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LemonDrizzle posted:Not less in taxes, less in income taxes. Presumably an investor will be making most of their income via dividends and capital gains. As if they would report those in the first place.
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Feb 17, 2015 02:00
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Sassafras fucked around with this message at 18:27 on Feb 20, 2015 |
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Feb 17, 2015 02:25
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Eavesdropping on a conversion while getting my hair cut. "We just bought a new place and we're redoing the whole condo with new floors and kitchen. We really hope we can sell our old one quickly because we can't afford to pay two mortgages" loving rolleyes
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Feb 17, 2015 02:33
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 Here's Canada's overall household savings rate, by province. All graphs have the same axes for ease of comparison. I don't know the dataset all that well, so I'm going to be careful with regards to conclusions, but the only provinces with a meaningful increase in the savings rate in recent years are those with oil: NL, AB, and SK. The Atlantic provinces with the exception of NL have declined almost continuously. BC's savings rate has been hovering below zero for almost 20 years.
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Feb 17, 2015 04:12
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I haven't owned a car in seven years, it is awesome.
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Feb 17, 2015 04:20
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jet sanchEz posted:I haven't owned a car in seven years, it is awesome. I would love to move somewhere where I could actually pull that off after Im done school. Problem is I loving loathe large cities and thats probably the only place where that works. 
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Feb 17, 2015 05:01
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Cultural Imperial posted:Eavesdropping on a conversion while getting my hair cut. "We just bought a new place and we're redoing the whole condo with new floors and kitchen. We really hope we can sell our old one quickly because we can't afford to pay two mortgages" how bad was your hair cut because you were laughing so hard?
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Feb 17, 2015 05:04
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jet sanchEz posted:I haven't owned a car in seven years, it is awesome. I love both having a car, and not having to use it on any given day. It's the best of both worlds.
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Feb 17, 2015 05:12
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JawKnee posted:how bad was your hair cut because you were laughing so hard? it's terrible because my immaculate SS officer coif is ruined
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Feb 17, 2015 05:20
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PT6A posted:I love both having a car, and not having to use it on any given day. It's the best of both worlds. Yeah this is where I'm at. I'm in 2 community bands and get private lessons on my instrument, and I don't know how I'd manage without a car. Transit times are 1 hour to 1 hour 15 minutes each way from my house in the far northeast of Edmonton to the other side of the river at the times that rehearsal is at, and I'd be lugging around a heavy as gently caress instrument. Compare that to a 20 minute drive each way in a car. If this city had better transit I wouldn't have to worry, but it's god damned awful.
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Feb 17, 2015 05:42
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Furnaceface posted:I would love to move somewhere where I could actually pull that off after Im done school. Problem is I loving loathe large cities and thats probably the only place where that works. Victoria is little and very ped friendly! No jobs here though and almost as expensive as Vancouver, but in my opinion very very different from Vancouver "culturally", it doesn't have the assholes or the ego. About half my friends don't have a car, and of those who do just use the car a couple times a week or in bad weather and will generally bike or walk to where they need to be. In a big city if you don't have a car you have to bus or train everywhere, but here you can just walk because everything is so close.
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Feb 17, 2015 05:51
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And waaay better beaches. Also, the best loving swimming holes that aren't loving hours away and full of human poo poo.
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Feb 17, 2015 05:58
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Baronjutter posted:Victoria is little and very ped friendly! No jobs here though and almost as expensive as Vancouver, but in my opinion very very different from Vancouver "culturally", it doesn't have the assholes or the ego. About half my friends don't have a car, and of those who do just use the car a couple times a week or in bad weather and will generally bike or walk to where they need to be. In a big city if you don't have a car you have to bus or train everywhere, but here you can just walk because everything is so close. I hate using my car in bad weather -- morons are more likely to drive into me, traffic is worse, etc. I use my car in good weather when driving is pleasant, and hoof it during snowstorms and such, because it's actually quite nice if you aren't a massive wuss and it's much less likely to result in expensive damage to my personal belongings and/or injury.
