Capital gains, dividends, interest and foreign tax credits can become complex. Ensuring that your tax advantageous filings are used where suitable (i.e. stock options, allowable business investment loses, capital gain exemption) is highly important when structuring your investments to earn one type of income over another (i.e. capital gains vs. dividends). Additionally, knowing which investments attract less tax and can be used as a deductible for tax purposes is equally significant (i.e. investment loans).
When investing, avoiding all complications with the CRA is a must. Often times, the CRA will expect the income to be split between taxpayers regardless of whether the taxpayers contributed equally to the underlying investment. If you have joint slips (T5 and T3), it is advisable to have the taxpayers returns prepare together.
There are countless strengths and weaknesses for investors. Let Numbers Plus® inform and guide you in the right direction. Let our team of experts work hard to prepare your returns, deal with the CRA and most importantly, provide you with options for smart investment choices.