Two Roads Out of a Professional Corporation

About this Seminar

Two incorporated dentists, two corporate portfolios. One earns less and pays tax on it every year. The other earns more, is taxed at a lower rate, and chooses when much of that tax comes due. The difference is what each portfolio holds.

This session examines the Capital Dividend Account (CDA) — how money leaves a professional corporation tax-free, and why capital gains are what fill it. Most corporate portfolios are not built to optimize the CDA. Participants will see how a portfolio can be structured so its return arrives as capital gains rather than interest, and how long-term private assets such as infrastructure and private equity compound while generating little annual taxable income. It draws on how Canada's largest pension plans invest, and what is now within reach of a professional corporation.

Learning objectives
At the conclusion of this session, participants will be able to:

• identify whether their corporate portfolio is generating any Capital Dividend Account balance;


• distinguish interest, dividend and capital gains income by what each delivers to the shareholder after tax;


• describe the pension-style investment strategies now available; and
  formulate the questions to raise with their accountant and wealth manager.


• Educational session. Not tax or investment advice

Presenters

About Shamez Kassam

MBA, CFA

Shamez Kassam began his career analyzing alternative investments at Alberta Investment Management Corporation (AIMCo), one of Canada's largest institutional investors. He now brings that same discipline of pension-grade investing to incorporated professionals as Founder and Portfolio Manager of Mount Columbia Private Wealth, operating under a fiduciary standard for clients across Canada.

A CFA charterholder with an MBA from Columbia University in New York, Shamez is the author of Your Money's Worth: The Essential Guide to Financial Advice for Canadians. He works with dentists, physicians and other incorporated professionals, and with their accountants, on optimizing corporate portfolios for tax efficiency and long-term capital growth. He speaks regularly on corporate investment structure and retirement income for professional audiences.

mountcolumbiawealth.com