In light of corporate investment tax changes, I was wondering if anyone here has any experience utilizing BC's Small Business Venture Capital Tax Credit. I believe some other provinces have similar arrangements.
I'm thinking of making alternative investments 5-10% of portfolio. Previously just been 5% REIT because of low fees. Looking at sites like seedups.ca or brightspark.com. Obviously venture capital/angel investing is much higher risk, and I've read many scare stories re: fee's, don't invest it what you don't know etc.. But if you invest in a handful of startups, say about 1% of portfolio each, and you're a getting tax credit, would this start to make sense?
I have a feeling that these investments may have further benefit wrt passive investment tax changes. Not going to act on anything until this is clarified but like to hear others thoughts (will of course be running this by my accountant as well)
https://www2.gov.bc.ca/gov/content/empl ... ax-credits
alternative investments, tax credits
Re: alternative investments, tax credits
I avoid all government schemes because the government has no idea what constitutes a good investment.
If you want to devote 5% to high risk, start playing with public small caps. Going public assures at least a measure of discipline, especially if not a reverse takeover.
If you want to devote 5% to high risk, start playing with public small caps. Going public assures at least a measure of discipline, especially if not a reverse takeover.
For the fun of it...Keith