Is it time to rethink your investment portfolio mix?
Maybe or maybe not. But it is worth looking at where the investments are held.
Suppose you have investments in three places: personal, RRSP, and a holding company. Each portfolio is similar.
Capital gains in the holding company are all taxed at the ⅔ inclusion rate. An individual gets $250,000 per year at the ½ rate. So, reposition the portfolios. Focus on earning capital gains personally, interest income in the RRSP and primarily dividends in the holding company. That will maximize the tax efficiency of your holdings.
Simple to do and easy to carry out.
Each year, we put on a Tax Seminar Series with important updates and tax planning ideas. It has been attended by thousands of CPAs over the years. Most repeat year after year.
Find out how you can register and learn new tax planning ideas like those above for capital gains.