Hello All.... I'm a newbie... did a search but couldn't find anything directly related to this so please bear with me if its been addressed.
I'm an incorporated IT Contractor with a highly variable income (one year close to zero, next in 6 figures, next in between those extremes).
Historically, I have kept money from my 6 figure years in my corportation, taken much less in salary, then dipped into the corporation when my income is much lower. This makes a whole lot of sense from both a budgeting and tax point of view. In the long run, there are no retained earnings in the Corporation.
This year will be a significant one in terms of income. This year also has the potential to be the year which the spousal support payments will be calculated on. I am (as usual in a good year) drawing a significantly lower T4 salary than overall income.
Couple of Questions:
1) I've heard mixed reports about what will be used for support... i.e. My T4 income or my overall corporate income for the year ??
2) If it's my overall corporate income, how is the difference imputed given my books aren't done, there are corporate taxes, expenses, etc ?
3) Also if its my overall corporate income, would it make sense to T4 out my entire earnings.... even if that means much higher taxes ?
Appreciate any kind of advice or pointers to relevant threads
I'm an incorporated IT Contractor with a highly variable income (one year close to zero, next in 6 figures, next in between those extremes).
Historically, I have kept money from my 6 figure years in my corportation, taken much less in salary, then dipped into the corporation when my income is much lower. This makes a whole lot of sense from both a budgeting and tax point of view. In the long run, there are no retained earnings in the Corporation.
This year will be a significant one in terms of income. This year also has the potential to be the year which the spousal support payments will be calculated on. I am (as usual in a good year) drawing a significantly lower T4 salary than overall income.
Couple of Questions:
1) I've heard mixed reports about what will be used for support... i.e. My T4 income or my overall corporate income for the year ??
2) If it's my overall corporate income, how is the difference imputed given my books aren't done, there are corporate taxes, expenses, etc ?
3) Also if its my overall corporate income, would it make sense to T4 out my entire earnings.... even if that means much higher taxes ?
Appreciate any kind of advice or pointers to relevant threads
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