[{"data":1,"prerenderedAt":201},["ShallowReactive",2],{"/blog/ppp-optimization-tips":3,"/blog/ppp-optimization-tips-surround":191},{"id":4,"title":5,"body":6,"description":174,"extension":175,"meta":176,"navigation":186,"path":187,"seo":188,"stem":189,"__hash__":190},"blog/blog/ppp-optimization-tips.md","PPP® Optimization Tips",{"type":7,"value":8,"toc":169},"minimark",[9,17,23,29,34,40,45,51,56,62,67,73,82,88,93,99,104,109,119,123,126,131,139,143,146,151,154,158,161],[10,11,12,16],"p",{},[13,14,15],"strong",{},"Tip #1","\nRoll existing RRSPs into the AVC component of your PPP®. Turns non-deductible investment management fees into corporate tax deductions. ",[10,18,19,22],{},[13,20,21],{},"Potential Savings","\n1% Fee on AUM of $1,000,000 if Corporation pays tax at 26% = $2,600 refund of tax ",[10,24,25,28],{},[13,26,27],{},"Tip #2","\nApply for input tax credits for HST paid on your PPP® fees (commissions, IMFs etc.) ",[10,30,31,33],{},[13,32,21],{},"\n100% of HST can be refunded  E.g. $500 refunded",[10,35,36,39],{},[13,37,38],{},"Tip #3","\nAd hoc valuation filed using market dip (e.g. March 31st 2020)  – crystalizes deficits that can be replenished by the corporation with tax-deductible special payments.  Also allows to go “bargain hunting” in a depressed stock market ",[10,41,42,44],{},[13,43,21],{},"\nAssume PPP® with $1,000,000 before March 23rd that now has $600,000.  Corporate tax deduction on $400,000 special payment = $104,000 savings in corporate tax (using 26% corp.tax rate) ",[10,46,47,50],{},[13,48,49],{},"Tip #4","\nTrigger Terminal Funding prior to age 65 to enable the client to retire on a partially unreduced and indexed pension. ",[10,52,53,55],{},[13,54,21],{},"\nIf Terminal Funding corporate tax deduction is $500,000 (and tax rate is 26%) savings are $130,000 ",[10,57,58,61],{},[13,59,60],{},"Tip #5","\nConsolidate all of one’s RRSPs under the PPP® to give creditor protection to these amounts ",[10,63,64,66],{},[13,65,21],{},"\nDifficult to quantify the value of not losing one’s life savings to creditors ",[10,68,69,72],{},[13,70,71],{},"Tip #6","\nPension-income splitting with a spouse as early as age 50.  This can occur in parallel with Tip No. 4 (Terminal Funding) ",[10,74,75,77,78],{},[13,76,21],{},"\nIf the annual pension is $100,000, the mere fact of splitting income with a spouse saves the couple $8,124 annually.  If a couple starts at 50, that’s $121,860 more savings than with a RRIF. ",[79,80,81],"span",{},"Ontario rates",[10,83,84,87],{},[13,85,86],{},"Tip #7","\nAllocation a portion of the pension fund to non-RRSP eligible asset classes that are not linked to the stock market. ",[10,89,90,92],{},[13,91,21],{},"\nProvides stability to the portfolio. (Difficult to quantify) ",[10,94,95,98],{},[13,96,97],{},"Tip #8","\nAdd adult children on the payroll of the family enterprise to the PPP® and recognize past service for them. ",[10,100,101,103],{},[13,102,21],{},"\nOn the death of a retired PPP® member, there will be no ‘deemed disposition (e.g. $4,000,000 pension fund would save the survivors $2,000,000 in taxes on death) \nThe PPP® Inter-Generational Wealth Transfer Strategy is one of the most tax-efficient ways to pass on family wealth.",[10,105,106],{},[13,107,108],{},"Tip #9",[10,110,111,112],{},"If you are a BC Doctor, and you set up a PPP®, make sure to apply for your BC medical association subsidy (the CPRSP). ",[113,114,118],"a",{"href":115,"rel":116},"https://www.doctorsofbc.ca/sites/default/files/cprsp_ltr_appl_form-match.pdf",[117],"nofollow","Click here for the form.",[10,120,121],{},[13,122,21],{},[10,124,125],{},"This program could result in an annual subsidy of over $7,000 that can be contributed to your PPP®depending on your length of service as a billing physician and other factors.",[10,127,128],{},[13,129,130],{},"Tip #10",[10,132,133,134],{},"Don’t forget to claim your non-refundable pension amount credit ($2,000 annually) for each person in the couple if you are doing pension income splitting (See Tip #6).  ",[113,135,138],{"href":136,"rel":137},"https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-31400-pension-income-amount.html",[117],"Click here for the CRA to provide guidance",[10,140,141],{},[13,142,21],{},[10,144,145],{},"If a couple does pension income splitting (See Tip #6) and now also claims $4,000 annually as early as age 50, having remembered to claim this credit will translate into $9,000 in savings by the time they reach age 65.",[10,147,148],{},[13,149,150],{},"Tip #11",[10,152,153],{},"Speak to INTEGRIS specialists about PPP® structure optimization and how to best navigate through the sale of a company, keeping the PPP structure in place.",[10,155,156],{},[13,157,21],{},[10,159,160],{},"Business assets are extracted over time from the operating company to the PPP® (moving assets from a taxable to a tax-sheltered environment).  The business owner may complete plan amendments to transfer sponsorship from an operating company to a holding company to prepare for the sale of the company in the future.  The PPP® contributions help with purification and qualifying for the lifetime capital gains exemption on company sale.",[10,162,163,164,168],{},"Connect with our Sales team at ",[113,165,167],{"href":166},"mailto:sales@integris-mgt.com","sales@integris-mgt.com"," to see if we can help your clients realize additional savings.",{"title":170,"searchDepth":171,"depth":172,"links":173},"",1,2,[],"Tip #1\nRoll existing RRSPs into the AVC component of your PPP®. Turns non-deductible investment management fees into corporate tax deductions. ","md",{"uid":177,"type":178,"date":179,"author":180,"cover_image":181,"cover_image_credit":182,"hide_call_to_action_button":183,"cover_image_css_classes":180,"meta_title":5,"meta_description":5,"original_posted_date":180,"tags":184,"category":185},"ppp-optimization-tips","post","2021-05-31",null,"/uploads/ppp-optimization-tips-cover-image.jpg","Photo by krakenimages on Unsplash",false,[185],"Blog",true,"/blog/ppp-optimization-tips",{"title":5,"description":174},"blog/ppp-optimization-tips","Ow4raKuft-7iDFptvVz2nrd3Y82SH91KT4oNtv31G_c",[192,196],{"title":193,"path":194,"stem":195,"description":170,"children":-1},"PPP® featured in Canadian Family Offices","/blog/ppp-featured-in-canadian-family-offices","blog/ppp-featured-in-canadian-family-offices",{"title":197,"path":198,"stem":199,"description":200,"children":-1},"PPP® vs RRSP vs IPP + Case study for Doctors","/blog/ppp-vs-rrsp-vs-ipp-case-study-for-doctors","blog/ppp-vs-rrsp-vs-ipp--case-study-for-doctors","Jean-Pierre Laporte, CEO from INTEGRIS, along with David MacNicol, President & Portfolio Manager from MacNicol & Associates Asset Management Inc reviews the PPP® vs RRSP vs IPP along with a case study for Doctors.",1784918203368]