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Feb 17, 2015 06:15
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Cultural Imperial posted:it's terrible because my immaculate SS officer coif is ruined f u for copying my DIY haircut you hipster
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Feb 17, 2015 06:27
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Baronjutter posted:Victoria is little and very ped friendly! No jobs here though and almost as expensive as Vancouver, but in my opinion very very different from Vancouver "culturally", it doesn't have the assholes or the ego. About half my friends don't have a car, and of those who do just use the car a couple times a week or in bad weather and will generally bike or walk to where they need to be. In a big city if you don't have a car you have to bus or train everywhere, but here you can just walk because everything is so close. I hated Victoria as a kid because it's the boring museum city. I love it as an adult because of all the beaches and camping and poo poo that's not too far up-island. and also the museums
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Feb 17, 2015 06:28
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Kraftwerk posted:Wants to live the dream of home rentership but doesn't know if he can afford it. Create an actual budget. Hint: break down your expenses to biweekly amounts. You cannot paint an accurate picture comparing your biweekly pay to monthly expenses, unless it is February every month. I would budget about 300 biweekly for all not monthly expenses. Much less than that and you are going to be one boring mother fucker. You can create a food budget as well but I personally bundle it into the rest of my entertainment budget because we are gluttons who do not mind splurging on ridiculous meals on occasion. If your net income listed above includes contributions to savings, great job. If not.. Start saving money and find a more affordable solution. Room mates might be more palatable to your chickey poos than mom and pops. Personal advice: you are either under 25 or you need to switch insurance providers. gently caress any girl who frowns upon you getting financially stable. I wish I could have worked for a few months to a year living at home, but I moved for my job. I say this at the distinguished age of 26, so obviously I am the authority on sage wisdom. Also don't be dumb like me and get a dog. I walk to work and carry home my Costco bounties  I was going to sell the car but you can't take poo poo on public transit.. So don't get a dog that you can't carry in a lil' crate. Math You fucked around with this message at 13:09 on Feb 17, 2015 |
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Feb 17, 2015 12:54
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EvilJoven posted:Wow, it's like our tax code is written in such a way that once you attain a certain level of wealth you can start exploiting loopholes in order to pay little to no taxes. No, you pay shitloads of tax when you make bank. There are definitely ways to avoid paying some, but paying little to no tax on a large T4 is loving impossible. You'll still be paying more per year than an average person makes. If you're talking about captial gains and dividends, then yes, but you could also argue that only the well to do are paying these taxes. Saltin fucked around with this message at 14:33 on Feb 17, 2015 |
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Feb 17, 2015 13:09
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Saltin posted:No, you pay shitloads of tax when you make bank. There are definitely ways to avoid paying some, but paying little to no tax on a large T4 is loving impossible. You'll still be paying more per year than a average person makes.
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Feb 17, 2015 13:25
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Saltin posted:No, you pay shitloads of tax when you make bank. There are definitely ways to avoid paying some, but paying little to no tax on a large T4 is loving impossible. You'll still be paying more per year than a average person makes. 
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Feb 17, 2015 14:29
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Ya I was definitely not talking about trying to avoid tax on T4 income That's the reason why so many rich people draw 1$ salaries from their companies.
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Feb 17, 2015 14:39
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EvilJoven posted:Ya I was definitely not talking about trying to avoid tax on T4 income No argument on shenanigans like this. I don't know if this happens in Canada, but in the US companies can actually pay less in federal taxes by paying their CEO more (in options and stock), which means taxpayers are subsidizing CEO and top level executive compensation. This is unmitigated bullshit. For example in 2012 and 2013 - the CEOs of the top six publicly held fast food chains pocketed more than $183 million in fully deductible “performance pay,” lowering their companies’ IRS bills by an estimated $64 million. Just in case you need another reason not to eat that poison.
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Feb 17, 2015 14:47
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Maybe I need to hire a better accountant, but I don't think it's really all that easy to dodge taxes by incorporating. Yes, personally, I obviously have a lower tax bill if I pay myself via dividend instead of drawing a salary, but considering I've already paid corporate tax on that money, which I obviously wouldn't have to if I were just making straight income from working for someone else, the total amount of tax paid on that money is strikingly similar -- it's almost like they designed it to work that way, it's so close. Pretty much the only even half-way questionable (from a fairness perspective, not a legal perspective) expenses I use are being able to have the company pay me a bit of rent every month, and being able to use the company to pay a portion of both my cellphone and internet bills. The first reduces my corporation's taxable income by a few thousand at most, and I have to report that as personal income anyway, and having an internet connection and/or a cellphone paid for by an employer are fairly normal anyway, no matter whether you work for yourself or not. If these are the amazing tax advantages I've signed myself up for by incorporating, I'm disappointed, frankly. I incorporated strictly for the liability protection. Unless you're pulling some bullshit that will probably get your pee-pee spanked during an audit (and, to be fair, a lot of business owners do this), you don't really save all that much on taxes at the end of the day, especially compared to what you spend on simply maintaining the legal entity of the corporation. Or at least I don't... maybe I just need to make more money and hire a better accountant.
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Feb 17, 2015 15:18
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Its cute that you're comparing your working class one man IT 'company' and accountant punching numbers into a copy of quickbooks pro self to the actual rich and their teams of accountants.
