We've made substantial changes that apply to CCPCs to improve accuracy, clarity, and optimisation. If you have an incorporated small business, read on.
- The first changes you will see are in the CCPC PROFILE. There you will enter the CCPC Owner (you or your spouse). For each of you, and any DEPENDENTS entered, we require their percentage ownership of the company, and if they are allowed to receive dividends before the CCPC owner turns 65 (usually not the case for non-voting shareholders of professional corporations).
- You can also set a date when you want to wind down your CCPC. On that date, CCPC accounts will be liquidated and its loans paid off. Any remaining cash value of any life insurance contracts owned by the CCPC will be received. After the corporate taxes are paid, the CCPC will distribute the remaining cash as dividends in a tax-efficient manner to the shareholders in accordance with their percentage ownership.
- In INCOMEs, you will see 2 additional income types you can add for incomes coming from the CCPC (Optimised Dividends, and Salary and Optimised Dividends). For these, the amount of income from dividends issued by the corporation will be divided into capital dividends, eligible dividends, and non-eligible dividends in a tax-optimized manner to maximize the depletion of notional accounts. If income is still needed after that, for the first option, non-eligible dividends are paid, whereas in the second option, a salary to the CCPC owner will be paid.
- These 2 new income entries can also be Joint with a spouse, and in that case, the dividends paid will be shared equally between the spouses, if the spouse can receive dividends.
- We describe in the eBook how to set up a SCAN to find the level of salary versus dividends to apply that maximizes the estate (including the value of the CCPC) at the death of owner,
- For better accuracy of the current year's calculations, there are additional inputs in the CCPC tax input form to capture the year-to-date gains in your CCPC investment accounts.
- We have clarified the CCPC table headers, and there are now detailed year reports for the CCPC that also include a Sankey cash-flow diagram for each year (just click on the year in the CCPC Time Table). There is also a detailed cash-flow report for all years.
As always, lots of explanations in the eBook and Help pages. If this sounds complicated, well it is. CCPCs are very complicated and you should always consult with professional advisors (accountants and lawyers) that are specialised in this area.