Taxes taxes

[Hopperbin]

I think the reason I stayed was because I have learned a lot. The guy comes out to the farm and will answer any questions I have. And I also have my taxes done probably first one in Western Canada haha. And your right I did start that thread at that time. Even though I have expected much more from FBC than I have received just because I did drop 9 grand to them just a couple weeks ago I think I deserve much more than I get. These tax issues are really big issues and just wish someone or an accountant would just through this info at me instead of me having to ask the questions first. Its like getting blood from a stone some times. Sask. thanks very much for your input. As far as my accountant was concerned was that 400 grand was the change to higher tax rate and that is one thing that I am very concerned about. As far as I know RESP's are not tax deductible yet are they? Well I have to ask now. But I thought I was pretty clear on the corp paying non illegible dividends. Non Eligible div. are tax free to the receiver. But they are definitely taxed to the corp. And they are added to the net income of the corp. gross income minus expenses plus the non eligible div. is what the corp must pay in income taxes.

[Hopperbin]

$9000 grand eh? Wow, when they stopped at my place many years ago, it was an outrageous amount of money also...and then they want it all up front as well. Sorry Hopper, your being hosed, I think last year it was around $3500 but I think D. Moore from MNP would be at my place unlimited and at anytime for $9000. At least I know I wouldn't be in the frustration that you are, sorry for that and hope you get through it.

But the facts are that for $9000 you are getting:

a) To ask questions on Agriville and receive advice from a whole bunch of successful farm operators for free
b) incorrect advice if FBC doesn't know that the small business limit is now
$500,000 in 2009
c) More incorrect advice if they have not explained to you that paying a dividend doesn't change your corporate
d) An incorrect tax return preparation if they are "adding" the dividend to your bottom line
e) No forward looking advice. You won't be getting that for sure. You might be getting a meeting early January but filing and assessing of tax returns are probably not sent for many months after. If they are doing what they should be doing then they would have asked at least your 5 year goals and forseen that retirement was on your mind and these questions would arose. Remember, no Charterted accountant (or paper shuffler when referring to FBC)can read minds.

RESP's are not tax deductible

Non eligible dividends will basically be tax free if it is your only source of income and the dividend amount is only about $35,000 for that year. After that you pay the incremental rate difference between the corporate rate and your personal tax rate. In 2009, a $60,000 dividend will cost about $5500 if that is the only item on your tax return.

I would still question why you would only tax dividends if your income is as high as you claim. I think you would be better taking a $40,000 or $50,000 wage to you and your spouse and make use of at least the low tax bracket personally as well. But I guess $9000 gets you that as well...