Episode 79: Unlocking Income Tax Secrets: Transforming Equipment Purchases Into Tax Deductions and Tax-Free Income

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Ever wondered if there’s a smarter way to arrange ownership of the equipment necessary for your incorporated business to operate while creating additional tax advantages for your corporation and yourself, personally?

Well, there is!

In this episode, Frank McGillicuddy will be sharing some Canadian Wealth Secret Sauce as we unpack a creative and compliant entity structure that will allow your incorporated business to create more tax deductions for itself while the shareholders create tax-free or tax-advantaged personal income for themselves simultaneously. With Frank’s guidance, we will explore how the use of a partnership with the owner of the company acting as the Limited Partner (LP) and an arm’s length individual acting as the General Partner (GP) can allow for a massive net benefit for both the corporation and the shareholder. 

Imagine enjoying tax deductions for lease payments within your company while receiving tax-advantaged personal income through a specifically designed partnership structure. It’s not just about minimizing taxes; it’s about maximizing your wealth and ensuring financial security for the future. 

How does it work exactly? Join us in this episode as we unpack some important nuances necessary to ensure your investment is safeguarded and results in a fruitful outcome for all involved.

What you’ll learn:

• Insight into an income tax minimization strategy that creates a situation for corporations to commit less capital to equipment purchases and more tax deductions, while creating tax-free or tax-advantaged income for business owners.
• Understanding of the partnership structure and its implications for tax optimization outside of the operating company that will be utilizing the equipment.
• Knowledge of the critical factors to consider when selecting a trustworthy general partner to ensure the success of this financial strategy.

Ready to take control of your financial future and unlock tax advantages you never thought possible? Don’t miss out on this episode with some creative and compliant “Wealth Secret Sauce” to add to your list of Canadian corporate wealth management strategies.

Resources:

• Reach out to Frank McGillicuddy on LinkedIn
• Book a Discovery Call with Kyle to review your corporate (or personal) wealth strategy to help you overcome your current struggle and take the next step in your Canadian Wealth Building Journey!
• Follow/Connect with us on social media for daily posts and conversations about business, finance, and investment on LinkedIn, Instagram, Facebook [Kyle’s Profile, Our Business Page], TikTok and TwitterX.  
• Looking for a new mortgage, renewal, refinance, or HELOC? Reach out to Jon to share some options.
• Dig into our Ultimate Investment Book List

Calling All Canadian Incorporated Business Owners & Investors:

Consider reaching out to Kyle if you’ve been…

• …taking a salary with a goal of stuffing RRSPs;
• …investing inside your corporation without a passive income tax minimization strategy;
• …letting a large sum of liquid assets sit in low interest earning savings accounts;
• …investing corporate dollars into GICs, dividend stocks/funds, or other investments attracting corporate passive income taxes at greater than 50%; or,
• …wondering whether your current corporate wealth management strategy is optimal for your specific situation.

By hopping on a discovery call with Kyle, he will review your specific personal and corporate financial situation in order to determine if there are some quick wins available for you to minimize taxes personally or corporately, provide ideas for how you can increase your personal cash flow, and ensure that the net worth of your estate continues to grow in tandem.

Watch Now!

Detailed Episode Summary 

Innovative Approaches and Government Bonds

Kyle and Frank explored the need for innovative approaches, particularly in the context of government bonds. They discussed the importance of understanding specific scenarios and utilizing rules to create positive outcomes. Frank was tasked with explaining his ideas and structures that could lead to a worthwhile benefit. Kyle expressed his excitement about Frank’s ideas and the potential for an audio program to help people understand and apply these concepts. They also discussed the potential audience for this program and the importance of identifying opportunities for personal growth. Lastly, Frank suggested that some competitors might be utilizing a new method that could potentially give them a cost advantage, emphasizing the importance of staying informed about new developments in their field.

New Partnership Structure for Corporate Funding

Frank proposed a new method for Canadian private corporations to extract funds, suggesting the setup of a partnership to lease equipment to the company. He emphasized the importance of keeping the partnership at arm’s length to both the investor and the company to claim tax benefits and lease income. Kyle agreed, recognizing the potential for various scenarios. They also discussed the possibility of a company forming a partnership to acquire equipment, highlighting that a partnership would likely have lower lease costs than third-party leasing. The company’s shareholders would be limited partners with no direct involvement in the partnership’s operations, maintaining the benefits of an arm’s length transaction.

Partnership Transactions and Financial Adjustments

Frank and Kyle explored various solutions for partnership transactions. They considered non-arm’s-length general partners, bartering transactions, and limited partnerships for acquiring machinery. They noted that such arrangements could ease financial burdens, using a landscaping company as an example. They also discussed the potential complications that could arise from third-party investments due to differing risk perceptions. They concluded that these models could be attractive to related parties but should be carefully considered by unrelated parties.

Private Investing, Partnerships, and Scalability Discussion

Frank and Kyle discussed the complexities and potential risks of private investing, emphasizing the importance of understanding the process, identifying potential hurdles, and mitigating risks through appropriate agreements and due diligence. They also explored a potential business partnership where Frank would lease or loan equipment to Kyle’s company, with the equipment serving as collateral. The discussion highlighted the need for clear terms, considering potential benefits and risks for both parties, and the potential for scalability in various industries. They also hinted at an upcoming detailed analysis of this concept in a podcast episode.

Equipment Leasing Partnership Setup Discussion

Frank explained the complexities of setting up a partnership for equipment leasing. He clarified that the initial expenses, including legal fees and a partnership agreement, are deductible for the investor who funds the partnership. He also discussed the depreciation rates for the equipment, which can range from 30% to 50%. Frank further elaborated on the creation of a new corporation from the partnership at the end of the lease term, which takes over the equipment and bank account, and the subsequent capital gains treatment for the limited partners. Kyle expressed his understanding of the intricate process and asked questions to clarify the benefits for each party involved.

Strategies for Tax-Advantaged Income From Equipment Purchases

Kyle and Frank discussed a potential strategy for companies purchasing equipment, particularly in cases where depreciation is a factor. They considered the possible application of this strategy in real estate, acknowledging that while the depreciation rate is lower, the numbers involved are typically larger. Frank indicated that such a strategy might not result in tax-free income but could provide tax-advantaged income. He also mentioned the potential for higher legal costs and broker fees in real estate situations. Both agreed that equipment is a more straightforward and widely applicable application of this strategy.

