Hi everyone, I was looking for a little advice on how to get the most money from my CCPC - I am a Newfoundland resident whose only source of income is from the company of which I am the only shareholder. I was looking at dividends as an option over salary but wanted to know what some more experienced people thought about it. I am looking at probably being left with around $40 000 in my company after total expenses of about $100 000. How can I get the closest amount to $40K into my personal account?
Thanks a lot in advance for any help
Just to add, I think my dividends are classified as eligible, and I'm really new at this, so here is my process so far:
1) corporate tax leftover money in business account at 15%
2) pay this on some form (?)
3) personal tax what's left at some rate (?) - maybe regular payroll calculator on CRA website
4) pay that personal tax on the normal tax return
5) then I'm good
Thanks Homer - the income-split thread was very informative and the taxtips calculator helped a lot - if I drew out 26000 in non-eligible dividends I would only have to pay in a few hundred in taxes - so thanks again
Btw, any info you might have on which forms to submit for paying the corporate tax off the dividends to the RG would be greatly appreciated
I am not sure I understand the question but when filing your corporate tax return you need to prepare schedule 3 for dividends received and paid, you also need to prepare t5 summary and supplementary which is to be filed with CRA, the supplementary is filed also with your personal tax return.
Originally Posted by dave6767
Don't know what you mean by paying corporate tax off the dividends.