(604) 830-2438

 

PASSIVE INCOME RULE

A Canadian-controlled Private Corporation (CCPC) that earns active income through their operations can claim the small business deduction and net their rate rate to 9%.

So, it’s natural for a business owner to think they get to enjoy the same 9% tax rate on real estate investments, but hold on there, the government closed that loophole a long time ago.

Passive income earned by a CCPC is taxed at 50%.

When a CCPC earns passive income, most business owners declare a dividend as the most tax efficient way to receive the money.

Every $2.61 of taxable dividends payable produces $1.00 corporate tax refund, referred to as Refundable Dividends Tax On Hand (RDTOH).

 

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SELF-DIRECTED RRSP/TFSA

A self-directed RRSP/TFSA account is held outside of a bank or credit union.

This is not a brokerage account where investors can buy and sell stocks on platforms such as RBC Direct Investing, CIBC Investor’s Edge, TD Direct Investing, Scotia iTrade, or BMO InvestorLine.

A self-directed account enables eligible investors and accredited investors to invest in a greater range of investment products such as exempt market securities, syndicated mortgages, mortgage investment corporation shares, and private mutual fund trust units such as the OCMI Mutual Fund Trust.

July Ono.

 

T3 SLIPS

T3 Statement of Trust Income Allocations and Designations is mailed out at the end of March each year. 

This tells you how much you received from non-registered accounts.

Remember that you can also get the T5 slip directly from your online CRA My Account.

T5 SLIPS

T5 Statement of Investment Income is mailed out by the end of February each year.

However, keep in mind that these tax slips can also be uploaded into an investor portal.

And some organizations will e-mail a password-protected T5 slip that usually includes the last few digits of your social insurance number. 

Call the organization if you have not received your T5 slip by the end of March.

APRIL 30: TAX DUE DATE

April 30th is a Tuesday and the deadline date to not only file your personal income tax return, but pay any outstanding amounts due.

June 15th is the tax filing deadline for self-employed earners.

You will be charged a 5% late filing penalty plus 1% for each month the return is delayed up to 12 months.

After that, the penalty goes up to 10% on the balance owing and 2% per month up to 20 months.

Did you know that you can request relief from interest and penalties if you are unable to pay? CRA can only grant relief within 10 years of the request date.

TFSA CALCULATOR

The Tax-Free Savings Account (TFSA) was introduced in 2009 to help Canadians save for retirement without incurring tax on the earnings inside the TFSA.

The contribution limit started off at $5,000 per year and the amounts vary year to year.

If you have never set up a TFSA investment, then your lifetime contribution limit is $95,000.

The interesting part is when the investment inside your TFSA increases dramatically, like when a real estate investment is sold inside a private mutual fund trust, and the profit is distributed back into the TFSA account, your investment limit increases to the amount inside your TFSA plus the annual contribution limit. 

This is one wealth building strategy through optimizing your TFSA.

This video explains TFSA contribution and what happens when you withdraw money.

WHY INVEST IN REAL ESTATE?

Long-Term Security

Real estate is a long-term investment, meaning you can hold it for several years as you wait for it to appreciate. At the same time, if you rent out your real estate you can earn monthly income while you wait for your property’s value to rise.

About July Ono.

JulyOno.com is a marketing platform for a real estate investment company. We have been actively involved in the Lower Mainland area real estate investing for a number of years.  Our mission is to provide local housing and commercial workspace to quality tenants while at the same time providing an above average return on investment (R.O.I.) for our investor partners and for ourselves. It is truly a win-win-win way of investing!

July offers her investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact July Ono.

For more information about July and her investment program, please call (604) 830-2438 and email her at july@julyono.com or visit https://julyono.com/