What I want to know is how does this compare vs having a rrsp?
Sheltered tax growth for 30 years vs keeping money in my business for passive investments.
What I want to know is how does this compare vs having a rrsp?
Sheltered tax growth for 30 years vs keeping money in my business for passive investments.
I have read several articles that seem to have conflicting info. But I think it is the first $50,000 you make on passive income is taxed at the lower level and everything above that is at the higher level. So roughly $1M earning 5% is fine. But over that you are too rich and need to pay your fair share.This quote is hidden because you are ignoring this member. Show Quote
Note I am not 100% on that yet. Most of the reporters don't seem to know what they are saying lol
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Difference is how your money will get taxed when it's time to pull out after your 30-50 years worth of savings
Updated: March 10, 2022
My list of random For Sale (some free) stuff
This is probably more information than anyone cares to know about OAS but the current rules are: the income threshold before clawback for the 2016 tax year is $73,756. Any amount over this is subject to a 15% clawback (at $80k your monthly payment would be reduced by ~$78 or ~$936/year). The point where you would no longer receive an OAS payment (if you elect to receive at age 65) would be at $119,400 of gross income. You also have the option to split your pension income with a spouse to reduce your gross income to avoid the clawback (for now).This quote is hidden because you are ignoring this member. Show Quote
Have you considered starting an IPP (Individual pension plan)? these are a great option for self employed individuals whom are ineligible for an RRSP account. Talk to an accountant or a financial planner as it operates in a similar fashion to an RSP (sheltered growth) and the contributions can be deductible from the company income if it is done properly. There is a cost to set up and administer the IPP, however the cost is offset by the sheltered growth. If this passive income law comes in to pay I would not at all be surprised if they wipe out the option to open new IPP plans as well.This quote is hidden because you are ignoring this member. Show Quote
Last edited by bh87; 10-19-2017 at 02:31 PM.
If i had an annual income of $50K from passive income, i'd be laughing.This quote is hidden because you are ignoring this member. Show Quote
Met with our accountant on Thursday. As it stands now the wording is so all encompassing that even banking account interest is considered to be passive. Not a big deal for us as we only keep about $500K in there at any given time but for other companies with larger payrolls this is something they will need to keep an eye on.
Apparently they might even backtrack on income sprinkling to some extent.
There is also some thought that almost none of these measures will be made into even draft legislation because the bureaucrats are really struggling with appropriate wording.
So after the apologetic tax cut. Are all these BS still going forward as planned or more back tracking so we just end up even less tax revenue than when this started?This quote is hidden because you are ignoring this member. Show Quote
I have to say, what a bunch of fucking idiots to stir this pot.
The small business tax rate cut makes them lose billions in revenue, so in the end they will make far less.
These measures were, best case, supposed to bring in about $250million in new revenue. It was more about "fairness" or some other bullshit.
The Liberals have moved on to diabetics now. Yay, Trudeau.
https://globalnews.ca/news/3818585/l...s-critics-say/
This is hilarious in showing how inept the liberals are. Way to completely cock it up