Purtzki + Associates

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Liberals to give doctors a huge tax headache?

The new federal government hates professional corporations. It wants doctors and other high income professionals to pay tax at the highest personal rate. In the next federal budget expect a two-pronged attack: Kibosh the small business tax … [Read more...]

Splitting income with your parents (and other relatives)

When you consider income-splitting strategies for your business corporation, don’t just look to your spouse and children. Income splitting is the No.1 tax shelter in Canada for business owners. For instance, if your corporation pays a $100,000 … [Read more...]

The 80/20 Rule: Cash flow up, stress down! Thanks Pareto!

In 1906, the Italian economist Pareto astutely observed that 20% of the people owned 80% of the country's wealth.  The principle that 20% of something is always responsible for 80% of the results is known as the Pareto Principle, or the 80/20 rule, … [Read more...]

Business Succession: 10 inconvenient questions you need to ask

Have you considered how your family business will succeed you?  Ask yourself these 10 inconvenient questions to be sure you haven’t left any stones unturned; In the event of your unexpected death, is your family capable of running the business? … [Read more...]

You have completed your medical residency! Now what?

Now that you have completed your residency the first thing on your mind is “finally all this work has paid off and I can start earning a living”. However, there are several things to now consider: Incorporating - This is probably the most common … [Read more...]

“Purification”: The key to selling your business tax-free

Purification is a term used by accountants to clean up the balance sheet of a family business corporation so that you can sell the shares of the business without paying any taxes. Basically, you cannot have any non-business assets in your corporation … [Read more...]

RESP: $1,200 in free money for your child starting August 15, 2015!

The BC government on August 15, 2015 will accept applications for a $1,200 BC Training and Education Savings Program (BCTESP) grant. The grant is administered through the Registered Education Savings Plan (RESP). See the attached link for … [Read more...]

Tax Free Savings: Should incorporated physicians invest?

The Federal Budget recently announced for 2015 the annual contribution limit to the tax-free savings account (“TFSA”) has been increased to $10,000.  This will benefit a lot of individuals, but it may not be the best approach for an incorporated … [Read more...]

Succession Planning: Dad, you’re either “in” or “in-the-way!”

For the last 5 years Cathy has been working in the family nursery wholesale business. Despite growing competition, the business, until now, has been holding its own due to the solid customer base nurtured over the last 30 years. This base is eroding … [Read more...]

Top 4 considerations when purchasing life insurance

Life insurance is an important piece in the puzzle that is your overall financial plan.  However, its importance is often overlooked.  The need for life insurance is different for every individual, and it is important to weigh all the options that … [Read more...]

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