Year-End Tax Planning for Owner-Managers
On December 5th, Jay Goodis and Kim G C Moody discussed owner-manager year-end planning including optimization strategies, 2022 + 2023 tax rates, the RDTOH accounts, the passive income grind, and more.
Canadian corporate and personal tax rates are constantly changing. Combine the complexity of Canada's tax system with elements such as the NERDTOH, ERDTOH, GRIP, CDA, employer health taxes, CPP, EI, marginal tax rates, along with the constant tax changes, client objectives, and future unknowns makes the tasks of remuneration planning especially tricky. In this session we will be reviewing tax rates across Canada in 2022 and 2023 and share which types of income are subject to under-integration or over-integration. We will also explain the details of the RDTOH accounts, potential traps, and how to optimize the types of dividends to pay when balances exist in both RDTOH accounts and GRIP. We'll also explore optimization strategies using salaries, dividends, capital gains strips, and the impacts on balances such as the AAII.
The principle of Integration and integrated tax rates by province
Tax rates 2022 vs. 2023
Understanding and optimizing the NERDTOH & ERDTOH accounts
The impacts of the passive income grind to the small business deduction limit from adjusted aggregate investment income and province opt-outs
Opportunities to minimize the small business deduction grind
Salaries vs dividends vs capital gains optimization
Year-end tax planning recommendations
New capital dividend account reporting
Update on enhanced trust reporting and mandatory disclosure rules
Recent interpretations/bulletins of interest