Frequently Asked Questions

These are questions that are asked on numerous occasions. There is no single answer to the questions below, as each situation differs. At Bongard Dale Fried, we seek to understand your situation and our team will give you the proper advice, as it pertains to your needs.

Should I Buy Or Lease My Car?

Buying or leasing a car is an individual decision and there is no simple answer. Factors to be considered include: cash flow, opportunity costs with the money being used, interest rates, and tax write offs.

Should I contribute to a Registered Retirement Savings Plan or pay down my mortgage?

This is a very common question, with many variables to consider. The answer depends on rates of return within the RRSP, the interest rate on the mortgage, the amount of the mortgage, and the comfort level of carrying debt.

Should I buy a car through my corporation?

Most of the time (there are exceptions to the rule), it is prohibitive to buy a car through a corporation.

Should I set up a trust to minimize tax and for estate planning purposes?

Trusts are a very useful tool, but they are very complex to set up and maintain.

Should my active business corporation maintain large cash balances?

Maintaining large cash balances within a corporation is usually not a good idea for various reasons.

Is it better to take a salary or dividend out of my corporation?

There are many factors to consider with regards to remuneration, including: profitability of the corporation, tax rate on the dividend taken out, Canada Pension Plan and Registered Retirement Savings Plan limits.

Should I incorporate or maintain a sole proprietorship?

From a tax perspective, it depends on whether you need your entire profits to maintain your day to day lifestyle. From a liability perspective, it is better to incorporate.

At what age should one collect Canada Pension?

This is a complex question and the answer depends on financial need, health, taxes and life expectancy.

Bongard Dale Fried, LLP, Chartered Accountants