Category Archives: Income Tax

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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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

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

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

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

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 , , | 3 Comments

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

Incorporation for Physicians – Information for Medical Residents and Doctors

Incorporation is a term most physicians and other professionals are familiar with, but may not fully understand. Almost every physician knows someone who has incorporated, is thinking about incorporation, or has been advised to incorporate. But what is incorporation? Why incorporate? When? … Continue reading

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BCMA T4A Slip and Income Tax Returns

It’s tax time, and I’ve been getting lots of questions from doctors about their T4A slips. Each year the British Columbia Medical Association (BCMA) issues T4A slips to physicians who have participated in the benefit programs administered by the BCMA. … Continue reading

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2011 BC Personal Income Tax Calculator

I have a confession. I don’t know much about programming. Why would I? I’m an accountant. I know about spreadsheets and taxes and financial planning. Not programming. Thanks to Microsoft Office Web Apps, I don’t need to be a programmer. I … Continue reading

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Employee Gifts

With Christmas right around the corner, it seems appropriate to take a quick look at the taxation of employee gifts. Nobody is ever going to confuse Canada Revenue Agency (CRA) with Santa Clause, but at least CRA does provide some small relief from … Continue reading

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