How Much Should You Pay Yourself From Your Business?
Meta description: Learn how Canadian business owners can balance salary and dividends to manage personal taxes, build RRSP room, qualify for mortgages, and plan for retirement. We bring you all the details. Quick answer: Canadian business owners generally have two main ways to pay themselves. Salary or dividends. Salary creates RRSP contribution room and CPP […]
The Top 5 Tax Mistakes High-Income Professionals Make in Canada
Quick answer: High-income professionals often focus too much on smaller deductions while overlooking larger tax-planning decisions. The biggest mistakes will cause draining finances in the future. Take care of this and plug the gaps before retiring. Once you are earning over $150,000 a year, tax becomes one of your largest expenses in Canada. And that […]
Protecting Family Wealth: How Wills and Family Trusts Can Reduce Taxes and Simplify Wealth Transfer
Quick answer: Canada does not have a formal estate tax, but death can still create a significant tax bill. CRA generally treats most assets as though they were sold at fair market value immediately before death. This deemed disposition can trigger capital gains tax. Probate and professional costs can add to the estate’s expenses. A […]
Asset vs Share Sale: Which One Is Better?
Quick answer: An asset sale lets buyers select specific business assets and leave certain liabilities behind. A share sale transfers ownership of the corporation, and that includes its assets and liabilities. In general, sellers prefer share sales. Buyers prefer asset sales. Imagine you wanted to buy a hair salon. You have two main ways to […]
Mistakes That Trigger CRA Audits and How to Avoid Them
Short answer: Most CRA audits in Canada start because of identifiable risk factors and not random selection. Things like missing records, unreported income, cryptocurrency transactions, large unexplained deposits, and ignored CRA letters often attract additional scrutiny. When you file your tax returns in Canada, it does not necessarily end your interaction with the Canada Revenue […]
What Is a Residential Rental Licensing Program (RRL) in Canada?
Short answer: Residential Rental Licensing (RRL) in Canada requires landlords to register rental properties, meet safety and zoning standards, and get a municipal license to legally rent units. Non-compliance can result in strict penalties for landlords. The Residential Rental Licensing, or the RRL, is a municipal compliance system that requires landlords in Canada to register […]
FIRE: Financial Independence, Retire Early in Canada
Quick answer: FIRE in Canada means building enough investments to cover your annual expenses through disciplined saving and investments and proper use of tax-efficient accounts to help you save for your retirement. Financial Independence, Retire Early (FIRE) focuses on building enough invested capital that is able to cover your living expenses without having to rely […]