A section 85 rollover allows Canadian taxpayers to transfer appreciated property to a taxable corporation without triggering the associated capital gains tax. In other words, a section 85 election allows a taxpayer to defer all or part of the tax consequences that would normally arise on the transfer. This post describes section 85 rollovers and provides two examples of how they might...
When working class entrepreneurs become wealthy, they bring a perspective about wealth much different from those who inherit it. Wealthy inheritors face unique challenges that require distinct approaches to wealth management. This post describes 5 challenges wealthy inheritors face and how to overcome them: Financial AwarenessLifestyle ManagementStewardshipSelf EsteemTrust in Relationships
A private foundation, sometimes called a “family foundation”, is a type of registered charity. Private foundations do not undertake charitable activities directly. Rather, private foundations simply fund other registered charities. Unlike public foundations, private foundations can be controlled by a single individual or connected groups of people. This post describes why investors may want to maintain a private foundation. This post...
Owning some or all your assets in joint ownership with your heirs (your spouse & kids) is common practice for many investors, particularly seniors. The main reasons to hold assets jointly is to avoid probate fees, make the administration of your estate easier/quicker, avoid certain taxes, and provide your heirs with a way to help you manage your finances. This...
Recently, I decided to sell my shares of 3M. I’ve been shareholder for over a decade, which made the decision harder. This post describes my rationale towards making investment decisions based on non-financial (environmental, values) criteria. This post also provides an example of a portfolio faced with a similar decision-making process.
Managing a holding company (“holdco”) successfully includes keeping accurate records and performing administrative tasks. Missing some details might mean your holdco fails to comply with tax laws. But also, failure to administer your holdco properly could mean you waste time in the future cleaning up messes or wasting time searching for information. This post describes how to manage a holding...
Investors end up with capital inside holding companies for a variety of reasons including inheritance, tax & estate planning, and after the sale of an operating business. A holding company (“holdco”) is simply a corporation that earns passive income. Passive income is income earned from investments such as dividends from stocks, interest from loans & bonds, rent from real estate,...
Life becomes different after you come into a big pile of cash. Whether you’ve just sold your business, received an inheritance, or won the lottery. Suddenly being rich also brings problems. This post will describe some ways to approach life after you cash in.
How might Real Estate fit into diversified investment portfolios? And how might Real Estate Investment Trusts (“REITs”) be a good way to passively invest in real estate? This post will explore what REITs are and how investors might use them.
When someone dies owning private company shares, there is a risk of double or even triple taxation. A deceased individual’s estate owning private corporation’s shares may be taxed because of the deemed disposition at death of those shares (capital gains tax).There may be tax payable by the corporation when it sells assets to fund distributions to the deceased person’s estate (capital...
