bullshit user fees and taxes

[3ml]

Like I said, the main advantage is to be able to defer paying tax, not getting around it completely. Real Estate corporations are even worse, and yes they have designed it so that owning as a sole proprietor is equal to a corp when owning property. Again tho, it does allow you to defer. Passive income inside a Real Estate corp is taxed at 50%. 30% is held in a ROTOH account, which you claim back when you claim Dividends tho. If you get big enough, there are some loopholes you can explore. If you employ 5 people, you only pay 15% tax, not 50%, as well you can start a property management corp so that it can charge your holding corp fees for "managing". Property management corps only pay 15%. Again, you're correct that there aren't huge advantages but any penny you keep is a penny out of Justin's hands.

There is a decent book you can read called Canadian Real Estate Investing by Cherry Chan. It's an easy read and taught me a few things, kinda like a tax guide for dummies, lots you'll probably know but still worth the $15 if you like reading.

I do like reading. I almost think I have that book.

Taxed are very personal. In my situation I am a consultant and sometimes have someone I bill out for other work. So in my particular situation I want to show alot of income to get financed for property. This is what my mortgage broker and accountant have come up with for now. I eventually aim to move the property into its own entity or entitites. The structure of which is not determined yet.
I think once the snowball gets big enough I can scale back in salary pay and take more dividends, because yes a penny saved is and out of JTs hands is a massive victory!

 

[Sorbate]

I think it's just under 7k last year not sure but we pay it both sides since we are slef employed. It's alot and I feel I could do much better with the money on my own. Hell my stock portfolio was up almost 40% in 2023. I don't need anyone to manage my funds.

Mine went up the same, last 3 months before Christmas, lol. Watch shit drop in the next few months like other years are any predictor.

I don’t have the knowledge to invest myself, plus I hate numbers, they confuse me. I am damn good at figuring out how to make money though, so I stick with what I know.

And yes, even in a 5% interest account we likely would be better off, lol.

 

[Sorbate]

Here is a bullshit fee
$93 to register a vehicle. WTF.
So you charge me 93$ for what. To keep track of wether or not I paid it and a tiny bit of Data like VIN, license plate #, address....what a fucking joke.

No registration fee in Ontario anymore.

 

[3ml]

Mine went up the same, last 3 months before Christmas, lol. Watch shit drop in the next few months like other years are any predictor.

I don’t have the knowledge to invest myself, plus I hate numbers, they confuse me. I am damn good at figuring out how to make money though, so I stick with what I know.

And yes, even in a 5% interest account we likely would be better off, lol.

Might see some volatility but I think overall it will be a good year. But who the fuck knows really. I really don't like CPP since you aren't in control of the money. If you don't have a wife to leave it too the government keeps it. And like you said a 5% interest account would probably be better

 

[Sorbate]

I do like reading. I almost think I have that book.

Taxed are very personal. In my situation I am a consultant and sometimes have someone I bill out for other work. So in my particular situation I want to show alot of income to get financed for property. This is what my mortgage broker and accountant have come up with for now. I eventually aim to move the property into its own entity or entitites. The structure of which is not determined yet.
I think once the snowball gets big enough I can scale back in salary pay and take more dividends, because yes a penny saved is and out of JTs hands is a massive victory!

Talk to your accountant about spreading. I believe that everything you own (corporation wise)is lumped under one now (well has been for years) for taxation purposes, so all you may be doing is paying multiple times to file your taxes.

I believe for me, I’d only save maybe 2% taxes under a dividend because of the bracket I’m under. In a cash based business if one chooses you can save a lot of tax if you wish.

 

[Sorbate]

Might see some volatility but I think overall it will be a good year. But who the fuck knows really. I really don't like CPP since you aren't in control of the money. If you don't have a wife to leave it too the government keeps it. And like you said a 5% interest account would probably be better

Yeah the part about losing it if you don’t have a legal partner is bullshit. You paid in, you should be able to will it as a lump sum, even if it’s lets say 70% value.
Mind you I think the money is all gone, that’s why they are likely freaking about Alberta wanting their share.

 

[3ml]

Talk to your accountant about spreading. I believe that everything you own (corporation wise)is lumped under one now (well has been for years) for taxation purposes, so all you may be doing is paying multiple times to file your taxes.

I believe for me, I’d only save maybe 2% taxes under a dividend because of the bracket I’m under. In a cash based business if one chooses you can save a lot of tax if you wish.

You very well could be right. Everything I thought I knew and how I wanted to structure things he said would have been viable before but many things have changed

 

[3ml]

Yeah the part about losing it if you don’t have a legal partner is bullshit. You paid in, you should be able to will it as a lump sum, even if it’s lets say 70% value.
Mind you I think the money is all gone, that’s why they are likely freaking about Alberta wanting their share.

Agreed!!! If JT is against it then it's good for Alberta

 

[Broseidon]

My accounting prof recommended

Me and the wife own a small business we run out of our home.. It's small (for now), like 10k sales a year..

Got a letter today saying I need to pay for a small "business liscence". The fee would go to my county.. I friggin live in a town of less than 6k people.. Our councellors are in the top 5 highest paid counsellor's in all of Alberta.

I know lots of our counsellors personally and they all bitch about federal taxes, new taxes like netflix tax, etc.. They all personally hate how much fees and taxes have gone up in the last 8 years..

These same fuckers passed a new bi law for a business liscence here.. They make more then 95% of any counsellor in Alberta, hate new fee/taxes and than they pass this new bi law on..


I'm so sick of user fees and bull shit taxes..

Just move to a country that fucks with you less?

 

[animal-inside]

I got a letter and another statement saying I still owe the money and I will be charged 1.5% interest each month if it's not paid.

Fucked thing is, the county office ONLY knows I have a business because I paid the fee last year when they first made the by-law..Any business that did not pay the lis fee last year did not get a bill because the county doesn't have a record of them owning a business. I checked with the couple ppl I know who have a small business, but didn't pay last year.. they got no letter..

 

[Sorbate]

I got a letter and another statement saying I still owe the money and I will be charged 1.5% interest each month if it's not paid.

Fucked thing is, the county office ONLY knows I have a business because I paid the fee last year when they first made the by-law..Any business that did not pay the lis fee last year did not get a bill because the county doesn't have a record of them owning a business. I checked with the couple ppl I know who have a small business, but didn't pay last year.. they got no letter..

Well the lesson you learned here is sometimes you gotta play stupid, lol.
I did the same with the inspector at the start, they didn't know I made dry cured sausage, one day I mentioned it and damn that opened a can of worms for me, like 10 protocols later another inspection to make sure I was doing it right and so on.

Now with minor things, I figure its better to play stupid and beg for forgiveness after.