beyond MD with Dr. Yatin Chadha Fundamentals of professional corporations with Ali Spinner
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Sep 3, 2020 In this engaging discussion, Ali Spinner, a chartered accountant with 19 years of tax expertise at Crowe Soberman, breaks down the essentials for medical professionals considering incorporation. He delves into the timing for setting up a corporation and the advantages of salaries versus dividends. Ali also sheds light on effective retirement planning using RRSPs and corporate investments, alongside strategies for utilizing corporate funds tax-efficiently. Listeners will gain valuable insights into navigating shareholder loans and maximizing tax benefits in a shifting economic landscape.
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When to Incorporate
- Don't incorporate right away if you're a new physician saving a small amount monthly.
- Consider incorporating if saving around $100,000 yearly, ensuring deferral outweighs professional fees.
Tax Deferral vs. Savings
- Incorporation offers tax deferral, not savings.
- Money taken out is taxed at your personal rate, negating short-term savings.
Income Splitting
- Prescribed rate loans are a legitimate income-splitting method.
- Loan a substantial sum (e.g., $500,000) to your spouse or a trust for children at a low interest rate like 1%.