If you have significant investment assets in non-registered portfolios or real estate, whether they are personally or corporately owned, whether you need income or not, you have several options at your disposal to minimize tax such as:
- Tax loss selling at the end of the year
- Implement a tax-sheltered Universal Life (UL) or Whole Life (WL) plan to enjoy tax-sheltered growth of your investment portfolio
- The cost of buying life insurance is less than the cost of tax in a non-registered portfolio. By investing in life insurance, you can tax-shelter funds over and above current RRSP contribution limits (18% of earned income or the maximum dollar limit for 2020 of $27,230). The earlier the plan is set up, the more compounded tax you’ll save on the growth of the investment.
- Take advantage of income splitting opportunities on pension and RRIF income
- Implement a Spousal Loan
- Maximize TFSA contributions for not only yourself but your children and grandchildren (above age 18)
Contact us today for more ideas to minimize your tax bill.