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Tip 2 – Tax on Split Income (TOSI) | Tax on Passive Income (TOPI)

This note continues Tax Principal Raffaele Ruberto’s ten-week Friday Tax Tip series, helping business owners and their family members mitigate the new Tax on Split Income (“TOSI”) and upcoming Tax on Passive Income (“TOPI”) rules. As always, if there are any topics you would like addressed, or have specific questions you need to be answered, … Continued

Tax Tip 1 – Tax on Split Income | Tax on Passive Income

Each Friday, until the end of January 2019, I will provide helpful information on how business owners and their family members can mitigate the new Tax on Split Income (“TOSI”) and upcoming Tax on Passive Income (“TOPI”) rules. If there are any topics you would like addressed, or have specific questions you need answered, just send … Continued

Tax Tips for Year-End

1. Tax on Split Income Starting 2018 and onwards, every single individual resident in Canada who receives or realizes an amount derived from a private corporation, partnership or trust will need to understand the Tax on Split Income (“TOSI”) rules. Income splitting with non-active family members is severely restricted or not available under the new … Continued

T1 Checklist for Clients

The team at SB Partners is ready to help you navigate tax season smoothly. To help assemble your financial information for the preparation of your personal income tax return, a T1 checklist is now available. The list will help you to identify, collect and collate information required for your tax return. Please click here for a copy … Continued

Update on the Canadian Tax Landscape

In this blog, we update you on the hotly contested July 2017 private company Canadian tax proposals. First, there is cause for modest celebration by business owners: the initial adverse proposals intended to i) limit access to the capital gains exemption and ii) prevent converting income received from a private corporation into lower-taxed capital gains … Continued

Overview of New Draft Legislation to Address Income Sprinkling

On December 13, the government unveiled the final version of the new legislation regarding Tax on Split Income (TOSI) rules effective January 1, 2018. Overall, the legislation proposals extend the tax on split income (“TOSI”) to individuals aged 18 and over (specified adult individuals) as they suggested in the July 2017 proposals.  The intention of … Continued

Passive Income in a Corporation

What is it? Passive income effectively refers to income earned on funds or investments that are not active business assets. For example, portfolio investments, stocks, bonds, rental properties, real estate investments. Proposed Changes The government is concerned that investing through a corporation creates an opportunity for much more rapid accumulation of wealth than would be … Continued

Income Sprinkling

What is it? It is capitalizing on the lower marginal tax rates of family members and diverting corporate income to them. Proposed Changes The Tax reform proposals generally seek to curb using a corporation to split income with family members in a lower tax bracket who do not work in the business.

Investing in Property?

House or condo purchases made for the purpose of renovating to increase value and imminently sell for large profits is commonplace. Too often, however, there’s no consideration regarding tax implications. Everyone seems to know someone engaged in speculative real estate transactions to make quick profits, often moving houses as part of the plan. Here’s what’s … Continued

Registered Disability Savings Plan (RDSP)

Registered Disability Savings Plans (RDSP) are offered by the Government of Canada for individuals who are receiving the Disability Tax Credit. These tax credits are available to people with ‘severe or prolonged’ mental or physical impairments that markedly impact an individual’s ability to perform basic activities.     The RDSP is a tool to help … Continued