Income tax rules can be complex, change frequently and are sometimes open to interpretation. That's why you could benefit from using an experienced income tax advisor who can help you minimize your income tax. Our strategy is to look at the big picture which includes your business, spouse, children and even grand-children. Below are just a few methods we use.
Income splitting with your spouse
You likely know that you can only pay your spouse as an employee for work actually performed and at a rate you would pay a stranger for the same type of work. This can limit your family income splitting potential. However, there is a tried and tested method to split income with your spouse that doesn't require them to work in the business and has no limit on the amount.
Paying for children's education out of your corporation
If you have children then you are surely concerned about how to pay for their education. By the time you pay yourself and send the income tax to CRA, your pay cheque could have dropped by 46%! But there is a way to pay children (over 18) out of your corporation with little or zero income tax impact!
Paying for your health care costs out of your corporation
Health care costs can add up and although insurance can cover you for certain things, if you don't use it during the year you still pay the premium cost. Plus, health insurance is a taxable benefit so you are paying personal income tax on this. There is a product that allows your corporation to pay your health care costs with out limit, the amounts are NOT taxable benefits and if you don't use the amount during the year it carries forward indefinitely.