Ask the Expert: Do I opt out of CPP contributions in 2012?
Wednesday, February 15th, 2012
Question: “Both my spouse and I are 66 and are collecting our CPP. We are both earning salaries in 2012. Our intention is to make this our last year of work with any salary. The question is: Is it worth each of us paying $2,300 in CPP premiums for 2012. By the time the company [...]
Is your consulting business a Personal Services Business (PSB)?
Tuesday, November 29th, 2011
A PSB contemplates a situation where services are rendered by an incorporated employee – the consultant – and but for the corporation, there is an employee and employer relationship. An automatic exemption from the PSB rules applies where the company employs 5 full-time employees throughout the year or the amount received for services is from [...]
How to turn $1 into thousands of dollars of annual tax savings: Testamentary Trust Planning
Thursday, November 3rd, 2011
A person need not always have a great deal of wealth in order to create substantial tax savings for a child or someone else who will be a beneficiary of his estate. Tax advisors often recommend that high net worth clients create testamentary trusts in their Last Will and Testament since such trusts can provide [...]
Private company shares in your RRSP
Wednesday, July 27th, 2011
Under limited circumstances it is possible to hold private company shares in your RRSP (or TFSA). The recent Federal budget has made it more difficult to qualify for this opportunity. The really bad news, is that if you previously qualified, and your RRSP holds private company shares, that investment may now be off-side, and subject [...]
We recommend you consider setting up a family trust!
Friday, June 24th, 2011
Kalin L. McDonald, CA, CFP, TEP A client contacted me last week to ask for my assistance planning his distribution of funds out of his family trust this year to maximize the tax efficiency of paying these funds out to his family. Several years ago we took my client’s interest in a successful manufacturing company [...]
