Investment income in a CCPC

Income tax policy, rules, problems, strategy and software. Property and consumption taxes too.
izzy
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Re: Investment income in a CCPC

Post by izzy » 11 Aug 2017 15:40

fireseeker wrote:
11 Aug 2017 14:35
izzy wrote:
11 Aug 2017 14:08
Indeed ! and guess what Morneau did for a living in real life!
In his last year in the private sector, Morneau earned $1,071,859. As a cabinet minister, he is earning ~$250,000.
If he's trying to feather his nest, he's getting the math wrong.
It's not what he earned but how he earned it that I was referring to.I expect his company will come up with a creative way of overcoming the restrictions by setting up IPPs or RCAs or some such-with a healthy commission to the house of course.
"I disagree strongly with what you say, but I will defend to the death your right to say it."

tdiddy
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Re: Investment income in a CCPC

Post by tdiddy » 11 Aug 2017 16:44

izzy wrote:
11 Aug 2017 15:40

It's not what he earned but how he earned it that I was referring to.
How about where he earned it :shock:

http://www.cbc.ca/news/business/bahamas ... -1.3773041

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kcowan
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Re: Investment income in a CCPC

Post by kcowan » 11 Aug 2017 17:41

DavidR wrote:
11 Aug 2017 12:10
Rysto wrote:
11 Aug 2017 10:36
One of the issues is, what's stopping the Amazon programmer from incorporating?
The programmer's corporation would be taxed as a personal services business.
https://www.google.ca/search?q=personal ... e&ie=UTF-8
Right but as I said, this was done 20 years ago and they did not close the loophole until 2011! So for 1997 until 2011 it was a loophole and even after 2011 it was a risk that the CRA had to discover. I did not close mine until 2009.
For the fun of it...Keith

izzy
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Re: Investment income in a CCPC

Post by izzy » 12 Aug 2017 08:52

tdiddy wrote:
11 Aug 2017 16:44
izzy wrote:
11 Aug 2017 15:40

It's not what he earned but how he earned it that I was referring to.
How about where he earned it :shock:

http://www.cbc.ca/news/business/bahamas ... -1.3773041
"People in glass houses etc etc"
"I disagree strongly with what you say, but I will defend to the death your right to say it."

RPABVG
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Re: Investment income in a CCPC

Post by RPABVG » 16 Aug 2017 07:14

Hi All,
I'm new to the forum here and am interested in getting thoughts on holding securities in an OpCo and/or HoldCo vs. drawing them out paying personal tax and investing in TFSA or RRSP.

Assuming a long term horizon for retirement, top marginal tax bracket and a mix of interest, cap gains and dividends. Is one way advisable over another?

If you know of a current thread that discusses this already, please point me there. Thanks!
R

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ClosetIndexer
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Re: Investment income in a CCPC

Post by ClosetIndexer » 16 Aug 2017 15:29

RPABVG wrote:
16 Aug 2017 07:14
Hi All,
I'm new to the forum here and am interested in getting thoughts on holding securities in an OpCo and/or HoldCo vs. drawing them out paying personal tax and investing in TFSA or RRSP.

Assuming a long term horizon for retirement, top marginal tax bracket and a mix of interest, cap gains and dividends. Is one way advisable over another?

If you know of a current thread that discusses this already, please point me there. Thanks!
R
This is going to depend on the outcome of the changes the government is making this year, discussed in the few previous pages. The exact format for the changes is unknown, so it's impossible to answer your question with certainty right now. Most likely though, there will be no advantage to keeping securities in the corporations vs investing them personally, especially if you have RRSP/TFSA space.

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