Tax Planning

Life Insurance for Tax and Estate Planning

A few months ago I was in Palm Springs for a reward trip/insurance conference. It was a lot of fun – some friends and I toured the San Andreas fault! [click to continue…]

What To Do with My Severance?

Several of my clients work at the federal government which is offering a one time lump sum offer to replace the retiring lump sum when they retire. The money can roll into an RRSP (if you have the contribution room) and therefore avoid taxes until the money is withdrawn in the future. [click to continue…]

Reducing Your Taxes by Income Splitting

In Canada, we have a progressive tax system. That means that as your income rises, the increased income amounts have higher tax rates. You can think of it as a stair case. On your first step (the first ~$37,000) in BC you’ll pay about 20% tax, the next step up, (around $7,000) pays tax at about 23%, the next $32,000 you make pays tax at about 30% etc. and so one. For any income over $150,000 in BC it will be taxed at 45.8%. Here are the BC tax rates in 2014 from the CRA website: [click to continue…]