I want to invest $1M. Assume return 5%. Shall I open a company to invest or just invest under my own name?

Question

2266 viewsFebruary 20, 2019Business Tax

0

Emily (anonymous) Posted February 18, 2019

I would like to invest $1M. Assume return 5%. shall I open a new company to invest with the company just holding the investment? Will I need to pay the highest tax rate? Or I just invest under my own name assume I am in the highest tax bracket?

1 Answer

score 0 · Answer 1 · 2019-02-20T15:40:20+00:00

You will not save tax by earning investment income through a Canadian corporation. Canadian corporations are taxed at the highest rate (approximately 50%) on passive income. You are better of making the investment personally and paying personal tax on the income at your marginal tax rate.

I want to invest $1M. Assume return 5%. Shall I open a company to invest or just invest under my own name?

1 Answer

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