Creative Tax Strategies and Depreciable Assets

Kyle and Frank discussed the potential for creative tax strategies, specifically in the context of Canada’s complex income tax system. Frank shared his insights on the importance of looking at opportunities in depreciable assets, such as cement trucks, as potential tax planning tools. Kyle praised Frank for his approach and asked for details on how listeners could learn more about him and his ideas. Frank, who primarily uses LinkedIn, agreed to connect with listeners through the show notes.

Transcript:

00:00:00:03 – 00:00:16:14

Frank McGillycuddy

So now you’ve set up effectively a leasing but not a leasing company. Notice I’m not setting up a leasing company. It’s a partnership. So now your company is going to pay the lease payments on the lease is going to get to use the equipment that it has to use and the partnership allows the lease.

00:00:16:16 – 00:01:00:11

Kyle Pearce

Hey there. Canadian Wealth Secret seekers. Ever wonder if there’s a smarter way to arrange the ownership of equipment necessary for your incorporated business to operate while creating additional tax advantages for your corporation and for you yourself personally? Well, there is in this episode, Frank McGillicuddy will be sharing some Canadian wealth secret sauce as we unpack a creative and compliant entity structure that will allow your incorporated business to create more tax deductions for itself while the shareholders create income tax free or income tax advantaged for themselves.

00:01:00:11 – 00:01:32:20

Kyle Pearce

Simultaneously with Frank’s guidance, we will explore how to use the partnership structure with the owner of the company acting as the limited partner and an arm’s length individual acting as the general partner, and how this can allow for a massive net benefit for both the corporation and the shareholder. Imagine enjoying tax deductions for lease payments within your company while receiving tax advantaged personal income through a specifically designed partnership structure.

00:01:32:22 – 00:02:14:02

Kyle Pearce

It’s not just about minimizing taxes, it’s about maximizing your wealth and ensuring financial security for the future. How does it work exactly? Well, join us in this episode as we impact some important nuances that are necessary to ensure your investment is safeguarded and results in a fruitful outcome for all involved. Here we go. Welcome to the Canadian Wealth Secrets Podcast with Kyle Pierce and John.

00:02:14:02 – 00:02:44:02

Kyle Pearce

Or we are recovering high school mathematics teachers and education consultants whose entrepreneurial spirit led us to begin multiple business in real estate investment, digital courses and coaching and consulting after the bell rang at dismissal time. Fast forward a decade later where we’ve grown our portfolios and our time freedom to the point where we can now help entrepreneurs, business owners and investors to grow their wealth into a legacy that lasts generations.

00:02:44:04 – 00:03:13:10

Kyle Pearce

Through hidden investment and tax secrets. Your financial advisors won’t believe our true. All right, my friends, we’re going to dig in here with Frank McGillicuddy, and he’s going to help us to better understand this creative and compliant approach to structuring large equipment purchases by your incorporated business. Here we go. Well, well, well. Welcome to the Canadian Wealth Secrets podcast there, Frank.

00:03:13:10 – 00:03:39:11

Kyle Pearce

I am so excited to have you on the show. I had the opportunity to chat with you and have a really awesome high level discussion about what I think people are going to definitely interpret as a Canadian wealth secret that you’re going to be sharing here today. And it’s creative, it’s unique, it’s compliant and the beautiful part is I think it applies to many that are in the business world.

00:03:39:11 – 00:04:00:03

Kyle Pearce

So those people who are incorporated business owners, they’ve got this secret sauce sort of waiting for them. But before we dig in to that, tell people where you come into us from and what is your role, what do you do and what landed you in this place where you’re now sharing secret sauce ideas with audiences like ours here on Canadian?

00:04:00:03 – 00:04:01:08

Kyle Pearce

Well, secrets, Sure.

00:04:01:08 – 00:04:24:08

Frank McGillycuddy

Well, so my formal education is I did electrical engineering and I did an MBA, and then I did 25 years fixed income trading at TD Bank. And when trading bonds, fixed income as bonds. When you trade bonds, you generally have a situation where you have a set of rules and limits you have to follow both internally, but also with respect to what your customers can do.

00:04:24:10 – 00:04:47:15

Frank McGillycuddy

And then there’s the rules of the market. And obviously, you know, the bonds are not an investment that are going to double or triple or have a ten X type experience. So you’re really kind of working with a limited return space. So when I left that, I’ve always known that I’m by the way, I know a lot of the transaction I was working on before were driven by tax as well oftentimes.

00:04:47:15 – 00:05:07:12

Frank McGillycuddy

So I was curious about tax. And when I left that area, I decided to look at more in the tax because it reminds me of fixed income. There’s only so much you can make money from if you’re modifying your tax liabilities, right? If you’re paying the marginal tax rate, the most you could make on a on a transaction is 53%.

00:05:07:14 – 00:05:34:08

Frank McGillycuddy

If you live in Ontario, and that’s if you don’t pay anybody else to help you as soon as someone’s involved. Like obviously the fees have to be lower than your benefit. The point is there’s not a mass of equity type upside. So it reminds me tax planning reminds me of fixed income investing. And in both cases, when you trade government bonds and is the same as doing arbitrage or modifying your liabilities with CRA is a government counterparty.

00:05:34:08 – 00:06:03:00

Kyle Pearce

So I love it. Frank. That makes a ton of sense. So you came from this trading background and I love your description there of essentially it’s all about knowing the rules. You’ve got a box that you need to play with and you’re essentially looking for any sort of arbitrage inside that box. And when you start talking about the government bonds and you start to say, well, the rules changed slightly because the box changed slightly and the impact and the influence that that might have with taxes or no taxes are going to come in.

00:06:03:00 – 00:06:33:09

Kyle Pearce

And ultimately what ends up happening and where I think we’re going to be sending this conversation today is that especially when we have businesses, especially for those who are incorporated business owners or incorporated investors, that ultimately you’re looking to the rules and playing within the rules. But then how do these rules sort of intertwine, right? And how can we utilize these rules in such a way that it’s going to have a net benefit for us instead of it being sort of a negative?

00:06:33:09 – 00:06:33:18

Kyle Pearce

Right.

00:06:33:23 – 00:06:56:11

Frank McGillycuddy

Right. Yeah. If you accept the default vanilla, right, you accept the default from CRA, then that’s one way to go. But why not be a little more inquisitive, maybe a little more active and find out where are the opportunities if you arrange your affairs. It’s almost like order of operations. If you are an arranger or very certain or come with a different outcome.

00:06:56:13 – 00:07:10:00

Frank McGillycuddy

So would you prefer that outcome? Does that change to your current method? Is that are you okay with that? Because obviously getting solutions where people don’t want to do the solution that isn’t, that’s not going to work either.

