Tax Planning

The TFSA vs RRSP decision comes down to one comparison: your tax rate today against your tax rate when you withdraw. Fill the TFSA first if you earn inside the lowest federal bracket, which runs to $58,523 in , or if you expect to qualify for the Guaranteed Income Supplement later. Fill the RRSP first…

Neither one wins on tax alone. Canada’s integration system is built so that income earned through a corporation and paid out carries roughly the same total tax as income earned directly, and the gap between salary and dividends usually lands within one or two percentage points. What separates them is everything else. Salary creates RRSP…

Probate costs in Ontario are significantly higher than in Alberta. Ontario charges 1.5% on estate values over $50,000, meaning a $1 million estate pays approximately $14,250 in probate fees. Alberta uses a flat fee structure capped at around $525 regardless of estate size, making it one of the most affordable provinces for probate. The difference…

You can legally avoid capital gains tax on property in Canada by claiming the principal residence exemption on the home you live in. For a rental, cottage, or investment property, you can shrink the tax by raising your adjusted cost base, using capital losses, spreading the gain with a five year reserve, and moving property…

Canada’s luxury tax adds a significant cost to any vehicle purchase above $100,000, but knowing the right strategies can save you thousands of dollars whether you buy or lease. The tax is calculated as the lesser of 10% of the total vehicle price or 20% of the amount above $100,000. This makes it a substantial…

Relocating to a new city or province can be a daunting process, especially when it’s for a new job or business opportunity. The good news is that the Canada Revenue Agency (CRA) allows you to claim certain moving expenses on your tax return. This can help offset some of the costs associated with your move,…