What is better for you: Salary or Dividend
Options to Withdraw Funds: The two most popular options to withdraw funds from the business are taking a business salary or dividends. A third option is to take a loan from the business; however, it is a temporary withdrawal as the loan is to be repaid. Below is a comparison of salary and dividends: Comparison […]
Underused Housing Tax (UHT)
What is the Underused Housing Tax? It is not safe to assume that the Underused Housing Tax may not apply to you just because you are a Canadian Citizen or a Permanent Resident. You may have to file UHT return to declare the exemption or face significant penalties for failure to file. If you are […]
Federal Budget 2022
Federal Budget 2022 On April 7th, 2022 the Federal Budget was released. This budget paper provides an overview and highlights key features included in the budget. For now, the budget includes proposals only, until legislation is brought forward and passed. Personal Tax Changes: Tax-Free First Home Savings Account introduced This is a new registered account […]
Benefit from 2022 Ontario’s Staycation Tax Credit
Ontarians who are planning a vacation (including family getaways) within the province this year could benefit from tax refund under the new Ontario Staycation Tax Credit program. Ontarians will get a 20% credit on qualified accommodation between in the year 2022. You can claim a maximum of $1,000 for an individual and $2,000 for a […]
Consider Incorporation
Advantages of Incorporation 1- Limited Liability With a corporation, individual shareholders are not responsible for corporate debts or other liabilities. Shareholder can only lose the value of their investments. Without corporation, a sole proprietorship and partnerships put all personal assets of the owners at risk. It is important to note in Incorporation that the lending […]
RRSP – Should I Maximize?
Common Perspective: Maximize RRSP! When it comes to savings for retirement, nothing can beat it! Reality: Always consider below before investing in RRSP: Current income level and expected tax bracket upon retirement. It is not advisable for those in the lower tax bracket and those who expect to be in higher tax bracket upon retirement […]