The recent completion of your 2014 personal income tax return presents a good opportunity to review and consider a number of tax planning ideas to save you money. Effective tax planning is a primary ingredient of good financial planning and it is important to consider a wealth of tips and techniques to help you plan for a prosperous future.
For example, you may save significantly more tax by structuring your investments to make your interest expense deductible. If you own a business, consider the potential tax benefits of incorporating. Or if you have a corporation now, you should calculate your optimum salary-dividend payment mix to save tax. Most tax planning requires advance thought and discussion with your Chartered Professional Accountant.
Contact us now to arrange your free, no-obligation, strictly confidential FinancialCHECKUP™. Our Tax & Financial Advisory Services will save you money and prevent costly mistakes, both essential to your success. For over 30 years, we have helped businesses and individuals across North America.
TAX TIP A new business often incurs losses in its early years because it has start up costs and low revenues while it is getting established. Therefore, if you anticipate losses in your start-up years and you have sufficient income from other sources, you may wish to defer incorporation until your business is profitable. Once the business has attained a certain level of profit, incorporation may offer certain tax savings and deferrals. For professional assistance on your business situation, please contact us now.
Tax Planning Opportunities
In addition to considering some choices to be made on your income tax return itself, there is a number of tax planning opportunities available to individuals. Many of these opportunities are formally sanctioned by Canada Revenue Agency. Some arise as a result of ordinary commercial opportunities which happen to have favourable tax treatment. Typically, a review of your income tax return, which shows your income and its sources, is a necessary starting point for tax and financial planning.
Different Strokes for Different Folks
You should examine different tax planning strategies depending on whether you are in business, an employee, have savings to invest and so on.
For example, some of the income tax considerations which may affect your decision as to whether your business should be incorporated include:
- Anticipated future earnings
- Tax deferrals and savings
- Scientific research incentives
- Provincial incentives
- Income splitting and estate planning
TAX TIP Your income tax return shows you how much you are paying in income tax, and if you divide your total tax payable by your net income it will show you how much tax you are paying on every dollar of earnings. If that doesn’t motivate you to active tax planning, probably nothing will. To confidentially discuss your tax situation, please contact us now.
We Will Help You
Now more than ever, you need our comprehensive strategic tax consulting, business advisory and financial planning services. We also use the most advanced state-of-the-art technology to minimize your income tax liabilities.
To arrange your personal and confidential FinancialCHECKUP™, call now 905-709-HELP or click here.