It is not uncommon for our clients and others
to wonder if there are other ways to reduce their taxes every
year. Thankfully there is:
Corporate Class funds.
Here's how they work: These types of mutual funds are structured
as a corporation, rather than a traditional mutual fund trust.
This enables investors to make investment decisions without
being affected by tax concerns. They can benefit from tax
deferral and increased compound growth over the long term.
There are three primary benefits to investing
your non-registered money in an investment vehicle such as
Corporate Class funds: (use numbers instead of letters)
4. There are three primary benefits to
investing your non-registered money in an investment vehicle
such as Corporate Class funds:
- You are able to make switches within
these specific mutual funds without triggering capital gains or
losses. A taxable event occurs only when investors redeem
from the corporation.
- You are able to defer taxable income
from your funds to stop annual taxation from T3s and T5s.
Capital gains and losses can be timed to minimize taxes.
- You are able to convert interest income
in the portfolio to tax-efficient capital gains. The taxable
event only occurs when investors redeem from funds.
If you are interested in learning more
about how Corporate Class funds can help you minimize the
taxes you are currently paying on your non-registered investment
portfolio, please contact
us at your convenience.
Visit
our dedicated “TaxSmart Mortgage” website at www.theTaxSmartmortgage.ca
for up to date seminar times
and locations