00:07:10:02 – 00:07:35:18

Kyle Pearce

Right? Absolutely. 100% agree. And something that’s really interesting when I’m chatting with incorporated business owners is that ultimately what I hear and this isn’t new to me, but what I hear most often is that oftentimes they’re looking to say their accountants for creative strategies, right? Like they’re looking for the secret sauce, right? They want something more than just sort of the same old that plain vanilla as you’re saying.

00:07:35:18 – 00:08:02:16

Kyle Pearce

And the reality is, is that that’s not really a place that you’re going to find those tools, those ideas. Thinking creatively requires you to be thinking about very specific scenarios and really trying to think about how do we take what we know about that scenario and create a more positive outcome. And you can imagine as an accountant, you’re there not to give creative advice, but rather to ensure that how we book this thing is correct, right?

00:08:02:18 – 00:08:22:12

Kyle Pearce

So ultimately a lot of that heavy work falls on your own shoulders or it falls on finding other people in different spaces, maybe in a space similar to yours that have done this work, that have done this deep thinking and have find situations and scenarios that are going to actually give you a little bit of a better positive income.

00:08:22:12 – 00:09:01:17

Kyle Pearce

And obviously that outcome has to be significant enough for it to make sense, right, that the time, the effort, the capital that you might have to put into it is going to result in a worthwhile profit or a worthwhile benefit. So that I think sort of helps to set the stage a little bit here. And I’m really excited to dig in to this idea that you have because I found it really interesting you had reached out to me after sort of seeing some of the things we were sharing and that were looking for these sort of unknown compliant strategies that we could be utilize going in different scenarios.

00:09:01:17 – 00:09:20:17

Kyle Pearce

And I hopped on a call and you definitely blew my mind with a really awesome structure. So I’m wondering, can you paint us a high level picture? What is it that you’re going to be sharing with us, the Canadian Wealth Secrets community, and who does this apply to? And then we’ll try to get into some of the nuts and bolts.

00:09:20:17 – 00:09:38:08

Kyle Pearce

And of course, it’s an audio program. We will have this up on YouTube and we’ll be sharing the screen for those who want to dig a little deeper. But ultimately here, I think what we’re going to hope that people get is that, first of all, people that this could be helpful for are going to go. That’s me. Right.

00:09:38:08 – 00:09:59:12

Kyle Pearce

And then secondly, they’re going to get a general sense as to what it is and what the benefit is. They may not have a 100% clear path on how they’re going to do it, but we’re going to get them to identify themselves as this could be helpful for me. And it’s worth exploring some more and of course will be sharing your contact details on the show notes page.

00:09:59:12 – 00:10:06:14

Kyle Pearce

So give us a high level summary. What is it that Frank McGillicuddy is going to be sharing with us here today?

00:10:06:16 – 00:10:25:20

Frank McGillycuddy

So one of the things to think about what this does is it helps. There’s another method to new method or method. That’s actually one of the things I say to people who run businesses. Some of your competition is doing this already. I don’t know who they are because it’s all private transactions. But if you think everybody is that nobody you know is doing this, I think that answer is incorrect.

00:10:25:22 – 00:10:27:15

Frank McGillycuddy

There are people doing this already.

00:10:27:17 – 00:10:55:00

Kyle Pearce

Well, and if you think about it right, a secret, a true secret. Some people know about it. Otherwise you’ve created something. And we’re not saying this is something that’s been completely created. You didn’t wake up in the middle of the night and say, This is my idea, this is my thought process, but rather that you’ve connected the dots and in your exploration, you’re seeing that actually some of the more in-tune business owners and businesses have been creative enough to actually apply this.

00:10:55:00 – 00:11:10:01

Kyle Pearce

And what I’m hearing you say is that if some of your competition might be doing some of these things, they actually have a leg up because their costs are lower and your costs could be greater and that obviously gives them a much unfair advantage.

00:11:10:03 – 00:11:31:02

Frank McGillycuddy

So there’s two ways you can look at this method. And one of the ways to look at this is a way to take money out of a Canadian private corporation that you own. And it’s not a dividend and it’s not salary. And I think it’s more tax effective given all the various elements around it. The other way to think of it is you’re reducing the capital cost of equipment that your company uses.

00:11:31:04 – 00:11:50:10

Frank McGillycuddy

And actually I think it does both those things, but you might prefer one point of view versus the other. And so what you really doing is arranging a situation where you don’t own equipment inside your company anymore. You set up a partnership that leases the equipment to your company. So now you’ve set up effectively a leasing but not a leasing company.

00:11:50:10 – 00:12:17:02

Frank McGillycuddy

Notice I’m not saying but leasing company, it’s a partnership. So now your company is going to pay the lease payments on the lease is going to get to use the equipment that it has to use. And the partnership allows the lease income and the deductions for depreciation, which is also known as K, to go onto the personal income tax filing of the limited partner.

00:12:17:04 – 00:12:33:14

Frank McGillycuddy

Now, you can’t do this personally that you can’t do without the partnership. If you decided to buy an excavator and lease it to your company because you use excavators, Crane is going to deny you the depreciation on the personal income taxes because your related party can’t do this.

00:12:33:14 – 00:12:43:08

Kyle Pearce

Right non arm’s length is a no no. We need arm’s length here and we need to make this where some other partner is involved. I love it. I love it.

00:12:43:08 – 00:13:07:06

Frank McGillycuddy

Keep going partnership to that point has a general partner who has to be at arm’s length to the investor and also at arm’s length to the company that is going to pay the lease. And that’s the critical component for the partnership. So really what this does is it lets the company get a deduction on its lease payment the same way it would have if it did a deduction for paying you salary.

00:13:07:08 – 00:13:36:08

Frank McGillycuddy

But instead of salary you receive a cash flow. Usually it’s going to be matched by the depreciation expense. So it’s effectively creating tax free income as long as the depreciation is above zero. And then we have a way of, well, then what happens after that? What do you want to do? And there are a couple of different steps you could take to move the equipment into the corporation without triggering repayment of all the depreciation expenses you’ve taken on your personal tax return.

00:13:36:10 – 00:13:39:09

Kyle Pearce

Because we don’t want that recapture to be captured.

00:13:39:09 – 00:13:44:00

Frank McGillycuddy

What’s the point if you can’t get if there was no way around the recapture, I wouldn’t be having this conversation.

