Are We Double Taxed If We Earn Income In A Corporation?

[@gofishinginternational1865]

very informative and to the point video, thanks for information! keep posting!

[@RealEstateTaxTips]

Glad it was helpful!

[@TruePersianPrince]

Thank you so much for this example. This really helped me understand.

[@RealEstateTaxTips]

I'm so glad!

[@socalislove]

Thank you! Your video is really helpful. Could you also do a comparison video on Investment Capital Gains Tax on personal and business please?

[@sohoadress5436]

Thank you so much for the always providing very informative videos. Two questions (using the examples provided in the video): Will he to pay any corporation tax even if there was no income in seconds year? What is the tax implication if there was no split income in year two?

[@RealEstateTaxTips]

No tax in year 2 in the corporation if no income in year 2, unless the taxpayer is earning investment income from the cash remaining in the corp. No tax implication on the income in the corporation and assuming not taking into personal name.

[@fi_high]

Thanks for going through this detailed example, Cherry! What are the costs to set up and keep a corporation on a yearly basis? It would be good to know if it could be a significant cost in the 2-year example.

[@RealEstateTaxTips]

Cost to setup corporation varies depending on the complexity and structure required and your long term goal as well. Can range from as little as a few hundred to a few thousand dollars. Cost to maintain your corporation, again, depends on the amount of work and complexity involved and how much you do as well - can be anywhere from $2,500 to $10K. This is an overly simplified version, but you get the idea of it.

[@mechertw]

Thanks for making this video - great examples! I would like to know what the dividend tax rates are? Are these posted on the CRA website somewhere, or how can I estimate what my taxes payable would be if I withdraw money from my business through a dividend?

[@RealEstateTaxTips]

I don't necessarily know an online computer that would allow you to estimate the taxes based on the nature of income received. EY though has an online tax calculator.

[@gofishinginternational1865]

I quite don't understand how you come up with only $2124 on tax on Divident? Or is it just provincial taxes? If you add all together (provincial + federal + taxes paid by LLC) then it is +\- same as you were sole propreitor. Then another question - is there any tax savings of running LLC vs Sole propreitor?

[@KirstenMulder-l2q]

How does this calculation happen if I do my own personal tax return. Do I need to indicate that I own a corporation so they know to tax my dividends at a lower rate?

[@kenjames8377]

Why don’t you dig a little deeper and give us the loopholes that RICH people use to pay little to no tax. For example, putting your assets with a bank who issues a LOC against those assets and you can pay off debt tax free.

[@RealEstateTaxTips]

We do talk about Whole Life Insurance policies. In the financial planning world, there're lots of videos on how to borrow against your own home to invest, and withdraw RRSP to pay down the interest and minimize taxes. Unfortunately, most of these videos don't like to see real income generated on your investments.

[@albertbeaulne9114]

Please you keep repeating the same information just say the point please

[@jojo6663330101]

What about a real estate investment corporation where income is passive?

[@RealEstateTaxTips]

Similar logic can be applied - that's also how our tax system is designed.