OT: Ticketmaster hacked. Data breach of over half a billion users.

[bballsparkin]

That's why I love realgm. a thread about Ticketmaster becomes a topic about saving taxes.

[NBA Sheady]

The purpose of the corp is to reduce tax. I pay a shockingly small amount of tax each year. I have had years where I paid zero personal tax (while claiming my wife as a dependent).

When you take out from corp, it pays more tax, I believe.
I am not expect in tax, but my wife is, mainly corporate tax in accounting firm (big 4).
The latest with capital gains over 250k would be 2/3 to tax (instead of 1/2 to tax) this coming July.
To have zero personal tax, you probably have a lot of expenses you can claim.

I took it as he owns a company and he's an employee of said company. That way he could be creative. He could funnel all potential capital gains down to himself and his family through expenses. As long as it's reasonable, he could pay himself as much as he wants. Also he could do things like go for a week of training in California while his family goes on vacation at the same time and expense his training back to the corp.

You got it.

I claim about 45k in expenses each year, rent, utilities, and internet. I claim meals out. Whatever is left in the corp I pay myself on my T4.

[NBA Sheady]

When you take out from corp, it pays more tax, I believe.
I am not expect in tax, but my wife is, mainly corporate tax in accounting firm (big 4).
The latest with capital gains over 250k would be 2/3 to tax (instead of 1/2 to tax) this coming July.
To have zero personal tax, you probably have a lot of expenses you can claim.

I took it as he owns a company and he's an employee of said company. That way he could be creative. He could funnel all potential capital gains down to himself and his family through expenses. As long as it's reasonable, he could pay himself as much as he wants. Also he could do things like go for a week of training in California while his family goes on vacation at the same time and expense his training back to the corp.

I see, just that "corp" (T4 for getting money) and "own company" (T1 for getting money) are different things in legal terms, so maybe you are right if he is not referring to legal terms of "corp". And the expenses need to be related to work. Bringing family on would not be allowed to claim expense from CRA, you can hope it is not caught, which is something I understand from my wife.

I might not totally understand your comments here but it's a corp with just me as an empolyee.

[Aventador]

compounding after-tax-at-highest-bracket over many years
vs
compounding pretax in Corp over many years + withdraw at lowest bracket over retirement years

finally, an intelligent comment about taxes in this thread