The way we do it is as follows. My wife does not work for me but she holds a different class of shares than I do. She pays for groceries, child care and housing expenses. I pay the big stuff like mortgage and the car. We establish a budget for each of us, and declare a dividend for each of us to just barely cover our expenses. The rest stays in the corp and part of it is invested for retirement.John47 wrote: ↑Oct 12th, 2017 12:45 pmThanks for sharing.
1. Regarding this, do you mean you won't be able to split your salary paid out by the corp with her, or that the corp won't be allowed to issue dividends to her? If she's an equal shareholder holding the same category shares, she will no longer be able to receive dividends?
2. If you leave the business income in the CCPC, what penalty/tax do you expect that income will be subject to upon withdrawal? Compared to paying it out immediately.
The new rules I understand will force me to take all the dividends in my name since my wife does not work in the corp. This will push up my tax bill.. furthermore the money left and invested will be subject to some surtax in some form.