In BC, to contribute the max amount to a TFSA of $6,000, your company needs to make more than double! 💰 $13,190 to be exact. 💡

Hi, I’m Laurent Munier! 👋 Welcome (or welcome back) to our channel! Today, we’re diving deep into the world of TFSAs and whether they are a smart choice for Canadian Business Owners. 🏦💼

Thanks to CIBC for the detailed breakdown on this topic! 📊 We’ll explore how TFSAs can be beneficial for you and compare it to investing through your corporation. 🤔

🔍 *What is a TFSA?*

- Introduced in 2009 📆
- Tax-free savings for Canadian adults with a valid SIN 🇨🇦
- Contributions are not income tax-deductible ❌
- Earnings and withdrawals are tax-free 💵
- Contribution room accumulates yearly 📈

🤑 *Contributing Using Corporate Income:*
To make a TFSA contribution using your company’s income, you must first withdraw the funds. The math: $6,000 TFSA contribution = $13,190 in corporate earnings! 🤯

💼 *Investment Options:*

1. *Investing in a TFSA:* Tax-free growth! 🌱
2. *Investing in Your Corporation:* Higher initial capital but taxable income 💹

📈 *Growth Over Time:*

- TFSAs offer consistent, tax-free growth! 🌟
- Corporate investments offer higher initial capital but are subject to taxes, affecting long-term returns 📉

💬 *Final Thoughts:*
Choosing between a TFSA and corporate investments depends on various factors, including tax rates and the type of income. While TFSAs often provide better after-tax returns, deferred capital gains in corporations can sometimes outperform TFSAs. 📊

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Need personalized advice? We work with Canadian business owners every day to help them grow and protect their wealth. Visit SafePacific.com to set up a meeting, and we’ll get back to you within 24 hours on business days. 💼🔗

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