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All items tagged with: income sprinkling

Budget 2018: Its Place in Canadian Tax History

Posted: February 06, 2018 By: Evelyn Jacks
Posted in: Strategic Thinking , Financial Literacy, CRA, knowledge bureau, Canada Revenue Agency, Evelyn Jacks, federal budget, tax courses, finance minister, tax changes, income splitting, financial education, tax reform, family wealth, Morneau, tax history, income sprinkling, unfair tax changes, business tax, online education, Edgar Benson, Tax Reform 1969, Royal Commission on Taxation

What should we anticipate in this year’s federal budget? Evelyn Jacks weighs in on the anticipated changes – and who will be affected by them - with signals already clearly evident from recently released Finance Canada documents.

People in the News: Benitta Anselm Nerio

Posted: January 09, 2018 By : Knowledge Bureau Staff
Posted in: Strategic Thinking , CRA, knowledge bureau, Evelyn Jacks, Small Business, tax courses, tax changes, tax advisors, tax education, CE summits, Morneau, income sprinkling, online education, income tax preparation, income tax for business, tax for proprietorships, Benitta Anselm Nerio

We’d like to say congratulations to Benitta Anselm Nerio on the completion of Knowledge Bureau’s T1 Professional Tax Preparation – Intermediate course. Here’s what she had to say about her experience:

Anything But Simple: Morneau’s Income Sprinkling Rules Start January 1

Posted: December 19, 2017 By: Evelyn Jacks
Posted in: Strategic Thinking , Financial Literacy, CRA, capital gains, knowledge bureau, Evelyn Jacks, family business, retirement planning, investment income, tax courses, financial advisors, retirement income, wealth management, tax changes, income splitting, tax advisors, financial education, tax reform, small business tax, Liberal government, Canadian income tax, Morneau, income sprinkling, family tax credits, reasonableness test, capital contribution, private corporation tax, incorporated business

It’s official, family income sprinkling rules will take effect January 1, 2018, and, unless a family member can show active participation under still-complicated reasonableness tests, distributions of income from private family businesses will be taxed at top tax rates, with none of the progressivity in tax rates available to individuals. This will require an immediate rethinking of resources available to the economic unit known as the family business.

Keeping Businesses in the Family Through Financial Planning

Posted: October 31, 2017 By : Knowledge Bureau Staff
Posted in: Strategic Thinking , knowledge bureau, succession planning, Evelyn Jacks, Small Business, ce credits, tax course, tax preparation for proprietorships, income splitting, financial education, CE summits, business development, intergenerational issues, income sprinkling, family businesses, business builders, small business taxation, business succession, lifetime capital gains exemption, family debt management, year-end planning, tax workshops, Advising Family Businesses

Statistics show that only 30 per cent of businesses are transitioned to the next generation. However, we’re entering a time when family businesses are going to play a much more integral role in economic growth and development. Why is this, and what does that mean for advisors and tax professionals?

Capital Gains Deduction Part III: Changing the Rules, Again

Posted: October 24, 2017 By: Walter Harder
Posted in: Strategic Thinking , Tax Planning, CRA, knowledge bureau, Canada Revenue Agency, Small Business, tax changes, income splitting, tax education, entrepreneur, CE summits, Walter Harder, income sprinkling, capital gains deductions, reasonableness test, taxpayers

The federal government has recently back-tracked on their plan to limit access to the capital gains deduction available to shareholders in a family business corporation, and that’s a very good thing, as the proposals would have cost family businesses a lot of money.

Addressing Unfair Tax Changes, Morneau Makes a Second Attempt at Tax Reform

Posted: October 17, 2017 By: Evelyn Jacks
Posted in: Strategic Thinking , knowledge bureau, Evelyn Jacks, Small Business, Canadian economy, finance minister, income splitting, tax education, financial education, tax reform, entrepreneur, CE summits, Liberal government, Morneau, income sprinkling, unfair tax changes, Distinguished Advisor Workshops, Trudeau, reasonableness test, private corporation taxation, family businesses, small business tax rate

The Finance Department backtracked on a few of their controversial tax reforms for private corporations this week, adding a tax cut of $2.9 Billion over the next five years to douse the flames of discontent. However, family businesses will continue to face tax risk and uncertainty due to a “reasonableness” test – albeit a simplified one – that will limit income sprinkling to contributors of labor, risk or capital in the business.