00:13:44:02 – 00:14:10:13

Kyle Pearce

Right, Right, exactly. Exactly. You just be kicking the can a little further down the road. And that’s not really in a lot of work. So what I’m hearing in this basic idea, and from my understanding when we had our conversation, there’s many different scenarios and there’s many different possibilities and approaches. But if we use this excavator idea for a second, I’ve got a company and the company is a party, right?

00:14:10:13 – 00:14:36:22

Kyle Pearce

And they need to purchase or they need the use of this equipment, but they don’t necessarily need to purchase this equipment. Right. And what I’m hearing you say is that they could actually instead a partnership could be formed which is not connected to the company. A partnership would purchase this equipment and would agree to lease that equipment for a fair value.

00:14:36:22 – 00:14:59:06

Kyle Pearce

Right. A fair value to the company in order for this to take place. Now, tell me a more about who would actually be involved in the partnership, the LP and the GP. How does the company fit in and how does say, a shareholder of that company fit into this equation, or do they fit into this equation?

00:14:59:08 – 00:15:21:02

Frank McGillycuddy

Well, they certainly do it. And so the company that’s signing the lease, they’re the ones that need the equipment and will agree to pay the lease. I do think that in general the lease expenses from this kind of arrangement is probably going to be lower than what third party leases tend to be. But there’s no reason why you can’t agree to a different arrangement than somebody else does.

00:15:21:04 – 00:15:38:02

Frank McGillycuddy

So I think there’s a benefit to the company in that is probably going to be lower cost. So in some sense you’re increasing the profitability of your company, all things being equal, which is pretty good. And then the owner of the company will be the limited partner who has nothing to do with the day to day running of the partnership.

00:15:38:04 – 00:15:59:02

Frank McGillycuddy

The general partner is the person whose duties and obligations are listed in the Partnership Agreement. Partnership Agreement is kind of your DNA for a partnership. Here’s what we’re doing over leasing equipment. Okay? When we buy excavators and we lease, let’s do this. And you know, obviously the partnership, the general partner is to open a bank account for the partnership.

00:15:59:04 – 00:16:22:08

Frank McGillycuddy

And that’s where the limited partners funds will be deposited until they buy the excavator. And then they by the way, they signed a lease with the company and now everything starts to flow. And from the point of view of the limited partner who owns the company, there isn’t any business risk because they’re leasing equipment to themselves. So they were a different party.

00:16:22:10 – 00:16:38:17

Frank McGillycuddy

They would look very differently at the at the risk of leasing an excavator to a company, but because they’re a limited because of the limited partner actually owns the company, it’s a tight loop. But because a general partner is at arm’s length to all the parties, the partnership is at arm’s length to all the parties.

00:16:38:19 – 00:17:02:01

Kyle Pearce

So it sounds to me like the most important piece here is the GP, and the GP is at arm’s length from the company and the shareholder, meaning I can’t come in and I can’t go, oh, I mean I’m going to create a partnership, I’m a shareholder, I’m going to be the LPs and the GP because that’s not a real partnership and it’s not arm’s length, so that’s a problem.

00:17:02:03 – 00:17:19:08

Kyle Pearce

I also can’t grab my wife or my spouse who is say, a shareholder or I mean, she’s arm’s length to me, so that may not work. Who’s the closest individual that would be non arm’s length that could potentially act as the GP?

00:17:19:11 – 00:17:41:14

Frank McGillycuddy

I presume this could be I probably won’t be your accountant, probably won’t be your lawyer because these people already have relationships with you. It could be a person who was previously your accountant or previously your lawyer some time ago. I guess possibly you might find them there. You might find them in your business network of people who are trusted or known, but not in business with you.

00:17:41:16 – 00:18:05:07

Frank McGillycuddy

And one of the ideas I have thought up is even though I’m proposing that I, of course be the general partner for partnerships, but part of where I see myself being involved. But to be fair, if the company, a company be the owners of company in company B, if they are both creating partnerships of similar value, they could barter the general partnership transaction across each other.

00:18:05:09 – 00:18:13:01

Kyle Pearce

Got it? Got it. So it’s like scratch your back. You scratch my back. But again, company A and Company B are both at.

00:18:13:01 – 00:18:14:22

Frank McGillycuddy

The same risk. So.

00:18:14:22 – 00:18:16:08

Kyle Pearce

Exactly, exactly.

00:18:16:08 – 00:18:26:17

Frank McGillycuddy

Surprised That’s never been done. But I could see where that might be hard to arrange. Also, because you need the same timing, the same amount of money. It may not work for a variety of reasons.

00:18:26:19 – 00:19:06:20

Kyle Pearce

Sure, sure. And what I do here as well is that while I’m a believer coming from the education sector originally, I’m a believer that you can do anything you put your mind to the real question is, is do you have the time? Do you have the willpower, the ambition, the drive to make sure that all of your teaser croppers and your eyes are dotted in my mind what I see business owners, if they’re going listen, if there’s an opportunity here for me to because I’m picturing a typical business owner, if if I’m listening right now, I have one in mind, actually, someone I know very well who has a landscaping company and they do sod

00:19:06:20 – 00:19:44:05

Kyle Pearce

and they have equipment and they have all kinds of things. Matt, you know who I’m talking about here. Model will hear this in the episode when it goes live, but I’m picturing him right now saying, okay, right now we either purchase equipment in by our company or we may even be leasing from some other place. And what you’re saying is that there’s actually an opportunity here in both of those cases where you could potentially solve that problem and potentially make either I don’t have to come up with all the money in the company this moment, or if I was going to pay, I could now have that payment happen inside this LP.

00:19:44:07 – 00:20:03:15

Kyle Pearce

And then the GP is going to manage this for me and then we’re going to lease to our company. I’m going to receive a tax deduction in my company. What’s happening on the let’s pretend I’m I own the business. I’m picturing Matt right now. He owns his business. He’s about to buy a piece of machinery. Will assume it’s an excavator.

00:20:03:15 – 00:20:27:21

Kyle Pearce

In this particular case, he’s about to do it. And then he hears this episode and he says, You know what? I’m going to explore this partnership idea. And maybe even he calls Frank and says, Frank, let’s do this together. Let’s make this profitable for both of us. How do we do this thing? So am I understanding correctly that it’s most likely that, say, Matt himself, the business owner, would be bringing the money to the partnership?

00:20:27:21 – 00:20:36:21

Kyle Pearce

Correct? Or could it potentially be somebody else that brings the money to the partnership? Or does that sort of watered down the impact or the effect that he’s going to receive?

