PAY LESS TAX
Establish a solid tax strategy to reduce tax on your income, in your corporation and within your estate.
Holding companies can be used to own investments and property that provide passive income, increasing your ability to make use of the lifetime capital gains exemption upon the sale of your operation company.
As the lifetime capital gains exemption is only available to those businesses which earn primarily “active income”, it can often make a great deal of sense to own investments and real estate in your holding company.
Talk to us today about the various ways you can gain from making use of your holding company, including:
- Tax-free dividends
- Creditor protection
- Efficient reinvestment
- Income splitting opportunities
- Planning for US estate tax (US citizens/dual citizens)
Estate Planning for Your Business
When proactively planning an estate, tax savings are often a large focus. As the Canada Revenue Agency considers all of your assets to be “disposed of” the day before your death, the “income” from that “sale” becomes taxable in your final return. Each year, countless estates pay out an excessive amount to the Canada Revenue Agency. Although tax is an unavoidable reality within even a well-designed estate, by using the right tools and knowledge, you can reduce or defer this sum significantly.
Is an estate freeze right for you? This is a useful concept that often utilized by business with a solid family succession plan. Once a freeze is enacted, any future growth of all or part of the current total value is transferred automatically to the next generation. As a result, taxes owed upon “disposition” of the business are deferred, subsequently allowing for a smooth succession.
Contact us today to minimize your tax bill.