Investing

Living off investments (and reducing taxes)

  • Last Updated:
  • Sep 21st, 2017 9:41 pm
Deal Addict
Jun 27, 2007
3111 posts
493 upvotes
arvind84 wrote:
Sep 13th, 2017 8:05 am
As you can see, for 2017, $33K in dividends can be paid out without incurring Federal taxes. For Ontario, it's $43.5K before provincial taxes apply.
The $66K I referred to is for 2 people (33k apiece).
in a theoretical example where CCPC makes 200K/y from trading and pays 70K in dividends, what is the plan for the rest of remaining capital in light of proposed small business changes? If CCPC keeps the cash, it will be unfavorably taxed later on.
After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: it never was my thinking that made the big money for me. It was always my sitting. Got that? My sitting tight!
[OP]
Deal Addict
Apr 22, 2014
2609 posts
364 upvotes
Oshawa, ON
mathiewannabe wrote:
Sep 13th, 2017 9:32 am
Day dreaming? Even if u got 60MM right now after winning lotto max, this isnt the question to ask people on RFD.
you get a downvote.
signature removed for inappropriate content
Deal Addict
Nov 25, 2007
2709 posts
487 upvotes
Toronto
Honestly, I would put majority of it in AAPL stocks and then ride the wave.
Jr. Member
Nov 6, 2015
122 posts
200 upvotes
Oakville
dlhunter wrote:
Sep 13th, 2017 9:43 am
in a theoretical example where CCPC makes 200K/y from trading and pays 70K in dividends, what is the plan for the rest of remaining capital in light of proposed small business changes? If CCPC keeps the cash, it will be unfavorably taxed later on.
That's the million dollar question....Personally, I'm waiting to see what they actually implement before taking any action. There are too many hypothetical scenarios to think about.

In any case, I'm sure we will have ample time to adapt to any changes. AFAIK the changes will not be retroactive (hopefully).
Deal Addict
Jun 27, 2007
3111 posts
493 upvotes
arvind84 wrote:
Sep 13th, 2017 11:11 am
That's the million dollar question....Personally, I'm waiting to see what they actually implement before taking any action. There are too many hypothetical scenarios to think about.

In any case, I'm sure we will have ample time to adapt to any changes. AFAIK the changes will not be retroactive (hopefully).
I think Bill said it will be retroactive since Jul 2017 - not sure which measure, though. Could be capital gain and not retained earnings.
After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: it never was my thinking that made the big money for me. It was always my sitting. Got that? My sitting tight!
Jr. Member
Nov 6, 2015
122 posts
200 upvotes
Oakville
dlhunter wrote:
Sep 13th, 2017 11:18 am
I think Bill said it will be retroactive since Jul 2017 - not sure which measure, though. Could be capital gain and not retained earnings.
Disguising income as capital gains is a loophole that should be closed IMO. I wasn't even aware that such a practice existed until Bill brought it up.
I guess we will just have to wait and see where the chips fall...
Deal Addict
Jul 3, 2006
1066 posts
159 upvotes
dlhunter wrote:
Sep 13th, 2017 11:18 am
I think Bill said it will be retroactive since Jul 2017 - not sure which measure, though. Could be capital gain and not retained earnings.
After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: it never was my thinking that made the big money for me. It was always my sitting. Got that? My sitting tight!

Good Quote "After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: it never was my thinking that made the big money for me. It was always my sitting. Got that? My sitting tight!"

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