00:20:37:01 – 00:20:58:01

Frank McGillycuddy

Well, so in my mind, it’s the business owner who becomes a limited partner because they then perceive the transaction with no business risk. If it’s a third party. The looking at Matt’s company and saying, okay, I like Matt, but now I put $100,000 excavator in his hands and he’s paying me a lease payment. Yeah, maybe I have to have insurance here too.

00:20:58:05 – 00:21:15:24

Frank McGillycuddy

Versus quite frankly with the owner who’s a limited partner might say we don’t need to pay insurance in the partnership. How they perceive the risk of all of this is very different because they own the company and they’re providing both. But let’s not gloss over the fact Matt has to be able to come up with the money himself, both outside of his company.

00:21:16:01 – 00:21:21:00

Kyle Pearce

Right. He’s not borrowing he’s not doing a shareholder loan to himself or anything.

00:21:21:00 – 00:21:40:12

Frank McGillycuddy

So if he’s fully tapped out on his own line of credit and doesn’t have any money and would choose not to liquidate investments to do this, and the money is only available inside this company, then he can’t do this. There’s a condition of great idea, can’t go beyond step zero.

00:21:40:14 – 00:21:59:19

Kyle Pearce

Right. What I’m hearing you say is, well, and this makes sense is that by bringing in, say another person, say in a separate investor into this LP world, we now have three parties. So it introduces an additional roadblock. Right? It’s a bit of a speed bump. Now I have to make sure that, you know, the agreements are tighter.

00:21:59:19 – 00:22:25:17

Kyle Pearce

We have to make sure that the company I want to see all your finance files. I want to make sure that who are your creditors. And so is it possible it sounds like the answer’s yes. The next question then becomes, is it too hard where maybe it’s not worth it. In that case, maybe you’d have to explore? Or is it going to be profitable enough to, say, attract someone to want to invest in this opportunity?

00:22:25:17 – 00:22:47:16

Kyle Pearce

Right. And I know for you, let’s pretend there’s not an outside investor for a moment. Let’s pretend it’s Matt, the company owner. Why might there be a case for, say, a guy like Matt to say, liquidate some assets? I know this particular Matt actually has a participating whole life policy he might be able to leverage, but let’s say he’s got assets there.

00:22:47:18 – 00:22:58:02

Kyle Pearce

What kind of return might he get, say, in this world versus in the investment world? And I hope I’m not putting you on the spot there when I ask, but I.

00:22:58:02 – 00:23:07:08

Frank McGillycuddy

Think I mean, on the spreadsheet that I shared with you before, I think it’s double digits. I think it’s probably 1550 to 20% before taxes equivalent.

00:23:07:11 – 00:23:38:16

Kyle Pearce

So it could make sense that even a business owner who is maybe tapped and they’re going, look, I’ve already sent promissory notes to my company and I’ve already this, I’ve already that, but maybe I’ve got this investment over here personally held. Right. So again, we’re not talking about corporate assets here. We’re talking about bringing this in and going, well, I mean, the other option was that I was going to potentially loan this to my company in order to make this purchase, or I could send this money to this partnership.

00:23:38:20 – 00:23:52:19

Kyle Pearce

And through this partnership, I could then fund this opportunity and actually be net ahead in both cases where I’m saving the company money, which is mine, and I’m also earning a decent return on my end as well.

00:23:52:19 – 00:24:20:11

Frank McGillycuddy

Yeah, that is a great way to summarize the whole scenario here, I think. Yeah, I mean, but let’s also say this, that if Matt wanted to Matt’s relations children, spouse, there’s no reason unrelated people couldn’t if they all see the transaction the same way because they are related, they can contribute capital to the partnership and they’re also not going to see a ton of risk with investing in an excavator that’s being leased to the company that the family owns.

00:24:20:13 – 00:24:48:13

Frank McGillycuddy

So it could be a mixture of Matt and his relations and or even Matt and his employees because they’re related and they understand it and they see it and they go, I’d like to have a shot at that to be part of this. I mean, that’s you couldn’t rule that out also. But I would say that anybody who’s not related is probably going to is maybe going to see it differently because they’re making a private debt almost like a private debt investment modulated through the format of a partnership.

00:24:48:15 – 00:25:08:08

Kyle Pearce

Exactly. So kind of where I see it as first of all, and this is what makes private investing more challenging, Right. And why less people do it is that, first of all, in this particular case, you have the business owner who first needs to understand this process is a possible a reality, right? So there’s understanding there’s work to be done.

00:25:08:10 – 00:25:30:09

Kyle Pearce

Folks who are listening to this podcast are probably those people, right? They listen and they’re trying to better themselves and understand. But then the next roadblock becomes, okay, if it’s not me who’s the actual investor in this, I now have to bring someone else along. And that becomes, again, a bit of a hurdle. Of course, there’s ways that you can mitigate that, and that’s what private funds do.

00:25:30:10 – 00:25:51:17

Kyle Pearce

That’s what they have to do. But that means there’s going to be a bigger return, which is good. But that also means the risk does increase. It doesn’t have to be super risky, though, as long as you have essentially protected yourself with the appropriate agreements, you’ve done the due diligence, you make sure that, hey, listen, is this company generally successful?

00:25:51:21 – 00:26:22:12

Kyle Pearce

What are we going to do when payment isn’t made? Having yourself protected in that way, that’s where the legal piece comes in and you go, okay, I accept this idea in theory. Now let’s run this by our legal team. And in a perfect world, you’d work with someone who’s done this structure before. Hint, hint. I know someone, and that person would likely already have quite a few of the or essentially the roadblocks removed right from the legal process and the verbiage in the agreements and things like that.

00:26:22:12 – 00:26:48:13

Frank McGillycuddy

Allow me to interrupt and say make a point. This also is that if you went around and said, Hey, Matt, hey, would you lend money to my company, people are going to go, That’s a big ask, Matt. That’s a big ask. I’m not lending money to your company. Would you buy an excavator and lease it to me? So now, with securitized lending, providing of capital in the form of an excavator, which if Matt screws up and doesn’t pay enough lease payments, they’re going to come seize it back.

00:26:48:18 – 00:26:55:21

Frank McGillycuddy

It’s a thing. It’s almost like a landlord rental. Without a tenant, there’s no one living in them. But you can see it’s simpler.

00:26:55:23 – 00:27:19:22

Kyle Pearce

And it’s like, Hey, can you stomach buying an excavator you never wanted knowing that worst case scenario, you might become a farmer, you know? No, But ultimately, at the end is exactly what you’re articulating here, is that, you know, if those payments do stop, that you have the legal recourse, Right, to actually take that equipment back. Right. So it is secured, which is much better than legal partner.

