For wealthy investors, managing investment income goes beyond merely staying within favorable tax brackets. When personal income from dividends and interest is substantial, traditional income splitting between spouses may not suffice, as both parties could still end up in higher tax brackets. Therefore, it's crucial to think more broadly about income splitting and consider strategies that align with long-term financial...
Bookkeeping for charitable foundations isn't just a good practice—it's pivotal. And thankfully, efficient bookkeeping for your charitable foundation can be easy. But for success, you need a partner who understands the specialized demands of charities to ensure your foundation maintains compliance. Before we begin, let’s put your financial knowledge to the test with our free financial literacy quiz! Here are two...
The Alternative Minimum Tax (AMT) is a tax system that ensures that high-income individuals pay their fair share of taxes. The Canadian government recently made changes to the AMT as part of the 2023 budget. In this blog post, we will discuss how these changes will impact donors of publicly listed securities.
As a Canadian taxpayer, it's important to know the different types of business expenses that you can claim to reduce your taxable income. Claiming these expenses can help to minimize your tax burden and increase your profits. In this post, we'll list the main categories of business expenses that can be claimed in Canada, and provide some description of what...
The Canadian federal government recently released its 2023 budget, which includes changes to the Alternative Minimum Tax (AMT) that will impact high-income earners. This post will cover the changes made to the AMT and how it may affect wealthy philanthropists.
In the Canadian context, tax integration refers to the concept of ensuring that the combined tax burden on corporations and their shareholders is roughly equivalent to the tax burden that would be paid if the corporation's income was earned directly by the shareholders. The goal of tax integration is to eliminate or minimize the "double taxation" that can occur when a...
The US-Canada tax treaty, also known as the Canada-United States Income Tax Convention, is an agreement between the governments of Canada and the United States that is designed to prevent double taxation and promote trade and investment between the two countries. The purpose of the treaty is to ensure that individuals and companies who earn income in both Canada and the...
The Canadian government has proposed new reporting requirements for bare trusts, which will be effective starting in 2023. A bare trust is a trust in which the trustee holds legal title to the trust property but has no discretion over the distribution of the trust's income or capital. Under the new rules, bare trusts will be required to report the identity...
Near the end of 2022, the CRA introduced new rules that limit the proportion of interest & financing expense that may be deducted for tax purposes. These new rules may impact family office financing and income splitting arrangements. To provide clarity about how your family office financing arrangements might be influenced, this post will briefly outline what the new rules...
A master limited partnership (“MLP”) is a publicly-traded limited partnership. They payout a high level of cash income investors because of their unique tax structure. Because of this, MLPs are considered “high yield” investments; most suitable for income-oriented investors.
