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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...]

“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...]

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...]

Creditor proofing your assets

There are three key goals when planning for your future retirement: Maximize your wealth: work hard and live frugally. Pay the absolute minimum tax on your income. Don't have creditors steal your retirement nest egg. How can you limit your … [Read more...]

5 Most Overlooked Tax Write-Offs

To help you keep the tax bill to the absolute minimum, here are some tax deductions which are often overlooked. Payment to low income spouse A salary or management fee paid to your spouse for administrative services rendered can generate … [Read more...]

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