00:27:19:23 – 00:27:27:07

Frank McGillycuddy

The demo part is going to act on behalf of the partnership and do that for you because it is the general partner’s job is to look out for the partnership.

00:27:27:09 – 00:27:44:08

Kyle Pearce

Exactly. Exactly. I love that. What do you say we take a little bit of time here? I’m going to open up and share my screen and we’ll go through a general scenario and we’re using is $1,000,000 excavator I think that we’re going to be looking at for today.

00:27:44:08 – 00:27:47:22

Frank McGillycuddy

Obviously, more than one excavator. But let’s say it’s a pool of excavators, right?

00:27:48:01 – 00:28:06:12

Kyle Pearce

I love the million dollar number just because it’s so scalable. Right. There’s no, say, minimum amount. You even articulated in our meeting recently that, hey, if you wanted to, you could do the same thing and do this on washing machines and dryers for a laundromat. The equipment size really doesn’t matter. It can be big. It can be small.

00:28:06:12 – 00:28:32:11

Kyle Pearce

Ultimately, does it help to serve the need? And really what it sounds like to me is that the key to this working is, again, just making sure it’s win win for everyone, right? So, I mean, finding a GP that it’s going to be either worth their time, it’s got to be worth their time finding an owner of a company who sees the benefit on both sides or in that other case where you bring in an investor, what’s it going to look like for the investor?

00:28:32:11 – 00:28:50:05

Kyle Pearce

So you’ve got to do a little bit more heavy thinking. Why does that investor want to come in and actually do this? How are they going to win? How are you going to win? How is the GP going to win? And ultimately, at the end of the day though, I mean as a business owner, as an entrepreneur myself, it’s like this is the kind of thinking that we love to do, right?

00:28:50:05 – 00:28:51:24

Kyle Pearce

I mean, that’s why we’re in this industry.

00:28:52:01 – 00:29:07:08

Frank McGillycuddy

And it’s also the kind of thinking that if you go to talk to your banker and say, I need capital for my company, they’re not going to talk like this because we’re talking kind of open ended and who knows where the funding is coming from. If you’re talking to the banker, I can tell you where the answer is coming from.

00:29:07:08 – 00:29:20:17

Frank McGillycuddy

It’s coming from borrowing from the bank. That’s the only answer they’re interested in because unfair. That’s what they get paid to do. But so these kind of thinking, I don’t know, quite frankly, how many other professionals will bring this up.

00:29:20:19 – 00:29:40:00

Kyle Pearce

I love it. I love it. Well, I think what this example that we have up on the screen, it should be up there for your screen to see as well. They’re frank, but depending on this screen here, we’ve got two scenarios. So we’re going to be investing $1,000,000 in equipment. So again, you’re keeping it general. It could be a number of machines.

00:29:40:00 – 00:30:12:15

Kyle Pearce

It could be one machine. That’s a very a very expensive piece of equipment. It doesn’t matter. And I’m going to ask that you kind of go through this with us at a high level. For those who are listening on the podcast right now, hearing it through is, again, you don’t have to necessarily follow all the numbers to the tee here, but you can find it on YouTube If you head to our website and head to Episode 79 Canadian while secret score I’m forward slash episodes seven nine, you’ll be able to see the YouTube video and be able to kind of have a look at this spreadsheet with us.

00:30:12:15 – 00:30:25:01

Kyle Pearce

But I’m going to turn it over to you. Take us through this scenario so that people who are listening can actually start quantifying the actual benefit of doing this type of thinking engagement.

00:30:25:03 – 00:30:44:07

Frank McGillycuddy

Right? So it’s funny, I’m going to start on the bottom of the list, which is the legal expenses. And I just put a number there because you could spend that much. But as far as obviously legal expenses, you could find someone who might do it for half that amount. But I don’t think you want to have a partnership where you don’t have it properly structured with a lawyer, with a partnership agreement.

00:30:44:11 – 00:30:54:16

Frank McGillycuddy

So there’s going to be some number there, whether it’s 20,000 or 10,000 or 5000 or 40,000, it’s going to be up to the people involved to figure out what that number. But that’s what.

00:30:54:18 – 00:31:14:13

Kyle Pearce

I have a funny feeling that the larger the investment in the equipment, the larger I’m going to want that legal expense to be, because it means I’m going to make sure that I’ve got the best team. Maybe it’s going from a small to a medium or a medium to a large firm. Definitely. So that’s a variable. It’s not necessarily set in stone.

00:31:14:13 – 00:31:24:19

Kyle Pearce

You’ve put 20,000 because that seems reasonable or at least a reasonable number in comparison to the actual investment of $1,000,000 in equipment.

00:31:24:21 – 00:31:51:04

Frank McGillycuddy

And on the count and on that, legal expenses are pretty straightforward because it’s not real estate law, it’s corporate contract law. There’s just going to be a need to have a partnership agreement, and I’m going to have to have a lease. So and whether some of these expenses could be happening outside the partnership or inside the partnership. But in any case, they are going to be deducted by the investor who funds the partnership.

00:31:51:06 – 00:32:09:07

Frank McGillycuddy

I think that the 20,000 is probably out of pocket before the partnership exists, but that person can write that off against taxes, which I show down in other parts of the spreadsheet. So all of these impacts later on that legal. SPENCE you have to start with it has to be something then there’s just above that is the depreciation rate of the equipment.

00:32:09:09 – 00:32:33:08

Frank McGillycuddy

So there’s a range of depreciation probably for this activity. We’re going to it’s going to between 30 and 50% depreciation. And depreciation just says we can’t expense a capital item in the year that you buy it. You can’t expensive for $1,000,000 even though it cost you $1,000,000. There’s rules that the CRA has for how to spread out that cost over a number of years.

00:32:33:10 – 00:32:53:00

Frank McGillycuddy

In this case it’s 40% GP fee is effectively what are you going to pay the GP to do this activity again, I picked $200,000 just for this one, but obviously it could be less. I don’t really think it would be more, but in any case, that’s a number that also is tax deductible. So the investor in the partnership.

00:32:53:00 – 00:33:18:07

Frank McGillycuddy

So notice line six, the investor has enough tax liabilities to deduct all the expenses. There really isn’t much point in creating a partnership of a size where the person has a surplus of tax deductibility and they’re like, I can’t I can’t make use of this. This is stupid. It’s an academic conversation. It’s not real. Yeah, so but it’s important to say that the second line from the top is the residual equipment.

