Planning for tax minimization
Last time I wrote a quick article on personal taxes and preparing for them, this time I'm going to quickly chat about corporate taxes and how they impact your personal tax returns.
As an owner you have the ability to draw out money from your company in a few ways and depending on what your goals and objectives are the way you do this may be very different than your buddy who owns a business.
Q: When do you plan for the draw?
A: You should plan at least 3 times a year -
* at the beginning to figure out the various tax scenarios.
* mid-year to make sure things haven't changed significantly
* end of year to make sure that things are still on track
Q: How should I take out my money?
* do you need RSP room?
* are you looking to maximize you CPP?
* do you have other investments that need to be included in your calculations?
Q: Is there a way to take money out without paying the CRA?
A: You will always have to pay the tax authority. The only thing we can do is help you
minimize what you pay through effective planning ahead.