Comments on: Weekend Reading – Feb 22, 2008

By: Jeff

Jeff — Fri, 22 Feb 2008 20:54:46 +0000

I completely agree with 45free.com. Consult an accountant before trying this at home. The $400k small business dedection only applies to active business income. Dividends received from investments would be classified as aggregate investment income, which is taxed at the full corporate rate (~34% in BC where John Chow lives).

By: Dividendgrowth

Dividendgrowth — Fri, 22 Feb 2008 19:22:31 +0000

I also think that next to his tax article John Chow should put a lable like “do not attempt this at home” ;-)

By: 45free.com

45free.com — Fri, 22 Feb 2008 18:31:05 +0000

I would suggest that anyone interested in implementing any of John Chow’s tax planning strategies seriously talk to a tax pro before doing so. For instance, except in certain circumstances, a loan to a shareholder of a CCPC needs to be paid back by the end of the fiscal year following the year the loan was made. Delaying payment as some serious and punitive tax consequences. Some of the other strategies need to be done properly in order to be tax efficient.

By: ThickenMyWallet

ThickenMyWallet — Fri, 22 Feb 2008 17:50:49 +0000

Thanks for the mention.

By: Canadian Capitalist

Canadian Capitalist — Fri, 22 Feb 2008 15:13:52 +0000

Thanks for the link FT. When I do get better, I’ll get around to doing a blog roundup myself. It seems like I’ve been sick more often than not in 2008. Take care!

By: Pinyo @ Moolanomy

Pinyo @ Moolanomy — Fri, 22 Feb 2008 14:25:49 +0000

Hey, thank you for sharing my article and call it creative.

As for ETF, I think it depends if the account is taxable or not. I swear I’ll never buy another mutual fund in my taxable account. Just one hit with capital gains distribution/dividend distribution will make ETFs worthwhile (even with the trade commissions — assuming you only buy once or twice a year).

By: squawkfox

squawkfox — Fri, 22 Feb 2008 14:18:36 +0000

I’ll be reading the “when to switch to ETFs” articles for sure. I am currently in index funds and have some investments over at PH&N. Given the news yesterday (RBC Buys PH&N) I’m feeling the need to really watch fees.

By: The Financial Blogger

The Financial Blogger — Fri, 22 Feb 2008 12:01:12 +0000

Thx for the link to the Carnival :-D

By: Four Pillars

Four Pillars — Fri, 22 Feb 2008 11:56:49 +0000

Thanks for the link!

I actually didn’t like that post very much so I ended up writing another one (hopefully the last one on that topic).

Mike