Estate Tax Planning Mississauga
We all want to make sure the next generation has it better than us. This doesn’t get better by hoping, it gets better by putting in place a proper plan. Having a business succession or estate plan will help reduce tax liability.
Reputable Mississauga Accounting Firm
Farrukh Ahmed, CPA has been providing tax planning services to people in Mississauga and Brampton for over 27+ years.
Business Succession Plan
Passing down business and estate is an important financial decision. You don’t want to wait until the last minute to transfer your assets. A transfer will result in taxable capital gain at the current fair market value of the assets. There are strategies that can be used to minimize tax liability like setting up estate tax freeze or spousal rollover.
Chartered Professional Accountant.
Get the confidence of being back by a competent and reliable CPA. Farrukh works 1-on-1 with clients and has an open line for consultation whenever you may have a question.
Why Estate Planning is so important
Many people come to Canada and United States of America for a better future, not just for us but for our children. The goal is so that each generation is better off than the previous. They learn from our mistakes and are the beneficiaries of our labor. The goal of estate planning is to choose who will inherit your assets. There are legitimate ways of estate planning that can be taken to reduce taxes payable. Having a well thought out succession plan can also save the family from the ugly legal battles of the family business and/or property and other assets.
What is spousal rollover?
Having a spouse or common-law partner at the time of death does not eliminate tax but it does allow you to defer tax to future date. Funds are rolled over to the spouse’s account where he/she will become the new owner. The spouse can elect to opt-out of the automatic rollover if he/she chooses to.
What is an estate freeze?
An estate freeze is a common strategy using for estate planning whereby the current owner locks in current value and tax liability and transfer future growth to a family trust account (can be used for multiple beneficiaries), another capital property, or another person. This is an effective strategy that can utilized well before the individuals death and the owner retains full operating power of the vehicle.
What is income splitting?
You can hire your spouse or family to work in your business. The hiring process should be formal with the regular contracts you would give to regular employees. As long as the payments are reasonable for the amount of work completed this is a legitimate tax saving strategy. The onus is on the business owner to show that amounts paid is for work actually completed and to follow proper payroll procedures.
Farrukh’s Tax Tip For Estate Planning
Tax Free Saving Account (TFSA)
These are four things are not taxed in Canada. Putting as much money as you can into these four asset classes will minimize tax on the estate.
Farrukh has been my accountant for at least the last twenty years. He has done an excellent job of assisting me in managing both my business and personal finances. His work has always been accurate and timely. His guidance over the years has been most instrumental in my success. Perhaps most important, he is always willing to answer my questions and provide guidance in a caring and pleasant manner. He genuinely cares.
There’s a notable difference in hiring a new or inexperienced accountant versus one that’s been in the game for 27+ years. I’ve worked as CRA auditor for few years early in my career. Currently teaching tax software to students at Sheridan college, and am a certified professional accountant. This is not to brag but to give you the confidence to realize that you’re in good hands.