Calgarypuck Forums - The Unofficial Calgary Flames Fan Community - View Single Post

DJones · 01-22-2019, 05:30 PM

Don't max out CPP! Terrible return. I can't believe your accountant didn't tell you to give your head a shake.

Pay yourself like $15,000 in wages and pay the minimum CPP that you can to get credit for the year. The key is to trick the formula into thinking your poor, the return skyrockets.

Otherwise, there are other deductions that are only useful against Earned income, and depending on your savings strategy, RRSP limits may be important. Very situational though.

Also it is important to learn about shareholder loans, and what you can and cannot do.

01-22-2019, 05:30 PM	#8
DJones First Line Centre Join Date: Apr 2014 Exp:	Don't max out CPP! Terrible return. I can't believe your accountant didn't tell you to give your head a shake. Pay yourself like $15,000 in wages and pay the minimum CPP that you can to get credit for the year. The key is to trick the formula into thinking your poor, the return skyrockets. Otherwise, there are other deductions that are only useful against Earned income, and depending on your savings strategy, RRSP limits may be important. Very situational though. Also it is important to learn about shareholder loans, and what you can and cannot do.