Why do you need to get passive income and how to do it right.

The modern role of passive income in everyone’s life. There is currently a tax deferred tax credit for business owners who receive post-tax income from their corporation. This is due to the fact that the operating income of a corporation, as a rule, is taxed at lower rates than if it were received by an individual. If an individual were within the maximum marginal tax category and received income from entrepreneurial activity, this income would be taxed at the federal tax rate of 33%. On the other hand, corporations are subject to a federal total corporate tax rate of 15%. In addition, if the corporation were a private corporation controlled throughout the fiscal year, it could benefit from a federal tax rate reduction of $ 500,000 (known as the “business limit”).

The concept of an association is defined in the Income Tax Act (Act) and will be explained in detail below. In addition, the business limit is reduced by the linear method for related corporations, where the total amount of taxable capital used is from 10 to 15 million US dollars.

The concept of passive income investments is beyond the scope of this article. As a result of a lower corporate tax rate, owners of a combined business may have more after-tax funds to invest in their companies.

Given this higher amount of seed money available for investment purposes, a business owner may receive tax returns after taxes that exceed those that a single investor could receive, while maintaining a personal investment account. In addition, the longer these funds remain in the corporation, the higher the value of this “benefit from tax prolongation”. The government is concerned about this benefit from tax deferral. The government proposes to reduce the business limit on a linear basis in such situations when the corporations associated with it receive investment income from $ 50,000 to $ 150,000 per year.

The proposed passive income strategies will reduce the business limit by $ 5 for every dollar of passive investment income that exceeds the threshold of $ 50,000. The business limit will be canceled if CCPC and its associated corporations receive passive investment income of $ 150,000 or more per year. The proposed reduction in the business cap will apply to tax years beginning after 2018. This reduction will be applied in conjunction with existing tax rules from 10 to 15 million US dollars. Consequently, a decrease in the corporation’s business limit will be equal to a larger decrease based on the taxable capital used and a decrease based on income from passive investments.

My father worked all his life for the boss, waiting for his retirement in order to enjoy life. Unfortunately, he died of cancer just before he stopped working. I could not do anything to help him become free. But I can help you achieve this. My most ardent desire is to help you become a Money Boss, to possess money and their ability to fulfill your dreams. That is why I wrote this book. Therefore, I express my sincere gratitude and congratulations to you for taking this book into your own hands. You will see that another life is possible, and you can specifically move towards it.

My deep conviction is that life becomes much more beautiful when you use everything that it has to offer: live, study, grow, spend wonderful moments with those we love, have a good time, become the highest version of yourself, enjoy life , realize our deepest desires … But how to do this if you spend most of your life in captivity of toxic work that you don’t like, or unworthy benefits?

How do you thrive if you are worried about the end of the month or retirement? How to create passive income with no money to become “rich”, financially free. This is not an end in itself, but a way to live the life that you dream of, deep inside yourself. This is one of the noblest goals you can pursue. For this, I congratulate you. No matter what others think, you are right to take responsibility for your finances and move towards your wealth and freedom.