Tax Minimization

At SG Wealth, we go beyond generic tax advice. We take the time to understand your unique financial situation, business goals, and family dynamics.

Whether you’re a business owner looking to optimize corporate taxes or an individual planning for retirement, our tailored strategies are designed to enhance your net worth and secure your financial future.

Introduction to
Tax Minimization

Tax minimization is the legal process of reducing your tax liability by taking advantage of deductions, credits, and other tax-saving opportunities. It’s crucial for individuals and businesses to understand these strategies to optimize their financial planning and keep more of their hard-earned money.

In Canada, there are several registered accounts that can help you save for retirement, education, or your first home, such as the Registered Retirement Savings Plan (RRSP), Tax-Free Savings Account (TFSA), and the new First Home Savings Account (FHSA). Each of these accounts has its own contribution limits and tax benefits, which are updated annually.

For 2025, the TFSA contribution limit is $7,000, and the RRSP contribution limit is $32,490 or 18% of your earned income from the previous year, whichever is less. The FHSA allows contributions up to $8,000 per year, with a lifetime limit of $40,000, and contributions are tax-deductible, while withdrawals for buying a first home are tax-free.

Why Tax Planning Matters

Effective tax planning is essential for preserving and growing your wealth. By strategically reducing your tax liability, you can keep more of your hard-earned money to invest in your future, your business, or your family’s legacy.

At SG Wealth, we specialize in helping high-earning professionals and business owners navigate Canada’s complex tax system. Our goal is to ensure you pay only what you owe—nothing more—while maximizing your financial potential.

Our Tax Planning Strategies

Income Splitting

We help you transfer income to lower-tax-bracket family members, reducing your overall tax liability. This can include setting up spousal RRSPs, pension income splitting for retirees, or employing family members in your business, all while ensuring compliance with Tax on Split Income (TOSI) rules.

Maximizing Registered Accounts

We guide you in fully utilizing Registered Retirement Savings Plans (RRSPs), Tax-Free Savings Accounts (TFSAs), and the First Home Savings Account (FHSA). For 2025, the TFSA contribution limit is $7,000, the RRSP limit is $32,490 (or 18% of earned income, whichever is less), and the FHSA allows up to $8,000 annually with a lifetime limit of $40,000, offering tax-deductible contributions and tax-free withdrawals for home purchases.

Capital Cost Allowance (CCA) Optimization

For business owners, we advise on timing the purchase and sale of capital assets to maximize CCA deductions. Buying assets just before your business year-end allows you to claim 50% CCA in that year, while selling after year-end can defer taxes on capital gains.

Estate Planning

We structure your estate to minimize taxes upon inheritance, using tools like trusts and private pension plans to ensure efficient wealth transfer to the next generation.

Corporate Tax Planning

For incorporated professionals, we optimize the mix of salary and dividends to minimize your tax burden. We also provide guidance on shareholder loans to avoid taxable benefits under subsection 15(2) of the Income Tax Act.

Charitable Giving

We help you leverage charitable donations for tax credits, supporting causes you care about while reducing your taxable income. For larger donations, we can assist in setting up donor-advised funds or private foundations.