Category Archives: Health Professionals

First Income Tax Return after Completing Medical Residency

Originally posted on The Medical Accountant:
Transitioning to medical practice from residency is a big step. Completing the requirements of the program, writing certification exams, finding work, getting licensed, applying for hospital privileges, setting up CMPA coverage, etc.  There is…

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BC Physicians – BCMA CPRSP Deadline – January 20, 2014

The deadline to make an RRSP contribution for a deduction on your 2013 personal income tax return is March 3, 2014. However, the deadline to submit your claim for a CPRSP benefit payment to be deposited to your RRSP by March … Continue reading

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Save More with a Professional Corporation

Like the TFSA and RRSP, the professional corporation is an important tool for investing and saving. By incorporating your practice or business and investing unused funds within the corporation, you will end up with significantly more money in the future … Continue reading

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Using a Professional Corporation for Investing

There are several income tax advantaged investment vehicles in Canada, the best known being the Tax Free Savings Account (TFSA) and the Registered Retirement Savings Plan (RRSP).  Using these tools for investing gives you more funds in the future compared … Continue reading

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Financial Blog for BC Physicians

The aim of this blog is to provide accounting, tax and financial information for various professionals. However, much of the information has been geared towards physicians. While a lawyer or dentist will be interested in articles on tax planning and … Continue reading

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Incorporation Benefit – Tax Deferral

Because a company is taxed at a much lower rate on business income than an individual, there is the potential for a large tax deferral. Consider a professional who earns $300,000, but only needs $200,000 before tax for personal use. … Continue reading

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Income Splitting With A Professional Corporation Can Save You Thousands

Income splitting with wages can save you thousands of dollars. Income splitting with dividends from a professional corporation can save you tens, even hundreds, of thousands of dollars. My last post explained how income splitting works. In this post, I am going to provide examples of the … Continue reading

Posted in Architects, Business Professionals, Businesses, Chiropractors, Dentists, Doctors, Engineers, Health Professionals, Income Tax, Incorporation, Lawyers, Medical Residents, Mortgage Brokers, Optometrists, Professional Corporation, Realtors, Veterinarians | Tagged | 11 Comments

BCMA CPRSP Deadline – January 21, 2013

The deadline to make an RRSP contribution for a deduction on your 2012 personal income tax return is March 1, 2013. However, the deadline to submit your claim for a CPRSP payment to be deposited to your RRSP by March 1 is … Continue reading

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Transition to Practice Workshop for BC Medical Residents

I just conducted a workshop for the Professional Association of Residents of British Columbia (PAR-BC) on transitioning to practice for medical residents. We covered a range of topics including: Professional and Personal Registration Practice Alternatives Business of Medicine Income Tax Considerations Incorporation I … Continue reading

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Incorporation Benefit – Income Splitting

In my ongoing series on professional incorporation, I’ve discussed what a professional corporation is (a distinct legal entity) and which professions allow incorporation (doctors, dentists, lawyers and realtors among many others). I’ve shown how the lower corporate tax rates can assist a … Continue reading

Posted in Architects, Business Professionals, Businesses, Chiropractors, Dentists, Doctors, Engineers, Health Professionals, Income Tax, Incorporation, Lawyers, Medical Residents, Mortgage Brokers, Optometrists, Professional Corporation, Realtors, Veterinarians | Tagged , | 1 Comment

Incorporation – Taxation of Salary and Dividends

In my last post, I discussed the lower tax rates on professional income earned in a corporation. In BC, any professional income that you earn personally in excess of $132,000 is taxed at 43.7%.  In a professional corporation, the first $500,000 … Continue reading

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2012 BCMA CPRSP Entitlement

The British Columbia Medical Association (BCMA) has recently released the 2012 entitlement amounts for the Contributory Professional Retirement Savings Plan (CPRSP). If you are an eligible physician in British Columbia, you should have received notification of your entitlement. The BCMA will … Continue reading

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Incorporation Benefit – Lower Income Tax Rates

As I noted previously, there are several benefits to incorporating your practice. One of the greatest advantages of a professional corporation is access to lower income tax rates. In Canada, we have a progressive tax system.  As you earn more … Continue reading

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Professional Corporations – Why Incorporate?

In my last post, I discussed which professions can incorporate in British Columbia. But why would you want to incorporate your practice? Because the other doctors or dentists in your clinic have incorporated, or the other lawyers in your office have … Continue reading

Posted in Architects, Business Professionals, Businesses, Chiropractors, Dentists, Doctors, Engineers, Health Professionals, Income Tax, Incorporation, Lawyers, Medical Residents, Mortgage Brokers, Optometrists, Professional Corporation, Realtors, Veterinarians | 1 Comment

Professional Corporations in British Columbia

What is a professional corporation? A corporation is a separate legal entity. It can earn income, enter into contracts, purchase real estate, investments and other property, and pay taxes. There are two main types of companies in Canada. A public company generally … Continue reading

Posted in Architects, Business Professionals, Chiropractors, Dentists, Doctors, Engineers, Health Professionals, Incorporation, Lawyers, Medical Residents, Mortgage Brokers, Optometrists, Professional Corporation, Realtors, Uncategorized, Veterinarians | Tagged , | Leave a comment