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Use of Corporations in Income Tax and Wealth Planning
Design and implementation of corporate structures to take maximum advantage of the significant income-earning capacity of dental professionals.
Professional Corporations: To take advantage of the low rate of income tax charged to such entities (currently 11% in British Columbia).
Trusts: for the efficient and flexible management of both your annual income, and your accumulations of investment capital. Trusts provide complete flexibility to make discretionary decisions about the direction such disbursements can take, without concern for outside influence – of particular benefit within families.
They can also control entitlement to the capital gains deduction (currently, $883,384 per person), a powerful tax planning tool to be exploited if, as, and when the dental practice is ever sold.
Holding Corporations: For the safe and confidential accumulation of investment capital for the long-term, and, eventually, retirement.
Special “limited participation” Shares: For those who do not wish to deal with the additional complexities of a trust structure, but do want the benefits of income splitting (usually, with family members who qualify), these type of shares can be installed into professional corporations. They offer the flexibility of achieving a specific income-splitting goal, for a limited time (for example, during your children’s college years), without downstream consequences as to entitlement or any other rights.
They can also control entitlement to the capital gains deduction (currently, $813,600 per person), a powerful tax planning tool to be exploited if, as, and when the dental practice is ever sold.
Holding Corporations: For the safe and confidential accumulation of investment capital for the long-term, and, eventually, retirement.
Special “limited participation” Shares: For those who do not wish to deal with the additional complexities of a trust structure, but do want the benefits of income splitting (usually, with family members who qualify), these type of shares can be installed into professional corporations. They offer the flexibility of achieving a specific income-splitting goal, for a limited time (for example, during your children’s college years), without downstream consequences as to entitlement or any other rights.