00:33:18:09 – 00:33:38:08

Frank McGillycuddy

Even though you may have depreciated it down below 20, $50,000, it may be that the market for these excavators in year five will be a quarter of $1,000,000. So in that case, that’s the number that that you’ll be using. Now we’re going to get into what happens at the end of the life, at the end of the lease.

00:33:38:10 – 00:34:05:21

Frank McGillycuddy

At the end of the lease, what we do is we create a corporation out of the partnership and the limited partners are the people who own the corporation and the general partner is no longer part of the conversation. The general partner doesn’t exist anymore, isn’t needed. Their role is finished. We now have a new corporation that came out of the partnership and the only thing that new company owns it has a bank account and it owns excavators.

00:34:05:23 – 00:34:29:11

Frank McGillycuddy

That’s it doesn’t have any employees. Does that too simple? It’s like a shell, if you will. But it’s not a partnership. It’s a operate. It’s a company itself. So now you could have the company that was previously paying the lease is going to pay for this company, pay the $250,000 for the company whose only asset are the excavators.

00:34:29:13 – 00:34:32:19

Kyle Pearce

That’s how they had a bank account with nothing in it.

00:34:32:21 – 00:35:11:22

Frank McGillycuddy

And they take over bank account also. So now notice what we’re doing is we’re moving the equipment not by selling the equipment because if you sell the equipment, you got to repay the depreciation benefits you’ve had in the previous years. We’re creating a corporation which we then sell to the OpCo, which is previously paying a lease. And now that equipment is inside the OpCo and you get a capital gains treatment in the hands of the Limited, the previous limited partners who are now the shareholders of the new company, they get a capital gain of the 250 if it’s only this is over the under-appreciated balance that’s the capital gains treatment.

00:35:11:22 – 00:35:36:01

Kyle Pearce

They’re very nice. So this makes a ton of sense. It’s making sense as to how this structure works. I now see I mean, clearly the GP is going to earn something for this and obviously the GP and the LPI have to decide what that is to make it worthwhile for them and vice versa. So now how does the LP, where is the LP winning?

00:35:36:01 – 00:36:14:22

Kyle Pearce

So the corporation didn’t purchase the equipment initially, the original corporation didn’t purchase the equipment. The equipment was purchased inside this partnership, the LP, which is also the shareholder of the company, is now likely, as you mentioned, in the most likely sense is probably funding the purchase of that instead. How do you see the LP benefiting here? Is that lease payment made to a point where the profitability is significant and is there a sweet spot where it’s like the lease payments should be following the depreciation announcement statement?

00:36:14:22 – 00:36:18:15

Frank McGillycuddy

If you want to show more of the spreadsheet here, but you probably don’t see people’s eyes.

00:36:18:17 – 00:36:21:05

Kyle Pearce

Going, Oh, I do. I do. I will. I will go down.

00:36:21:08 – 00:36:43:00

Frank McGillycuddy

So if you go over off to the right and little down a little lower, you’ll see that the creation schedule, which again is people say, what the hell is this? Yeah. So effectively we want these payments to match the annual allowance. So in the first year, the lease payments, 200,000, because that’s the most you can get in terms of depreciation.

00:36:43:02 – 00:37:13:04

Frank McGillycuddy

And so effectively, I don’t think the company would ever see a lease payment this low for equipment, this expensive. I could be wrong, but I’m pretty sure and any case when you’re matching the lease payments, the depreciation, then you’re maximizing the tax benefit and the return of capital both at the same time to the investor. And you can see it at the end of year five, the cumulative lease payments is a little over $895,000 that’s been made to the partnership.

00:37:13:06 – 00:37:41:23

Frank McGillycuddy

If you go directly up from there, I think you will find so the cost to the OpCo to pay the five year lease is an 895, right? Because it’s deducting all those expenses on its income. Now, again, it has to have enough tax liability for it to deduct the lease payments. I presume it does. So using the corporate tax rate of 27%, 895 really only cost you 658 So the company after tax expense.

00:37:41:23 – 00:38:05:22

Frank McGillycuddy

658 but the investor in the limited partnership has received around 895 less of the obviously the general partner fees. And so there are fees, but that’s it. But by the same token, the general partner expense also generates a tax benefit. So and I put that over, I put a there’s a column of all the five year total, if you will, in column B there.

00:38:05:24 – 00:38:27:07

Frank McGillycuddy

And that shows you why the total received by the LP over five years is the 895 or a little over 895. And then you have to pay the GP, but you get to deduct that also. Then I include the legal expenses because I guess on end these are all for the whole five year experience. These are not annualized, this is for the five years.

00:38:27:07 – 00:38:27:24

Frank McGillycuddy

Right.

00:38:28:01 – 00:38:57:02

Kyle Pearce

Right. At a high level here, I should state it. We stated at the end of the podcast, but this is not legal or investment advice, but from a very high level discussion, this is definitely a a structure and an approach that is certainly worth exploring for any company that is purchasing equipment where depreciation is a factor, where a depreciation is being integrated.

00:38:57:04 – 00:39:19:19

Kyle Pearce

My wonder is and I’m sure there will be some nuances here that you’d like to tie a bow on, but I’m picturing there’s so many people out there that I know in the audience that are real estate investors. Do you see a place where something like this makes sense in real estate? And if the fact that it is typically land sounds to me like probably not.

00:39:19:21 – 00:39:44:00

Frank McGillycuddy

So one of my accounting friends is a pretty senior fellow at MMP, and when I bounced this idea, I said, Am I crazy? And you do this because you can do it all you want. It goes, But this is too small because we only do real estate stuff like this. So if you want to talk about ten, 20 million, $40 million partnerships to own real estate and, boy, yeah, they use exactly the same idea.

00:39:44:00 – 00:39:55:01

Frank McGillycuddy

But the depreciation rate is way lower. It’s some four or 5% right now. The numbers are bigger, but the depreciation is lower and you can’t get in there with $1,000,000.

00:39:55:03 – 00:40:06:08

Kyle Pearce

Right. So if the number is large enough, then having that lower depreciation amount still going to make a significant difference. But I’m guessing that, you know, if it’s a low deal, maybe not.

00:40:06:10 – 00:40:30:13

Frank McGillycuddy

The way I describe this is that for those kinds of things, you won’t get taxed three income because you won’t be able to match your income with a deduction. You’re going to have tax advantaged income. And then I think they also do the flip the partnership into a corp, sell the corp with a depreciated item inside it because they’re trying to avoid they’re trying to get capital gains treatment really.

