Tax Minimization

How Flow Through Shares Work

How Flow Through Shares Work

By FT / May 31, 2020 /

One of the more interesting Canadian-specific investment tax strategies available is flow through shares.  I’ve written several articles over the years on how flow through shares work, what they are, their associated advantages.  As I began to update my knowledge on these unique investment tools, I decided to combine the piecemeal articles that I had…

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Canadian Investing Taxes - Dividends, Interest, and Capital Gains

Canadian Investing Taxes: Dividends, Interest, and Capital Gains

By FT / May 24, 2020 /

Are you curious about how investing taxes are calculated on dividends, interest, and capital gains across the various accounts in your portfolio?  I am by no means a tax expert, but I do have enough knowledge to give general guidelines on how you can figure out your own investing taxes and prioritize your subsequent investments.…

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income splitting tax strategy - spousal investment loan

Income Splitting Tax Strategy – Spousal Investment Loan

By FT / August 19, 2019 /

A couple of years ago, I wrote about income splitting strategies to help reduce family taxes in the scenario that one spouse makes significantly more income than the other.  Strategies such as: Contributing to the lower-income spouses TFSA (no attribution rules for TFSA contributions); Maintaining separate bank accounts where the higher income spouse pays for…

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Official Passive Income Rules for Canadian Small Business

By FT / March 5, 2018 /

In the Summer of 2017, the Canadian government dropped a tax bomb on Canadian small business owners with proposed changes to how they are able to split their income and their ability to invest excess cash flow into passive investments.  While they had some vague guidelines, they did not have concrete rules to wrap our heads around. …

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Income Sprinkling Rules for Canadian Small Business

By FT / February 12, 2018 /

In the Summer of 2017, the Canadian government dropped a tax bomb on Canadian small business owners with changes to how they are able to split their income.  While they had some vague guidelines, they did not have concrete rules to wrap our heads around.  All we had was speculation.  However, they have recently provided…

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Strategies to Reduce the Damaging Changes to Private Corporation Taxes

By FT / August 21, 2017 /

With the mandate of leveling the playing field between the rich and the middle class, the latest proposal from the Trudeau government is to make drastic changes to the way that small business is taxed, specifically, Canadian Controlled Private Corporations (CCPC).  I will admit that as a small business owner, there are a number of…

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Reduce your Taxes – Income Splitting Strategies

By FT / April 25, 2016 /

A portion of this article was originally written in June 2009, but relevant today due to the removal of the income splitting Family Tax Cut which allowed a family to notionally transfer up to $50,000 from the higher income spouse to the lower when filing taxes.  While many will take a hit from elimination of this tax benefit…

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Capital Gains Tax when Converting Currency

By FT / February 8, 2016 /

When I wrote about some low cost ways to convert your valuable US Dollars (USD) back into Canadian dollars (USD), there was a comment about the potential for capital gains tax which caught some readers by surprise. At a high level, if there is any sort of “profit” from doing a conversion from USD to…

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