Ep.026: Income Splitting Strategies for Business Owners

Summary

In this episode, the hosts discuss various strategies for income splitting, focusing on tax efficiency for business owners. They explore the implications of salary versus dividends, the use of capital dividends, and the importance of understanding attribution rules. The conversation emphasizes the need for holistic financial planning and the potential benefits of utilizing tools like RRSPs and RESPs for effective income splitting.

Topics Covered in this Episode

00:00 Introduction to the New Format

02:21 The Importance of Holistic Tax Planning

04:39 Income Splitting Strategies

11:34 Tax Risks in Income Splitting

17:21 Exploring Tax-Efficient Dividend Strategies

20:15 Balancing Immediate Costs and Future Growth

21:22 The Importance of Long-Term Financial Planning

22:44 Salary vs. Dividend: Making the Right Choice

24:36 Understanding Tax Implications for Business Owners

26:42 The Role of Income Splitting in Financial Strategy

30:12 Basic vs. Advanced Income Splitting Strategies

31:14 Utilizing RESPs for Tax-Efficient Income Splitting

32:40 Creative Strategies for Spousal RRSPs

38:57 Navigating Attribution Rules in Income Splitting

41:10 Understanding Anti-Avoidance Rules in Tax Strategies

Co-Pilot Tax

Website: https://copilottax.ca/

Canadian Tax Guy: https://x.com/canadataxguy?lang=en

Millen Wealth AdvisorsWebsite: https://www.mwadvisors.ca/Register for our Free Financial Planning Masterclass for Business Owners: https://event.webinarjam.com/channel/Financialmaster

Follow us on Social MediaPodcast YouTube Channel: https://www.youtube.com/@MillennialMoneyCanadaPodcastSam’s TikTok: https://www.tiktok.com/@millennialmoneycanada?lang=enSam’s LinkedIn: https://www.linkedin.com/in/sam-lichtman/Guillaume’s Instagram: https://www.instagram.com/financialplannergui/Guillaume LinkedIn: https://www.linkedin.com/in/guillaume-girard-cfa-cfp-08487170/

Keywords

Income splitting, tax efficiency, salary vs dividends, capital dividends, attribution rules, financial planning, tax strategies, Canadian tax, RRSP, RESP

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