[speedog]

So as someone said above, sole proprietor now? Write offs similar, more personal risk but less exposure to these possible new rules?

[Buster]

Canadians are an envious people. Like all socialist leaning people.

[Sugarphreak]

...

[rage2]

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

It only screws you over if you keep money in the corp to defer personal taxes, which I guess is what everyone does? haha

[That.Guy.S30]

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It only screws you over if you keep money in the corp to defer personal taxes, which I guess is what everyone does? haha

Hahaha the banks are gonna have a shit show when corps start taking out all their money from the accounts.

[TomcoPDR]

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It only screws you over if you keep money in the corp to defer personal taxes, which I guess is what everyone does? haha

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