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Shared Ownership Strategies A Tax Efficient Gift for Incorporated Businesses

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Many of my clients are incorporated. They may have very different jobs (doctors, engineers, farmers, etc), but they often have the same priority… that is, “How can I extract cash out of my corporation, and flow it to myself personally, as tax-efficiently as possible?” As we’re in the holiday season, please let this be my gift to you…

Canadian-owned incorporated businesses may be eligible to implement a strategy that is an effective and innovative way to protect their business and also benefit from tax advantages for the company and for the shareholders. Without going into too much detail here, in the right situation, there can be a way we use a shared-ownership agreement to help transfer trapped retained earnings in the corporation and flow it to the individual in a very tax-efficient manner.

While other advisors may suggest a similar approach, I’ve seen it many times over my 20+ year career where a strategy has been attempted, but the implementation has been ineffective and the structure ends up being at risk of being offside in the eyes of CRA. It is therefore of utmost importance that these arrangements be crafted by an expert team that has specialized knowledgeable and experience. We have protocols in place to ensure we use the right dollar amounts and provide as much flexibility as possible.

We work with our incorporated clients (along with their accountants and lawyers) to determine if this type of plan may be appropriate for them. We then tailor a customized proposal to show how we can help maximize tax and financial benefits. If this sounds like something that could be of value to you (or to someone you know), please reach out to discuss further. My team and I would be happy to review if this might be an appropriate solution for you and your company.

Hopefully everyone is able to enjoy some time off with friends and family. We wish you all the best in the New Year and may it be full of good health and good fortune. Happy holidays!

-Ryan Secord, B.Comm (Hons), CIM®, CFP® Senior Investment Advisor,

Ryan Secord is a Senior Investment Advisor at Endeavour Wealth Management with iA Private Wealth Inc, an award-winning office as recognized by the Carson Group. Together with his partners he provides comprehensive wealth management planning for business owners, professionals and individual families.

This information has been prepared by Ryan Secord who is a  Senior Investment Advisor for iA Private Wealth Inc. and does not necessarily reflect the opinion of iA Private Wealth. The information contained in this newsletter comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors. The Senior Investment Advisor can open accounts only in the provinces in which they are registered.

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