Tax

Dividends or salary? Jason works through the numbers behind this common question for incorporated owners. The solo episode illustrates how combined corporate and personal tax can change the comparison, what salary provides that dividends do not, and why the outcome varies by province and income level.

Jason examines whether incorporating is the right first move for a new Canadian business. This solo explainer describes how a sole proprietorship works, its advantages and drawbacks including unlimited personal liability, and outlines the factors, such as loss deductibility and growth, that shape the decision.

Jason compares the two main ways to exit a business: a share sale versus an asset sale. This solo episode explains the tax and liability differences between the two structures, why sellers usually prefer one and buyers the other, and how the final structure and price are often settled through negotiation.

In this solo explainer, Jason outlines the Lifetime Capital Gains Exemption and how share structure affects whether a business sale qualifies. Viewers learn the tests a Canadian-controlled private corporation must meet, how passive assets can affect eligibility, and why the 24-month holding period makes timing a factor.

Jason takes a solo look at the turbulent recent history of capital gains taxation in Canada. This explainer covers what a capital gain is, how the inclusion rate works, the 2024 proposal to raise it on gains over $250,000, and how that change was ultimately cancelled after a resignation, a lawsuit, and an election.

Cross-border specialist Terry Ritchie provides an update on US-Canada taxation, from citizenship-based taxation and the tax treaty to estate tax exemptions. Listeners learn why Americans living in Canada face two systems that do not neatly align and what recent US policy shifts mean for cross-border plans.

Jon Shell returns to discuss Canada's newly passed employee ownership trust legislation. The episode covers the tax incentives designed to make selling to employees attractive, what an EOT means for staff ownership and rights, and how the route compares with a third-party sale for owners weighing succession.

Luc Lapalme, Senior Principal at Mercer, walks through the firm's compensation planning survey and what employers expected for salaries in 2024. Listeners learn how benchmarking against market data informs raise budgets and why compensation planning is about total rewards, not base salary alone.

Jon Shell of Social Capital Partners introduces employee ownership trusts, a structure that lets an owner sell a business to employees through a trust. The discussion compares EOTs with ESOPs and co-operatives, reviews the UK's experience since 2014, and explains where Canada's own version stands.

Braden Warwick of PWL Capital shares his research on optimal compensation, saving, and consumption for incorporated business owners. Listeners learn why there is no single right salary-dividend mix, how the passive income threshold interacts with the small business deduction, and where Individual Pension Plans can fit.

Aaron Hector of CWB Wealth breaks down the First Home Savings Account, Canada's newest registered account. The episode covers the annual and lifetime contribution limits, the combination of deductible contributions and tax-free qualifying withdrawals, and the eligibility fine print that is widely misunderstood at launch.

Accounting and tax consultant Vipul Jain demystifies SR&ED, Canada's Scientific Research and Experimental Development tax incentive. He explains what the program is designed to encourage, which businesses and activities qualify or fall short, and how documenting the scientific process supports a claim.

Cross-border expert Terry Ritchie of Cardinal Point returns to revisit Canada-US planning. The conversation covers the scheduled 2026 rollback of US estate and gift tax exemptions, how Canadians who have never been American can still face US estate tax, and considerations when buying property in the US.

Jason Pereira flies solo to review the 2022 federal budget, walking through 17 personal and corporate measures. He covers the new tax-free first home savings account, the doubled home buyer and home accessibility credits, the residential property flipping tax, and changes to the small business deduction.

Tax lawyer Anna Malazhavaya pulls back the curtain on CRA audits and how they are changing. The episode covers why honest taxpayers can still be selected, how an audit typically begins, how far auditors' powers now extend, and why good records and communication matter throughout the process.

Tax and estate planner Fabio Campanella explains how the CRA treats cryptocurrency. The conversation covers when crypto trading counts as business income versus capital gains, and how getting paid in Bitcoin for goods or services is measured in Canadian dollars for tax purposes.

Chris Sabat, General Counsel at McMillan Estate Planning, walks through the thinking and mechanics of an estate freeze. Listeners will hear how a freeze can limit capital gains on death, how it fits with the sale of a business, and what Bill C-208 changed for intergenerational share transfers.

Kim Moody breaks down Bill C-208, the law aimed at easing intergenerational transfers of small businesses, family farms, and fishing corporations. Listeners will learn what the bill changed in the Income Tax Act, why its drafting raises concerns, and what may still need fixing.

Guest host Guy Anderson joins Jason Pereira to unpack the 2021 federal budget. They review the national child care program, COVID relief measures, and what the budget did and did not change on the tax front for Canadian business owners.

Real estate lawyer Vic Gasparitsch raises concerns about Ontario's new personal real estate corporations. The episode explains what a PREC can and cannot do, how splitting income between agent and corporation creates accounting problems, and how simple the setup process currently is.

Jennifer Couldrey of The Upside Foundation of Canada discusses how founders can pledge equity to charity before an exit. The episode covers how donations of stock options or personal proceeds work and why giving before a sale can shape a company's community impact.

Jason sits down with Jonah Mayles of Sterling Park Financial to explore insurance tracking shares, an often overlooked corner of estate planning. Listeners will learn how a policy's cash surrender value affects the fair market value of shares, and why this structure matters ahead of a historic wealth transfer.

Terry Ritchie of Cardinal Point Wealth Management walks Jason through the tax tricks and traps facing Americans living in Canada who own businesses. The episode explains who counts as a U.S. tax resident, why income left in a Canadian corporation can trigger U.S. tax, and what cross-border owners need to watch.

Jason and Trevor Parry of TRP Strategy Group dig into post-mortem planning for holding companies. Listeners will learn what happens to corporate investments after an owner passes away, how deemed dividends are taxed, and the roles of loss carrybacks, share redemptions, pipeline transactions, and life insurance.

Jason and Kim Moody of Moodys Gartner Tax Law walk through the fundamentals of Canadian corporate taxation. Learn how the small business rate applies to the first $500,000 of active income, how dividends and salaries differ, and what the Kiddie Tax rules mean when paying family members.