Capital Dividend Account

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What is it?

A capital dividend account is a notional account that increases or decreases when you create capital gains or losses. You aren’t going to see a capital dividend account on any of your bank records or investment records.

Before watching this video, be sure to watch my previous video for a more in-depth explanation of taxes on capital gains.

 

How it works

Here is an example of $1,000,000 of farmland inside of the corporation worth $800,000, for a gain of worth $200,000

Watch the full video to see how the benefits but also why you should be careful when it comes to losses!

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Colin Sabourin is a Winnipeg-based investment & financial advisor with Harbourfront Wealth Management. His specialty is working with farmers who are planning to sell or transition their farms within the next 5 to 10 years. 

Disclaimer: The views expressed are those of Colin Sabourin, Certified Financial Planner, and Investment Advisor, and not necessarily those of Harbourfront Wealth Management Inc., a member of the Canadian Investor Protection Fund.