Thanks! Is it suitable for entrepreneurs?
We’ve used turbo tax in the past.
Also wonder if DH should incorporate?
Incorporation can be very lucrative, even after the latest changes.
@Mr. Rich Moose This caught my attention! My accountant says it is not worth doing a professional corporation after the recent tax changes. I'm very curious as to why you say it is still can be advantageous/lucrative?!
It depends on a lot of factors like your income level, if you are married or not, how much your PC earns, how much you spend relative to that, how much you value CPP/EI, when you plan to retire, where it makes the most sense to keep your investments given your strategy, OpCo/HoldCo potential, shareholder loans, etc.
Simple case: Alberta and your corp earns $60,000 per year. Do you pay yourself a salary or dividend?
Well, $60,000 salary incurs $14,530 in taxes and payroll deductions leaving you $45,470 to spend. Corp pays no tax.
For dividend, $60,000 incurs $7,200 in corp tax net $52,800. You only need to pay yourself $50,000 in dividends to have $45,735 after tax (more than with $60,000 salary). This leaves you $2,800 in play money. You can invest in corp, pay yourself a higher dividend and invest in TFSA, or whatever. Your spouse can still pull dividends in retirement and you can as well. You can still have a big RRSP-type account in your corporation.
In general a corp is somewhat more expensive to run, but gives flexibility and will probably leave some people better off. It also doesn't tie you to CPP, which is probably a decent program for the uninformed, but okay to avoid for a Mustachian.
If your accountant tells you not to do it, then I guess you probably shouldn't for your situation. If you doubt them, run some numbers for your situation and see what kind of impact it would have.