As you know, our government has been hard at work these past few years trying to extract additional tax revenue from our small Canadian businesses. These changes will have a profound impact on how you do your tax planning moving forward. So, what strategies are the savvy and sophisticated business owners now using to shelter themselves from corporate taxes? Individual Pension Plans (IPPs).
The IPP in a nutshell:
- Strategy for business owners who are 40+ and are receiving $100,000+ in T4 income
- Allows business owners to move money out of their corporation into a tax-sheltered savings vehicle
- A great way to transfer wealth before a sale or wind down
- Helps purify your corporation to ensure you qualify for the capital gains exemption
- Contributions to your IPP are tax deductible resulting in decreased corporate taxes
If you’d like additional information on Individual Pension Plans let us know and we’ll send you our one-page report to review.
Colin Sabourin is a Winnipeg based Financial Advisor whose specialty is working with farmers. His focus is on farmers who are planning to sell or transition their farms in the next 5 to 10 years. Colin ensures the process is as smooth and tax-efficient as possible, while also creating plans to enable them to start the next chapter of their lives with confidence and security.
Disclaimer: The information contained herein was obtained from sources believed to be reliable. However, we cannot represent that it is accurate or complete. This report is provided as a general source of information and should not be considered personal investment advice or solicitation to buy or sell any securities. The views expressed are those of Colin Sabourin, Certified Financial Planner, and Investment Advisor and not necessarily those of Harbourfront Wealth Management Inc., member of the Canadian Investor Protection Fund.