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Feb 17, 2015 15:26
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I've mentioned this before in this thread: There was a story going around Calgary about an it project manager that had worked for years on contract as an incorporated entity. As such, he didn't draw a salary and claimed capital gains instead at a lower tax rate. The CRA a couple years ago started cracking down on shitheads like this. This guy ended up undergoing an audit, prison rape style and ended up owing something like 300k in back taxes. As an incorporated entity working under contract, you will absolutely get loving raped if you think you're going to pay less taxes than any other permanent employee.
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Feb 17, 2015 15:33
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EvilJoven posted:Its cute that you're comparing your working class one man IT 'company' and accountant punching numbers into a copy of quickbooks pro self to the actual rich and their teams of accountants. See, I don't think this is true. I know the "actual rich" people you're talking about, people who have 7-8 figure net worths that they maintain by running one or more companies, and they sure as gently caress pay a lot of money in tax, both personally and at the corporate level, and they're always worried about the CRA coming for more. One guy told me, "if the CRA comes and says 'you owe us X', and X is any less than $50,000, it's not even worth paying an accountant." I suspect his tax bills are rather high, if that's the case. Are you now going to say, "well I wasn't talking about them, I was talking about giant multinationals?" At least then, I will concede that there are some massive tax dodges you can employ, but I also don't think that's remotely representative of the average rich person or even company-owner. Cultural Imperial posted:I've mentioned this before in this thread: Did they get him for his personal taxes, or his corporate taxes, or the fact that he was working as an employee in everything but name? Just curious. Personally, I definitely like to be safe rather than sorry, even if it means paying extra taxes up front. It's a lot easier to sleep when you know the CRA has no reason to crawl up your rear end and demand more money.
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Feb 17, 2015 15:44
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I buddy of mine wrote 'salary' on his corporate dividend checks, and got ruined during an audit. It is pretty easy to gently caress it up. If you are personally incorporated, the real benefit is being able to write off a bunch of living expenses.
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Feb 17, 2015 15:51
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ocrumsprug posted:If you are personally incorporated, the real benefit is being able to write off a bunch of living expenses. Amen to that, computers and phones for everyone, the office* needs it! *not actually the office
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Feb 17, 2015 15:55
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ocrumsprug posted:I buddy of mine wrote 'salary' on his corporate dividend checks, and got ruined during an audit. It is pretty easy to gently caress it up. "A bunch" is pushing it. Of course, you can write off whatever you like, the real question is: is the CRA going to wreck you if/when it finds out? You must be very careful about that sort of thing, and in some cases you're obligated to pay taxes on those benefits at the personal level anyway as a taxable benefit or somesuch (this is why I hire accountants!) In the short term, the main advantage is no deductions for CPP or EI, but at the cost of not being able to benefit from either one. You'd be a damned fool to not be saving at least the same amount of money on your own that would otherwise be deducted.
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Feb 17, 2015 15:57
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PT6A posted:Maybe I need to hire a better accountant, but I don't think it's really all that easy to dodge taxes by incorporating. Yes, personally, I obviously have a lower tax bill if I pay myself via dividend instead of drawing a salary, but considering I've already paid corporate tax on that money, which I obviously wouldn't have to if I were just making straight income from working for someone else, the total amount of tax paid on that money is strikingly similar -- it's almost like they designed it to work that way, it's so close. This, of course, is where it really helps to have a lifestyle in that 44-89K federal tax bracket. Edit: I pay my accountant through the nose to make sure I don't gently caress anything up. Albino Squirrel fucked around with this message at 16:08 on Feb 17, 2015 |
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Feb 17, 2015 16:00
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PT6A posted:See, I don't think this is true. I know the "actual rich" people you're talking about, people who have 7-8 figure net worths that they maintain by running one or more companies, and they sure as gently caress pay a lot of money in tax, both personally and at the corporate level, and they're always worried about the CRA coming for more. One guy told me, "if the CRA comes and says 'you owe us X', and X is any less than $50,000, it's not even worth paying an accountant." I suspect his tax bills are rather high, if that's the case. I know Canada isn't America but Warren Buffet's secretary etc. It's like CEO pay. Paying a CEO less or removing their golden parachutes won't save a company or balance the budget. However, it would be better for society's psyche.
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Feb 17, 2015 16:09
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Holy poo poo! I knew that they had lowered the corporate tax rates, but I was not aware of how much they had lowered them by. 70% reduction in small business tax rate, and the small business cap was almost doubled (and it used to be be even lower.) 40% reduction in normal corporate taxes. The CPC really are swallowing when it comes to our glorious job creator's BJs. 2.5% corporate tax rate and dividend taxation would be some pretty significant savings over a similar amount of employment income.
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Feb 17, 2015 16:25
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Reminds me of a guy I know who despite having a rather cushy bank job, also set up multiple companies in his name in order to deduct pretty much everything he earns from his real job against vague imaginary business expenses in personal companies that conveniently make no money. I think he claims he gives "financial advice to immigrants" or "general consulting advice" or something through his "companies" but will do things like drive across town to visit friends, claim he takes about finance and write the trip off as a business expense. Like...I know it has to be illegal, but none of us can figure out the exact law and he's convinced the CRA won't gently caress him because "He's just a little guy, they've got bigger fish to fry".
