Poll

Is the first 50k of passive income taxed at the small business rate?

yes
0 (0%)
no
1 (100%)
sort of
0 (0%)

Total Members Voted: 1

Voting closed: March 09, 2018, 02:54:04 PM

« previous next »
Pages: 1

Author Topic: CORPORATE TAXES AND THE 2018 BUDGET  (Read 2625 times)

rustyone

  • 5 O'Clock Shadow
  • *
  • Posts: 2
CORPORATE TAXES AND THE 2018 BUDGET
« 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.

Logged

dreadmoose

  • Bristles
  • ***
  • Posts: 278
  • Age: 36
  • Location: Canada
  • Compounding
Re: CORPORATE TAXES AND THE 2018 BUDGET
« Reply #1 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).
Logged

Missy B

  • Pencil Stache
  • ****
  • Posts: 608
Re: CORPORATE TAXES AND THE 2018 BUDGET
« Reply #2 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?
Logged

ToTheMoon

  • Pencil Stache
  • ****
  • Posts: 859
  • Location: BC
Re: CORPORATE TAXES AND THE 2018 BUDGET
« Reply #3 on: March 07, 2018, 02:55:41 PM »
Logged

ToTheMoon

  • Pencil Stache
  • ****
  • Posts: 859
  • Location: BC
Re: CORPORATE TAXES AND THE 2018 BUDGET
« Reply #4 on: March 10, 2018, 09:29:42 AM »
Logged
Pages: 1
« previous next »
 

Wow, a phone plan for fifteen bucks!