How Is Investment Income Taxed? Watch Video
Allan Madan, CPA, CA
Keep reading to learn about how investment income is taxed to you personally, Read More…
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The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided on this page.
ABOUT THE AUTHOR
ALLAN MADAN
CPA, CA
Allan Madan is a CPA, CA and the founder of Madan Chartered Accountant Professional Corporation. Allan provides valuable tax planning, accounting and income tax preparation services in the Greater Toronto Area.
Good day,
Can I move ineligible dividends from my corporation into an RRSP without having to pay tax on the dividend?
Thanks
Hi J-T,
Yes, this is possible, if the RRSP deduction is large enough to wipe out the tax payable on the dividends received.
Okay, thanks for the response. For ex, lets say I took out 90k in dividends but moved 30k of that into RRSPs. I will only have to pay tax on 60k dividend?
Hi J-T,
Assuming that the taxable dividend is $90,000 and you claim an RRSP deduction for $30,000, then you will pay income tax on $60,000 – less dividend tax credit.