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Feb 17, 2015 16:29
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I just assumed that the bigger fish were too big to fry 
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Feb 17, 2015 16:30
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Cultural Imperial posted:Eavesdropping on a conversion while getting my hair cut. "We just bought a new place and we're redoing the whole condo with new floors and kitchen. We really hope we can sell our old one quickly because we can't afford to pay two mortgages" Just home for family day weekend: My mother's done everything imaginable to her 15 year old house. Refinished almost every bathroom (heated floors LOL), put wood flooring down, automatic window blinds, swapped out the furniture 2 or 3 times. Now she's about to redo the perfectly fine ceramic kitchen tile just to "update" it. She explained it'll be difficult because "she'll have to turn her life upside down and the labourer she hires is just so unreliable." Then I showed her how to plan one of her two annual $5000 vacations using AirBnB and Hipmunk because she's "tired of all-inclusives." I'm definitely one of the "waiters" (though she may be hideously in debt, so there may be nothing to wait on). This is on top of taking my 7 year old brother to every concert and Disney on Ice that rolls through town and buying him so many toys they have now taken up a solid half of the family room. Boomers: they angry up the blood.
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Feb 17, 2015 16:31
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Mr Luxury Yacht posted:Like...I know it has to be illegal, but none of us can figure out the exact law and he's convinced the CRA won't gently caress him because "He's just a little guy, they've got bigger fish to fry". You mean he's just big enough to not bother. The CRA has it all figured out, you make tons more by going after the small, self-employed owners and piling up ludicrous charges for the slightest mistake in their tax declaration. CEOs and big corporations shunting all their money into tax havens, that's not worth bothering with.
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Feb 17, 2015 16:34
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Mr Luxury Yacht posted:Reminds me of a guy I know who despite having a rather cushy bank job, also set up multiple companies in his name in order to deduct pretty much everything he earns from his real job against vague imaginary business expenses in personal companies that conveniently make no money. I think he claims he gives "financial advice to immigrants" or "general consulting advice" or something through his "companies" but will do things like drive across town to visit friends, claim he takes about finance and write the trip off as a business expense. He's probably right on the last point, but if you're going to lie, why even bother making up a half-truth? If the CRA does find him, they aren't going to give a poo poo whether he lied 80% or 100%, they'll gently caress him and they'll gently caress him hard. One of my idiot friends does this -- we talk about business for five minutes in passing, and he'll write off the meal and drinks. I, myself, do not, because I know this is a really excellent way to end up getting hosed by the long metaphorical cock of the CRA. I've written off precisely one meal in my life, and it was intended solely as a meeting from the get-go. For the 50% write off, and the incredibly confusing rules that surround it, it's not worth my time to possibly get one over on the government, when the odds are much greater they'll end up getting the money they're entitled to anyway.
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Feb 17, 2015 16:35
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Jan posted:You mean he's just big enough to not bother. The CRA has it all figured out, you make tons more by going after the small, self-employed owners and piling up ludicrous charges for the slightest mistake in their tax declaration. CEOs and big corporations shunting all their money into tax havens, that's not worth bothering with. In terms of "random" audits, your odds of being audited as a small owner-operated company will see you, all other things being equal, being audited about once every century. Provided you don't do anything that causes the CRA to red-flag your return, your chances of being hosed with are very low indeed, and where there's smoke, there's usually fire. Just keep records properly, and don't try any shady bullshit, and even if you get audited, you'll be fine. The CRA is merely a very efficient agency with a goal: they want the money they're owed, nothing more, nothing less.
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Feb 17, 2015 16:40
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The thing is though, if they audit him on his personal taxes isn't he going to have to explain by extension his shady "businesses" he's claiming deductions from? And aren't random personal audits more likely? I mean hell, I was sorta audited three of my first five years of paying income tax because for some reason they kept not believing I was a student 
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Feb 17, 2015 16:47
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Mr Luxury Yacht posted:The thing is though, if they audit him on his personal taxes isn't he going to have to explain by extension his shady "businesses" he's claiming deductions from? And aren't random personal audits more likely? He's probably not claiming any business-related deductions on his personal taxes though, so I doubt it. He's probably claiming all that dodgy poo poo as a way of reducing the taxable income of the corporation while spending money on himself, instead of trying to reduce his personal tax burden. I'm not 100% sure, though.
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Feb 17, 2015 16:54
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EvilJoven posted:working class one man IT 'company' Working class IT. We find ourselves in a brave new world, comrades.
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Feb 17, 2015 17:13
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