Did You Know in Visual Studio .NET

Drawing QR Code JIS X 0510 in Visual Studio .NET Did You Know
Did You Know
Quick Response Code Creation In VS .NET
Using Barcode printer for VS .NET Control to generate, create QR Code image in .NET applications.
Any income earned in a trust can be taxed in the hands of the bene ciaries rather than the trust if the income is paid out or made payable to the bene ciaries Paid out does not just include direct payments to the bene ciaries alone In fact, the tax collector has said that payments to third parties (for example, summer camps or private schools) or to parents
QR Code 2d Barcode Decoder In .NET
Using Barcode scanner for .NET framework Control to read, scan read, scan image in Visual Studio .NET applications.
The Kiddie Tax
Paint Barcode In .NET Framework
Using Barcode printer for .NET Control to generate, create barcode image in Visual Studio .NET applications.
There s no question that family trusts holding shares of family corporations have, in the past, meant big tax savings for some Through a tactic known as dividend sprinkling, it was possible for a private company to pay dividends to a trust for the benefit of minor children The kids would typically pay no tax on those
Decoding Bar Code In .NET
Using Barcode decoder for .NET Control to read, scan read, scan image in Visual Studio .NET applications.
to reimburse them for costs incurred on behalf of a child bene ciary also qualify Be sure to keep all receipts to show that the payments were for the child s bene t
QR-Code Generation In Visual C#.NET
Using Barcode printer for .NET framework Control to generate, create QR-Code image in VS .NET applications.
dividends, with the result that money could be extracted from the private company on a very tax-ef cient basis The tax collector wasn t thrilled with this set-up and took steps in 1999 to minimize dividend sprinkling So the 1999 federal budget took a shot at dividends
Drawing QR Code JIS X 0510 In .NET
Using Barcode creator for ASP.NET Control to generate, create Quick Response Code image in ASP.NET applications.
1 0 1 Ta x S e c r e t s F o r C a n a d i a n s
QR Code Printer In VB.NET
Using Barcode drawer for Visual Studio .NET Control to generate, create Denso QR Bar Code image in .NET applications.
paid directly or indirectly to minors Minor bene ciaries will now pay a tax at the highest rate about 32 percent on ineligible dividends This is called the kiddie tax Here s a closer look at the rules: A special tax, at the top marginal rate, will be imposed on certain income (called split income ) received by individuals under age 18 throughout the year This special tax will apply to taxable dividends and other shareholder bene ts from private companies (both Canadian and foreign), including dividends received indirectly through a trust The tax will also apply to income from a partnership or trust that supplies property or services to, or in support of, a business carried on by a relative of the child or in which the relative participates Rental income will generally be caught under these rules (as of December 20, 2002) Income subject to this tax will not be eligible for any deductions or credits, except the dividend tax credit and the foreign tax credit where they apply The measures do not apply to payments to or for adults (those 18 or older in the year) The measures do not apply to dividends from publicly traded shares The measures apply to transactions in 2000 and future years
Bar Code Printer In VS .NET
Using Barcode drawer for .NET framework Control to generate, create barcode image in .NET applications.
Trusts Still Make Sense
GS1-128 Maker In .NET
Using Barcode drawer for VS .NET Control to generate, create GS1 128 image in VS .NET applications.
If you ve already set up a family trust or are wondering whether or not it still makes sense to create a family trust to hold shares of your private company, you ll be glad to know that tax savings can still be had Here s what I mean: Any dividends that are paid from your private company to your family trust will face tax at the highest rate going due to the kiddie tax rules The good news, however, is that the money remaining, after taxes, can then be invested in the trust with no concern whatsoever about the kiddie tax or attribution rules
Making Bar Code In .NET Framework
Using Barcode printer for .NET framework Control to generate, create bar code image in VS .NET applications.
landscaping and lawn care in BC A family trust was set up a few years ago to
Barcode Generation In Visual Studio .NET
Using Barcode maker for Visual Studio .NET Control to generate, create barcode image in VS .NET applications.
eter and Janice are married and have four minor kids: Tori, Lincoln, Virginia, and Lewis Peter is a shareholder in his own corporation specializing in
ITF14 Creation In .NET
Using Barcode generation for .NET framework Control to generate, create UPC Case Code image in .NET applications.
Home Team Advantage: Tax Planning for the Family
Generating Barcode In Visual Studio .NET
Using Barcode drawer for ASP.NET Control to generate, create barcode image in ASP.NET applications.
hold shares of the corporation, and the kids are beneficiaries In 2006, the corporation will pay $20,000 in dividends to the trust for each child Each child will face taxes of $6,316 on those dividends, but a total of $54,736 will remain in the trust, after taxes, and will be invested in publicly traded securities and mutual funds It doesn t matter what type of investment portfolio income is earned in the trust; all the income earned will be taxed in the hands of the children at their graduated tax rates, with no more application of the kiddie tax or the attribution rules Why is it that the kiddie tax and attribution rules won t apply anymore to the portfolio income in the story above The kiddie tax won t apply since this investment income is not derived from a private company, and the attribution rules won t apply because this is all second-generation income Further, it s quite likely that when the trust in the above example was set up, it was settled by a gold or silver coin provided by the grandparents of the bene ciaries, and a coin is not an incomeproducing asset This alone allows avoidance of the attribution rules In closing, let me say that there is no shortage of tax laws dealing with trusts I ve only touched on the basics here In addition, I have dealt with the issue of alter ego trusts (a type of inter vivos trust for seniors) in Tip 102 Alter ego trusts are really an estate-planning tool If you re considering a family trust, be sure to visit a tax pro You ve heard it before: Don t try this by yourself at home
EAN / UCC - 13 Drawer In .NET
Using Barcode creation for ASP.NET Control to generate, create USS-128 image in ASP.NET applications.
TO MAKE A LONG STORY SHORT:
Generating EAN / UCC - 13 In Java
Using Barcode creation for Java Control to generate, create EAN / UCC - 13 image in Java applications.
Every trust has at least one settlor, one trustee, and one beneficiary, along with trust property A trust is commonly used to split income by holding investment portfolios or private company shares When setting up a trust, be sure to visit a tax pro to ensure that the trust is settled, the trustees are named, and the trust documentation is prepared properly
Barcode Printer In Java
Using Barcode maker for Java Control to generate, create barcode image in Java applications.
Bar Code Drawer In .NET
Using Barcode printer for ASP.NET Control to generate, create bar code image in ASP.NET applications.
ANSI/AIM Code 39 Scanner In .NET
Using Barcode reader for Visual Studio .NET Control to read, scan read, scan image in Visual Studio .NET applications.