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The Top Income Tax Strategies that are Missed by “Tax Factories”

This time of year many “tax factories” spring up. Whether it is a new piece of software or a person who has had 3 weeks of tax training; you could be leaving money to the tax man that is rightfully yours. You could be missing a number of income tax strategies. You need a Certified Management Accountant who works with tax everyday, not just for two months a year.  For a small amount you can get the professional adviceyou need to keep the tax man away from your money.

Personal Tax

  • Maximizing the value of Dividend Tax Credits and where appropriate transferring them between spouses
  • Protecting the principal residence deduction, if had to leave the house to work elsewhere for a period and renting the home for that time period, then returning to the home and getting the right to call it a principal residence again.
  • Protecting taxpayers from claiming unscrupulous tax shelters and schemes that will cause the taxpayer huge amounts of grief later (i.e., aggressive donation schemes, private school tuition deduction schemes)
  • Punitive sections of the Income Tax Act related to money going between family members (called Income Attribution
  • Not being aware of carry forwards that a client may be able to take advantage of
  • Maximizing the principal residence capital gain exemption if part of it is being rented out
  • Capital gains and superficial losses.
  • Not digging deeper with the client to find out other tax issues a client is facing, or could potentially be taking advantage of.

Change Jobs in 2011?

  • Dealing with a lump sum severance to get a rollover into an RSP without a) going into income or b) impacting/using any of your normal RSP contribution room.

Own a business?

  • Income splitting opportunities, especially when there is a business.

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