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Around the World => Canada Discussion => Topic started by: rustyone on March 02, 2018, 02:54:04 PM

Title: CORPORATE TAXES AND THE 2018 BUDGET
Post by: rustyone on March 02, 2018, 02:54:04 PM: This is my first year investing retained earnings in my corporation. Does anyone here fully understand the new rules? Assuming passive income will be under 50k, what is the most tax efficient way to invest retained earnings in the corporation now? Dividend paying equities and Distributions from income trusts, and how are they taxed? If the corp earns 50k in eligible dividends and the corp pays shareholder 50k in ineligible dividends does the rdtoh still apply?

Also can use some help on how to report these amounts on T2 when the time comes.
Title: Re: CORPORATE TAXES AND THE 2018 BUDGET
Post by: dreadmoose on March 02, 2018, 03:44:54 PM: I'm sorry I can't answer this question but am very interested in the outcome, so I'm posting to follow after not being able to discern this myself (still makes sense to pull my investments out to tax-advantaged accounts at the moment).
Title: Re: CORPORATE TAXES AND THE 2018 BUDGET
Post by: Missy B on March 06, 2018, 11:15:50 PM: Quote from: rustyone on March 02, 2018, 02:54:04 PM
This is my first year investing retained earnings in my corporation. Does anyone here fully understand the new rules? Assuming passive income will be under 50k, what is the most tax efficient way to invest retained earnings in the corporation now? Dividend paying equities and Distributions from income trusts, and how are they taxed? If the corp earns 50k in eligible dividends and the corp pays shareholder 50k in ineligible dividends does the rdtoh still apply?

Also can use some help on how to report these amounts on T2 when the time comes.
Why are you wanting to pay the shareholder ineligible dividends when the corp got paid eligible dividends?
Title: Re: CORPORATE TAXES AND THE 2018 BUDGET
Post by: ToTheMoon on March 07, 2018, 02:55:41 PM: Not sure if this helps?

http://www.knowledgebureau.com/index.php/news/mobilearticle/2018-budget-overview-specific-tax-provisions-for-business?utm_source=Knowledge+Bureau+News+and+Communications&utm_campaign=3956bc76ae-2018+Federal+Budget&utm_medium=email&utm_term=0_034531a9c0-3956bc76ae-61138801&mc_cid=3956bc76ae&mc_eid=b861d7a8a5 (http://www.knowledgebureau.com/index.php/news/mobilearticle/2018-budget-overview-specific-tax-provisions-for-business?utm_source=Knowledge+Bureau+News+and+Communications&utm_campaign=3956bc76ae-2018+Federal+Budget&utm_medium=email&utm_term=0_034531a9c0-3956bc76ae-61138801&mc_cid=3956bc76ae&mc_eid=b861d7a8a5)
Title: Re: CORPORATE TAXES AND THE 2018 BUDGET
Post by: ToTheMoon on March 10, 2018, 09:29:42 AM: http://www.knowledgebureau.com/index.php/news/mobilearticle/a-sigh-of-relief-but-no-grandfathering?utm_source=Knowledge+Bureau+News+and+Communications&utm_campaign=8222321bca-EMAIL_CAMPAIGN_2018_03_07&utm_medium=email&utm_term=0_034531a9c0-8222321bca-61138801 (http://www.knowledgebureau.com/index.php/news/mobilearticle/a-sigh-of-relief-but-no-grandfathering?utm_source=Knowledge+Bureau+News+and+Communications&utm_campaign=8222321bca-EMAIL_CAMPAIGN_2018_03_07&utm_medium=email&utm_term=0_034531a9c0-8222321bca-61138801)