Top Tax Saving Strategy Tips

Top Tax Saving Strategy Tips

Contribute to

RRSP's

Do you Own Property?

Thinking of Selling?

• Reduce taxable income by contributing it to your RRSP

Tax Loss Selling

Do you own Stocks, bonds, mutual funds, real estate?

• Sell property that went down in value from initial purchase price to trigger Capital Loss

• Capital Loss counteracts capital gains from property sold during the year

• Reduce taxable income for 2015

• RRSP contributions are tax Deductible

Middle Class Income:

Wait till 2016 to sell and save 1.5% in taxes

• Deadline for RRSP Contribution for 2015 is
• Feb. 29.2016

Income of $200,000 or more:

Sell now in 2015 and save 4% in taxes

Charitable Donation

Contribute

to Your Spouse's

RRSP

Donate to a Registered Charity & Qualify for a Donation Tax Credit

Contribute no later than Dec.31.2015

• Claim tax deduction for contribution made

• 15% of total amount donated up to $200

• Spouse can withdraw money contributed from RRSP on/after Jan.1.2018

• 29% of total amount donated for over $200

• If spouse is in lower tax bracket, tax saved will be more than amount upon withdrawal

• Contribute donations all at once in 2015

Does Your Company offer Stock Options?

Contribute no later than Dec.31.2015

Claim tax deduction for contribution made

Your Stock Options in 2015

• Only 50% of stock income is taxable

Your Stock Options in 2016

• All 100% of stock income is taxable after a $100,000

Do you Have

Stock Options?

Middle Class Income:

Do You Own Your

Own Business?

Wait till 2016 to exercise stock options and save 1.5% in taxes

Income of $200,000 or more:

Exercise all your stock options now

in 2015 to save on a 4% tax increase

Is it Better to Declare a Year End Bonus or Pay Dividends From Company Profits to Yourself?

If you Recieve a Bonus

Does Your Company Make More Than $500,000 or Less?

Ask to Recieve your Bonus:

If your company makes more, the tax rate is:

25.5%

Trudeau's Tax

rate changes- How does it effect you?

If your company makes less, the tax rate is:

Does your company offer you a bonus?

Middle Class Income:

15.5%

Next year to save 1.5% in taxes

Income of $200,000 or more:

This year to save 4% in taxes

Declare a Bonus To Reduce Company Profit to less than $500,000 and Avoid the Higher Tax Rate of 26.5%

• Keep in mind, Personal Tax on a Bonus is 53.5%

Dividend

If you Take out a Dividend Instead, Pay: 38% on taxes

Tax Breaks for the Middle Class

Total of 54.4% in taxes if you add the 26% taxed on company profits

= 1% higher than paying a bonus

Save 1.5% in taxes

Taxes Rise for the Wealthy

Save 1% by Paying Bonus, OR:

An increase of 4% in taxes

for those making more

than $200,000

• Reinvest the money rather than pay the bonus and gain profit

• Example: Earn a 15% rate of return from investment, instead of paying out a bonus to yourself

Thank you!

Questions?