Most business owners have non-deductible mortgages owing on their primary residences. Meanwhile, they own their businesses outright. This means that they are throwing away after-tax dollars paying their non-deductible mortgage interest.
The IMPACT plan is the IMmediate Personal Allocation of Capital Tactical plan. It immediately reallocates your capital to optimize your tax efficiency.
Big businesses have the resources to hire professionals to do their tax planning. The IMPACT plan enables you to do the same kind of planning at a level that suits your personal and business tax needs. Ordinarily, you would have to pay a team of tax professionals tens of thousands of dollars to assemble a plan of this value. The IMPACT plan is available at no upfront cost to you. And you can deduct $20,000, $30,000, even $40,000 in your very first year.
The Supreme Court of Canada has recently re-stated that:
“It has long been a principle of tax law that taxpayers may order their affairs so as to minimize the amount of tax payable”
“There is no reason why a taxpayer may not arrange his or her affairs so as to finance personal assets out of equity and income earning assets out of debt.”
The IMPACT plan provides 3 basic steps that enable you to invest in your own company while deducting 100% of the interest off this new loan at no upfront cost to you. Investment loans are deductible under Section 20(1)(c) of the federal Income Tax Act.
This table shows you how much you can deduct in your first year:
MortgageIncome Tax Deductions in Year 1 $300,000 $21,301 $400,000 $26,735 $500,000 $32,169 $600,000 $37,603
Stop Spending After-Tax Dollars Paying Your Interest The IMPACT plan has 3 basic stages with tremendous benefits. Your tax deductions are for 100% of your mortgage interest, effective immediately.
You are investing into your own business. Your plan will be individually crafted and built specifically for you by one of the leading tax law firms in the country, Shea Nerland Calnan LLP (clickhere). Shea Nerland Calnan LLP is a premier business law firm with tax planning as a focus practice area.
The 3 Stage Plan
Stage 1You work with an IMPACT consultant to plan an investment into your own business before you purchase your next home, or refinance your mortgage. This investment into your business utilizes the full proceeds of your new loan and allows you to deduct 100% of the interest off this new investment loan.
Stage 2Your corporate entity utilizes this new capital to benefit the corporation and its shareholders. Some clients use this opportunity to finance growth, purchase equipment, or invest, through their corporations, into any market that will provide the best return for their risk tolerance.
Stage 3You eliminate any existing non-deductible debts you may hold. This can include a previous non-deductible mortgage, large credit card or personal line of credit. Alternately, funds can be used to close the purchase of a new home...
"A carefully executed plan will allow an investor to re-characterize the payments from being non-deductible mortgage interest to tax-deductible investment loan interest" -Invesco Trimark(article here)(download PDF here)
"Under its most common allowances and interpretations, mortgage-interest deductions can still work as an effective strategy for reducing taxes" - Financial Post, James Pasternak (article here)
"The general rule is that if you borrow money to earn income, either from investments or from a business, the interest paid on that loan is deductible." - Financial Post, Jamie Golombek (article here)
Testimonials
" As a small business owner, I always felt like my financial options were somewhat limited. Jared showed me how I can invest in and grow my own business. He was great to work with and his professional knowledge really put me at ease. Now I'm really looking forward to deducting $25,000 this year and ever year!"
Leah B.
" I have run a small business for a long time. Cash flow has been a challenge and paying excessive taxes has always made our business less profitable than it could be. I am looking forward to using the IMPACT tax planning strategy to adding some great deductions and profits to my business."
Andy B.
" I run a small business with 2 employees, it was a great feeling knowing I was getting the same kind of tax planning big business firms were getting, and from a law firm that handles TSX listed companies. To top it all off, I didn't have to go out of pocket, not even a cent! Thank you so much, its nice to see someone doing something for us small business owners. Randal P.
If you have a story to share, we'd love to hear it.
