Accountants are continually challenged by the creativity in the design and marketing of investment products and strategies. With the introduction of new products, questions often arise regarding the taxation of the income component. This half-day seminar will explain the application of income taxation to various investment products to assist in the preparation of personal and corporate income tax filings, the analysis of owning portfolio investments personally vs. corporately, and introduce the participant to after tax comparisons of alternative investment strategies.
In addition, with the 2018 Federal Budget introducing details on the taxation of corporate owned passive investments, the seminar will look at the proposals in detail, including a review of the impact on the ability of a corporation to claim the small business deduction and the two pools of refundable dividend tax on hand (RDTOH).
By the end of this course, participants will be able to:
Understand the implications of the passive income proposals on the small business deduction
Understand how the two pools of RDTOH will operate, and the impact on integration
Calculate the income for income tax purposes from portfolio investments
Compare the taxation of various investment products and determine how that taxation affects the after-tax return
Advise clients on the income tax implications of diverse portfolio investment products
A review of the passive income proposals from the 2018 Federal Budget, including any additional details, such as revised draft legislation, provided before completion of the course update.
Investment income taxation – general rules, including:
Canadian source income from property
Dividend tax credit
Foreign source income/tax credits/treaty exclusions
Special treatment – charitable donations/other transfers
Deposit accounts: bank accounts; term deposits; GIC/GIA
Shares: common, preferred, flow through; reorganizations; puts and calls; and private company shares
Bonds: conventional (nominal); real return or inflation indexed; stripped; premium and discount bonds
Treasury bills: exchange traded funds (ETF); real estate investment trusts (REIT); specified investment flow through trusts (SIFT); limited partnership
Mutual funds: trust; corporate
Life insurance: accumulation policies; segregated funds
Registered funds: RRSP, RRIF, LIRA, LIF; TFSA; RESP; RDSP; and planning a retirement portfolio
WHO WILL BENEFIT?
Practitioners, investors and other advisors who would like to further understand the passive income proposals and to enhance their knowledge of the taxation of income from portfolio investments.
Participants should have familiarity with the existing tax rules in the Income Tax Act.
Time: 02:30pm - 6:15pm
Passport - ½ Day