Why Plan Ahead Instead of Waiting for Tax Season?
Tax planning should be done at the beginning of the fiscal year, not when you file your annual return. By the time your return is being prepared, most opportunities to lower tax for that year have already passed.
Planning early lets you time income and expenses, choose how to pay yourself from your corporation, make the most of registered accounts and avoid surprises at year end. The result is lower tax, steadier cash flow and fewer last-minute decisions.
The best time to cut next year’s tax bill is now. Talk to a CPA before your year end.
Our Tax Planning Services
Corporate Tax Planning
We help incorporated businesses lower tax and plan cash flow. This includes salary vs. dividends advice for shareholders, advice on shareholder loans and advances, timing of large purchases and year-end planning. We then carry these plans into your corporate tax return.
Personal Tax Planning
We help individuals and families make full use of personal tax deductions and credits, RRSP, TFSA and FHSA contributions, and income splitting where allowed. Your plan is reflected in your personal tax return each year.
Real Estate Tax Planning
Whether you own rental property or buy and sell real estate, how you hold and report it affects your tax. We review whether to own property personally or through a corporation and how sales will be taxed. Learn more on our real estate tax return page.
Non-Resident Tax Planning
If you are leaving Canada, living abroad or earning Canadian income as a non-resident, we plan for departure tax, withholding tax and treaty relief. See our non-resident tax return services.
Investment Portfolio Review
We review your capital gains and losses to see where tax can be reduced, such as using losses to offset gains.
Preparation of Tax Opinions
We prepare written tax opinions on specific transactions or questions, so you understand the tax effect before you act.
Salary or dividends? Corporation or personal? Get a clear answer from a CPA.
Examples of Tax Planning Strategies
Every plan is built around your situation, but common strategies include:
- Using personal tax deductions and credits that are often missed, such as medical, childcare, tuition and donation credits.
- Reviewing investments for capital gains and losses to manage tax on sales.
- Salary vs. dividends advice for corporate shareholders, balancing tax today with RRSP room and CPP.
- Shareholder loan and advance planning to avoid unexpected tax on money taken from a corporation.
- Registered account strategy using RRSPs, TFSAs and FHSAs.
- Choosing the right business structure, such as staying a sole proprietor or incorporating. Our incorporation and business registration services can help when the time is right.
Who We Help
- Business owners and incorporated professionals who want to pay themselves efficiently.
- Self-employed individuals deciding when to incorporate. See our business tax return page.
- Families looking to reduce household tax.
- Real estate investors with one or more properties.
- Non-residents and people leaving Canada.
- Executors and trustees managing estates and trusts. Visit our trust and estate tax return services.
Our Tax Planning Process
- Consultation. We learn about your income, business, investments and goals.
- Fixed quote. You know the cost before any work begins.
- Review. We review past returns, financial statements and current plans.
- Recommendations. We present clear options and the tax savings for each.
- Action. We help you put the plan in place before your year end.
- Year-round follow-up. We revisit the plan as your situation or the tax rules change.
Take advantage of these strategies today. Book your tax planning consultation.
Common Tax Planning Mistakes We See
Many people only think about tax when they file, which means they miss savings every year. Common mistakes include taking money out of a corporation without a plan, which can create unexpected tax on shareholder loans; contributing to registered accounts without considering which one fits best; selling investments without reviewing available capital losses; and buying or selling property without first checking how the sale will be taxed.
Business owners also often pay themselves the same way year after year, even when their income or goals have changed. A short planning review each year can catch these issues early. We look at your whole picture, both personal and business, so each decision supports the others and you keep more of what you earn.
Serving Clients Across the GTA and Ontario
Our office is at 2 County Court Blvd, Suite 400, in Brampton. We provide tax planning to individuals and businesses in Brampton, Mississauga, Caledon, Bolton, Georgetown, Milton, Toronto, Etobicoke, Vaughan, Oakville and across Ontario.
At Bajwa CPA, we take the time to learn about and understand each client’s business or situation to make sure we truly meet their needs and provide outstanding professional service. Our goal is to deliver our services in an easy-to-understand manner that is both timely and reliable.
Frequently Asked Questions
Is tax planning legal?
Yes. Tax planning uses the rules in the tax law, such as deductions, credits and the choice of business structure, to legally reduce the tax you pay.
When should I start tax planning?
Ideally at the start of your fiscal year. Many strategies must be in place before year end to have an effect.
Should I pay myself a salary or dividends from my corporation?
It depends on your income needs, RRSP and CPP goals, and your corporation’s profits. We compare both options with your actual numbers.
Can tax planning help if I only have employment income?
Yes. Employees can still benefit from RRSP, TFSA and FHSA strategy, credits and deductions, and planning for investments or rental income.
How much does tax planning cost?
It depends on how complex your situation is. You get a fixed quote after a consultation, before any work begins.
Start Planning Today
Looking for tax planning services in Brampton or Mississauga? Call 416-907-0568 or contact us today to book an appointment and discuss your accounting and tax needs.
