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  • Tag: Income Splitting

    A window of tax saving opportunity is closing.

    We have written before about the “unprecedented window of opportunity” for wealthy families to save tax as a result of CRA’s historically low 1% rate on prescribed rate loans.  See our blog post A window of tax saving opportunity…for how long? The prescribed rate dictates the minimum interest that must be charged on income-splitting loans to spouses and family trusts. A popular, low-risk form of tax planning with many of our clients.

    Truth be told, when we wrote that blog piece back in 2010 we didn’t expect the 1% rate would still be in effect in 2013. And from what we hear, it won’t be much longer. [read more >>]

    Newport’s “Top 10″ over the last 10

    This year marks a milestone for Newport as it was ten years ago this month that we launched the company…one that we envisioned would be a home for successful entrepreneurs and other high net worth families to invest with professionals and access trusted advice on all wealth management matters. On behalf of everyone at Newport, thank you to our 600 families we serve across the country and to the friends of the firm for contributing to our vision and helping to make the dream a reality. It has been a privilege which we do not take for granted.

    [read more >>]

    A window of tax savings opportunity — for how long?

    CRA announced this week that it will maintain its 1% prescribed rate through to June 30th.

    While that news didn’t make headlines, from a tax point of view it should have.

    After RRSPs and tax deductibility of interest, I think a prescribed rate income splitting loan is the most effective way for wealthy high income earners to reduce their tax bill.

    And a 1% interest rate offers an unprecedented window of opportunity.

    [read more >>]