/EINPresswire.com/ -- VANCOUVER, BC--(Marketwired - January 17, 2018) - For the Vancouver tax advisors at Mew + Company (and elsewhere), 2017 has been a year of drama. While Canadians waits for the 2018 budget, which will provide clarity on Canada's financial and tax future, a new blog on the company website provides suggestions for year-end tax planning. For more, go to: http://www.mewco.ca/blog/tax-planning-dilemmas-2017-come-close/

Given current expensive living conditions in Vancouver, with parents having to assist adult children buying a principal residence, maximizing 2017 dividends to adult children and a spouse is not bad tax planning.

Excess funds held personally can always be put into the TFSA or RRSP. Investment income and capital gains can accrue tax-free by each adult member in these registered accounts. TFSA is a very flexible and tax-free way to access cash when needed. Future draws of dividends from retained earnings will likely be limited except to the active shareholder(s), which means higher marginal tax rates could apply as the dividends increase to one person.

The same argument applies to the extraction of the Capital Dividend Account by the end of 2017. With the strong performance of the stock market and real estate, many portfolios are sitting with healthy capital gains and a CDA balance (which can be increased by crystallizing gains).

However, given the current state of flux, and uncertainty regarding tax proposals, maximizing 2017 retained earnings would also be good tax planning. This would mean foregoing the CDA extraction until 2018 or after further clarity arrives from Ottawa. The problem with this plan is capital gains could quickly turn into capital losses, and this could reduce the CDA balance.

At this point, there's no certainty how the new tax rules will be rolled out -- or how they will be reconciled with existing ones. As tax advisors and taxpayers wait for the 2018 budget to provide some clarity, the best thing to do is work with a team that can provide the right assistance and advice once the new rules are finalized.

Mew + Company works with Canadian individuals and private corporations to maximize after tax income and reduce tax burdens. To learn more, please call 604 688 9198.

About the Company

At Mew + Company, we've got the solution to your taxation problems. With a simple philosophy of building long-lasting customer relationships, the company has been serving corporate clients in a variety of fields -- including restaurants, real estate, retail, and the service industry. Investing in their specialist services will undoubtedly be fruitful for all kinds of clients.

To learn more about Mew + Company and discuss their services, log on to: http://mewco.ca/