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Shazam · 02-27-2008, 03:14 PM

I have a corporation. I own all 10 shares of my company. I place my company's shares into the TFSA. I then disburse money from my company to myself via dividends. That money is tax free from my end. My company will need to pay taxes because dividends are taxed, but that rate is far lower than what I pay in income tax.

I also give myself $10K in employment income, because the first $10K of employment income is income tax-free (you pay CPP still, I think. I pay no EI because I would never lay myself off from my own company).

02-27-2008, 03:14 PM	#37
Shazam Franchise Player Join Date: Aug 2005 Location: Memento Mori Exp:	I have a corporation. I own all 10 shares of my company. I place my company's shares into the TFSA. I then disburse money from my company to myself via dividends. That money is tax free from my end. My company will need to pay taxes because dividends are taxed, but that rate is far lower than what I pay in income tax. I also give myself $10K in employment income, because the first $10K of employment income is income tax-free (you pay CPP still, I think. I pay no EI because I would never lay myself off from my own company). __________________ If you don't pass this sig to ten of your friends, you will become an Oilers fan.