Services
Tax Planning
Accounting and Advisory
Estate Planning and Preservation
Industry
Service Business
Background
A customer-focused husband and wife team run an auto mechanic shop located in the lower mainland. The husband manages the shop team, while the wife manages operations and administration. They were looking for a young, creative accounting firm who could grow with them. Their goals were to find tax savings, experience growth and save for retirement.
Our Approach
The Encompass team started the process by meeting with the business owners to discuss their goals and needs, so we could understand the nuances of their business and lifestyle. We reviewed their financial statements and tax returns, as well as their existing corporate structure and came up with the following opportunities:
- Found a unique planning opportunity to unlock tax-free funds from the corporation
- Added the wife as a shareholder to allow for income splitting
- Added a holding company so that after-tax corporate earnings can be invested efficiently
Benefits
- We reduced the family’s overall taxes.
- They can now save for retirement in a tax-efficient manner.
- When the business is eventually sold, both husband and wife should each be able to utilize their Lifetime Capital Gains Exemption.
