๐‘๐ž๐ฏ๐ข๐ž๐ฐ ๐ฒ๐จ๐ฎ๐ซ ๐’๐ก๐š๐ซ๐ž๐ก๐จ๐ฅ๐๐ž๐ซ ๐‹๐จ๐š๐ง ๐š๐ฆ๐จ๐ฎ๐ง๐ญ. ย 

Although this is common sense it often is overlooked as part of an overall financial plan as a way to get money out of a corporation.

If you have a Shareholder Loan Credit, take advantage of withdrawing that amount tax-free from the corporation.

This will be a 100% tax-free transaction for you and it will help you in two different ways:

(1) If this money is invested in the corporation, it will be earning Passive Income and contributing to your Passive Income Clawback. ย This is going to be your huge tax saver if you are a high passive income earner. ย โœ…

(2) Passive income within a corporation will initially be taxed at 50.2% in Ontario. ย 

Most people are in a lower tax bracket so by investing the monies personally opposed to inside the corporation, you will also save on the tax on the growth of the assets. ย โœ…