by: Melissa Thompson
There are two reasons why income splitting is so important in Canada to reduce the family’s tax burden: 1. Canada’s tax system is based on graduated tax rates 2. Everyone in Canada has a tax-free basic exemption amount A graduated tax rate system basically means that there is a higher marginal tax rate on taxable income as income increases. Furthermore, each Canadian resident can earn almost $11,000 (varies by province) of taxable income every year tax-free due to the basic personal tax credit. As a result of these two factors, if income can be shifted from a high-income parent to a low-income spouse or child, then the family can realize tax savings up to $15,000 per year (varies by province).
by: Lindsay Karabanow
Is Condo Ownership a Good Investment? Three important questions to consider Many of you may be wondering if investing in pre-construction condos would be an effective means of growing your wealth. If you are thinking of using pre-construction...
by: Lesley Machan
Everyone seems to be somewhat aware of the numerous deductions they can make for having a home-based business. But, how many people are aware these deductions can be applied to their employment income? And even if they are aware, how many people realize they can start their business for as little as $500? It’s true! Canadians pay among the highest personal tax rates in the G8, and the highest in North America. Little wonder that so many Canadians should feel they are paying too much, and wonder what they can do to legitimately reduce their tax bill.
by: Nancy Harris
Flooding, forest fires and even mudslides – like those that recently happened in eastern British Columbia – can unfortunately be a frequent occurrence in various Canadian regions leading up to and during the summer months. These situations take both an emotional and financial toll on those who live and do business in those areas. However, such events are proof of the strength of those who are able to overcome such chaos and serve as a reminder that it’s important to be as prepared as possible for adversity. A recent study of Canadian small businesses owners conducted by Sage North America showed that Canadian businesses may not be sufficiently prepared for a crisis. While 98 per cent of respondents said they back up their financial data, 71 per cent of surveyed owners said they do not have a formal emergency or disaster preparedness plan in place. Respondents cited that they haven’t had any issues in the past that influenced the decision to develop a plan (41%), they hadn’t thought about it (33%) or they don’t think it’s important for their business as reasons for not having a plan.
by: Christel Wintels
Over the past few months, we’ve been surrounded by negative reporting about our economic situation. And not only our own economy, but the economic crises that seem to be facing almost every country around the world. Job layoffs, bailout packages,...
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