Ep 28: The Surplus Stripping Tax Strategy for Business Owners | Tax Expert Kim Moody
Are you an business owner or incorporated professional with "healthy" retained earnings? This episode is for you!
We are joined by Kim Moody, author, one of Canada's leading tax experts, and CEO of Moodys Private Client and Moodys Tax.
Kim’s primary area of expertise is tax and estate planning for owner-managers of private corporations and executives, particularly those who have entered into the tax complexities that come with being affluent.
Mehul and Kim get into the nitty-gritty details of surplus stripping and Kim shares his view on what entrepreneurs need to look out for when considering the strategy.
In this episode, you will learn about our the Canadian Tax system, the difference between dividends and capital gains, and what to do with your retained earnings. Kim does not hold back and it is refreshing for someone in his position to "tell it how it is"!
Highlights:
[01:56]How did he get into the World of Tax?
[09:39]Accounting 101: Surplus Stripping and Dividend
[17:18]The history of capital gains tax in Canada?
[19:06]How to Pay Yourself: Salary and Dividend
[28:05]2017 Proposal on Surplus Stripping
[40:07]Increasing Inclusion Rate: Potential Consequences
[44:02]Long-Term vs. Short-Term Capital Gains: What's the difference?
[44:13] The Idea of Having a Tiered Capital Gains Rate
Links:
Website:https://moodysprivateclient.com/
LinkedIn:https://www.linkedin.com/in/kimmoody/?originalSubdomain=ca
Facebook:https://www.facebook.com/MoodysTax
Twitter:https://twitter.com/MPCLLP