Is Tax Planning Worth It?

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Donald Trump Is Right (About Tax).

Now, generally I disagree with almost all of The Donald’s actions. But not on tax. If you are interested in legal ways of saving big money on tax when selling property, a business, or other large investments in Alberta, get in touch with me now at RMLO Law LLP.

Donald Trump’s advisers have called him a “genius” after reports that his $900 million loss in 1995 helped him avoid paying federal tax for the next 18 years.

“This is a perfectly legal application of the tax code and he would have been fool not to take advantage of it,” said former New York mayor Rudy Giuliani, one of Trump’s advisers.

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Non-Resident Taxes

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Non-Resident Tax:
A Sleeping Bear with a Big Bite.

As a real estate lawyer, I was happy to have one of my favourite realtors send me a new deal where I would be the seller’s lawyer. The first sign of trouble was a big add-on clause that confirmed the sellers were non-residents of Canada. “Uh-oh, could be trouble,” was my first reaction. Then I thought, “if the contract is making a special note that the sellers are non-residents, maybe they have the non-resident tax thing under control…?” When I chatted with the sellers and asked the question, no such luck. They knew nothing about any Canadian tax they might have to pay as non-residents and, in fact, had done nothing about tax of any kind in the 12 years they had owned the property. Now I’m really concerned and here’s why. Continue reading

Tax Planning Equals Profit

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Taxes: A Penny Saved Is a Penny Earned.

Do you own a business or a substantial amount of real estate? Let’s start with a few simple propositions:

  1. You want to pay as little tax as possible both while you are an owner and then when you sell.
  2. Tax rules for Canada are set out in the incredibly complicated Income Tax Act.
  3. Sophisticated, conservative tax planning can reduce your tax substantially.

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