Individual and corporate tax planning

Our federal personal tax rates are graduated in 4 tax brackets. In 2014, Ontario added a fifth bracket $150K-$220K that is part of the federal fourth bracket. The more you earn, the more is the tax bill.

  • Consider transferring income producing assets from one spouse to another to achieve an optimal balance in your annual tax liability
  • Consider a claim for medical and charitable donations on one spouse’s return as opposed to another to minimize annual taxes
  • Up to 50% of private pensions may be split between spouses
  • Consider the transfer tuition and education tax credits from your adult child or spouse
  • Consider joint ownership of rental properties
  • Consider transferring assets on a tax-deferred basis that have appreciated in value to your corporation to absorb corporate tax losses
  • Issue discretionary shares to adult family members to split dividends that would otherwise be taxable to one top bracket family member
  • Align your remuneration from your owner-managed corporation to meet your RRSP and other retirement objectives

Contact your professional advisor prior to implementing any of the outlined strategies