Taxation in Active Versus Passive Business Income
Wealth Without Bay Street 163: How Active Versus Passive Business
Income Is Taxed In A Canadian Controlled Corporation
Are you aware of the tax differences between active and passive income in the corporate world? It's important to understand the details surrounding both types of income, especially with rule changes that have affected definitions many of us widely believe.
In all honesty, the current tax rules for passive income are quite unfriendly
towards earners. Join Richard and Henry in discussing these issues to avoid any unpleasant surprises when it comes to filing taxes.
FREE report 7 Simple Steps to Becoming Your Own Banker -
http://7steps.ca/
Get our Bestselling Books:
1. Canadians Guide To Wealth Building Without Risk: https://wealthwithoutbaystreet.com/wwbs-book-1/
2. Cash Follow The Leader: https://cashfollows.com/
IN THIS EPISODE, YOU WILL LEARN:
[01:22] Introduction: What's the difference between passive and active
income taxes in a Canadian-controlled corporation?
[10:15] Why the marketed feature of incorporation is that it pays lower taxes isn't always true
[20:06] Make sure that you're serving more than one main client throughout a given tax year
[26:51] Flow Chart: Property source and the taxable capital gains source
[30:04] The small business deduction explained
[39:44] Incorporating their real estate
[45:08] Passive income test
[51:02] Comparison of two corporations with investment incomes
QUOTES:
● The passive income tax rules are not particularly friendly for anyone
earning income.
● Once you introduce a corporation – cost and complexity become much
higher.
● The onus in our tax world, at least in Canada, is always on the back of
the taxpayer.
● For real estate investors, rental income and capital gains are significant
to understand the effects of the decisions you make in the future.
● Most corporate owners end up falling into the income investment trap.
Sometimes we're not putting our vision forward and looking at what
that next tax bill will look like.
● You can be tax-exempt in a good way that allows your capital to
continue to grow.
————————————————————————————————
🎙️WEALTH WITHOUT BAY STREET LINKS:
FREE report 7 Simple Steps to Becoming Your Own Banker - http://7steps.ca/
Learn how Canadians are Implementing Infinite Banking for Free Here:
https://www.ascendantfinancial.ca/ibc-wwbs/?LeadSourceId=427
Podcast Website: https://wealthwithoutbaystreet.com/
Follow us on Facebook: https://wealthwithoutbaystreet.com/fb
Subscribe to our Youtube Channel: https://wealthwithoutbaystreet.com/yt
Book a 15-minute call: https://www.ascendantfinancial.ca/schedule/?LeadSourceId=427
Watch our Tribute To The Man Who Created Infinite Banking R. Nelson Nash here:
https://dayofnelson.com/day
🤝 Join Our Community! https://www.facebook.com/groups/wealthwithoutbaystreet/
📚 IBC RECOMMENDED BOOKS
https://wealthwithoutbaystreet.com/books
📽️ WATCH THE DOCUMENTARY
Documentary Film This is Nelson Nash: https://www.ascendantfinancial.ca/nelson-nash-film/
💸 Financial Advisor? Learn about the Infinite Banking Concept here: Nelson Nash Institute Practitioner Program: https://infinitebanking.org/practitioners-program/ref/6/
EVA - Economic Value Add The Real Key To Creating Wealth Article:
https://infinitebanking.org/the-real-key-to-creating-wealth/ref/6/
5 Myths of the Canada Pension Plan: https://www.fraserinstitute.org/5-myths-of-the-canada-pension-plan
See your own CPP contributions via your Service Canada Account:
https://www.canada.ca/en/employment-social-development/services/my-account.html
CPP Contribution rates, maximums and exemptions: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/payroll-deductions-contributions/canada-pension-plan-cpp/cpp-contribution-rates-maximums-exemptions.html
F2022 Annual Report on CPP Investments: https://www.cppinvestments.com/the-fund/our-performance/financial-results/f2022-annual-results/
#WWBS #RichardCanfield #JaysonLowe #HenryWong #theinfinitebankingconcept
#wealthwithoutbaystreet
-
1:20:14
Donald Trump Jr.
12 hours agoExclusive Interview with British Special Forces Hero Christian Craighead, the Man Who Saved Lives During Al-Shabaab Terror Attack | TRIGGERED Ep.140
86.8K113 -
4:16:54
TheGetCanceledPodcast
3 days agoThe GCP Ep 6 | Ryan Bensen Tells Us How UHNI's Stay Rich After Divorce, New Book Release & More
41.4K2 -
2:21:22
WeAreChange
5 hours agoREAL George Floyd Revealed! NEW Summer Of Love Coming?
36.7K47 -
1:58:00
The Quartering
7 hours agoLibertarian BACKFIRE, Israeli Attack On Tent Camp, Memorial Day Cringe w/Styxhexenhammer
42.4K58 -
1:35:58
2 MIKES LIVE
4 hours ago#71 2ML The Memorial Day Show!
15.7K2 -
1:28:17
RealitySurvival
3 hours agoPREPPER SITREP - Weekly News Wrap Up Of Prepper Centric News Stories
13.8K1 -
58:49
Kimberly Guilfoyle
12 hours agoRevolver News Exclusives: Major J6 Developments w/ Darren Beattie | Ep. 129
46.5K67 -
4:53:18
Fresh and Fit
10 hours agoGrind From Diamond To Masters With Overwatch Pro Awkward
79.3K22 -
59:50
Lee Camp
9 hours agoBREAKING: Putin Ready For Peace But US Stops It + Cornel West Joins The Show!
42K -
1:56:05
The Michelle Moore Show
1 day agoThe Michelle Moore Show Special Presentation: Gulf War Syndrome (May 27, 2024)
49.6K11