00:40:30:13 – 00:40:45:05

Frank McGillycuddy

Yeah, exactly. So, so I do know that it does happen in real estate, obviously not personal real estate, but then I think your legal costs going to be a lot higher too. Like a lot of these costs indicated here. If you get into real estate, it’s going to be a lot higher and you’re going to pay a broker, right?

00:40:45:05 – 00:40:54:15

Frank McGillycuddy

Like the equipment is a little more straightforward and but it’s also way smaller. It applies to way more companies than the real estate version of this.

00:40:54:21 – 00:41:27:04

Kyle Pearce

For sure. For sure. Well, Frank, this has been an amazing discussion. And I think you done I was going to say we but really all I’ve been doing is sort of following along with you here. And you’ve done a great job in giving a high level understanding a Canadian wealth secret that is there and is right on a platter and is worth at least exploring, especially for those folks who do have to purchase equipment, who do have to purchase depreciable assets for their companies.

00:41:27:06 – 00:41:56:22

Kyle Pearce

And even just this discussion, I’m going to argue that even if it doesn’t directly apply to the listeners, I think you’ve opened up sort of a new neural path for them to kind of keep their ear to the ground and start looking around. And the beautiful part about this, as complex as the Canadian income tax system, is the reality is, as with that complexity comes opportunity for creative and compliance strategies.

00:41:56:22 – 00:42:19:21

Kyle Pearce

And it really just takes the right thinking, the right people that open mind and then, of course, the necessary research to make sure that you are in fact following a process that does make sense. So ensuring that folks, if you’re interested in digging deeper into this, I know, Frank, you’re going to be sharing your contact information on the show notes page.

00:42:20:01 – 00:42:42:03

Kyle Pearce

Is there anywhere else that or in basically before I ask you to share where they can find you before you do, what would you say is your big I mean, I think this entire episode is a magical secret sauce for people here. But what would you hope that they walk away from after listening to this episode? What’s the big takeaway you hope that they take with them?

00:42:42:05 – 00:43:04:20

Frank McGillycuddy

Well, I think every time they see a cement truck, they should think about tax planning because it’s it’s a great love it. It’s a great big rolling piece of depreciation. And your question should be, I wonder if that’s owned inside a partnership or a company. I love that in a company that’s an expensive piece, equipment that you really like it could you could anybody have funded that outside like that’s and if you’re not, you’re just missing an opportunity.

00:43:04:22 – 00:43:21:02

Kyle Pearce

Wow, that’s such a great one. Now, every I see a cement truck, I’m not going to think about that. I’m going to be thinking about Frank. So, Frank McGillicuddy, thank you so much for joining us here today. Where can folks find more about you? And then, of course, we’ll be linking everything up in the show notes.

00:43:21:03 – 00:43:39:04

Frank McGillycuddy

Well, I’m effectively only on LinkedIn. I don’t have a website for my business because I really don’t have a business in the sense that you would have as a financial planner. And I work with some variety of other tax professionals. Some of them have websites. But yeah, I mean, my name and LinkedIn is all you need. You can get a hold of me.

00:43:39:06 – 00:44:14:22

Kyle Pearce

Beautiful. Frank It’s been an awesome, awesome opportunity here. And I know that the Canadian Wealth Secrets community thanks you for taking some time to share this secret sauce with them today. I will link up your LinkedIn profile on the show notes page Friends. This is going to be episode 79, so head on over to Canadian Wealth Secrets dot com forward slash episode 79 to dig in and my friends, hopefully we’ll stay connected here with Frank and I’m sure Frank you seem like the type of guy that you’re going to have a new idea coming up at some point soon and you’re going to want to share it.

00:44:14:22 – 00:44:18:15

Kyle Pearce

So we appreciate you for that. And thanks again.

00:44:18:17 – 00:44:19:23

Frank McGillycuddy

I have more ideas.

00:44:19:23 – 00:44:34:02

Kyle Pearce

Yeah. Yes, there you go. There you go. Awesome. Awesome. So you start thinking about the next one. You want to share. Who knows? Might even become a regular spot for Frank. So we appreciate you and I hope you have an awesome day. And friends keep on speaking.

00:44:34:04 – 00:44:35:24

Frank McGillycuddy

Thank you very much.

00:44:36:01 – 00:45:06:17

Kyle Pearce

Well, now, my friends, I hope you found that there was some secret sauce for you in there. Even if you are a business owner and haven’t quite been at a place where you see large equipment purchases being necessary, I want you to start recognizing at a high level that our tax system provides for different creative strategies that can compliantly allow you to minimize taxation in order to maximize your investment and wealth in the long run.

00:45:06:19 – 00:45:32:17

Kyle Pearce

So keep your mind open, your eyes and ears open, and make sure that you’re constantly looking for strategies that you can apply to your businesses. Or on the personal side, if you’re curious what strategies might be out there for you in your business or for you personally, make sure to reach out to Canadian wealth secrets dot com forward slash discovery so you can book a free discovery call.

00:45:32:19 – 00:45:59:22

Kyle Pearce

We’re here to support you in finding your next step in your journey so that you can minimize taxation and maximize wealth all throughout. All right, my friends, if you haven’t yet, do us a favor and share this podcast in the same way that you found it. Maybe someone shared it with you, you saw it on social media, whatever it was, do us a huge solid and share it so we can continue to grow this community.

00:45:59:24 – 00:46:22:05

Kyle Pearce

Also, a huge, huge thanks to those who head to Apple Podcasts and leave us a rating and review. Those go a long way to making sure that we are actually shared with a wider audience. All right, my friends head on over for links, resources and transcripts to this episode and other episodes over on the Canadian Wealth Secrets dot com website.

00:46:22:07 – 00:47:05:00

Kyle Pearce

This one is episode 79. So head to Canadian Wealth Secrets dot com forward slash Episode seven nine. All right, Canadian Wealth Secrets Seekers will see you next time. Just as a reminder, this is not investment advice. It is for an entertainment purposes only. The content is for informational purposes and you should not construe any such information as legal tax, investment, financial or other advice.

00:47:05:02 – 00:47:25:08

Kyle Pearce

As a reminder, John is a mortgage agent with Brick’s mortgage license number m23006803. While Kyle Pierce is a licensed life and accident and sickness, insurance agent and wealth creation architect with the Palm Court team that includes corporate advisors and pan financial.

Canadian Wealth Secrets is an informative podcast that digs into the intricacies of building a robust portfolio, maximizing dividend returns, the nuances of real estate investment, and the complexities of business finance, while offering expert advice on wealth management, navigating capital gains tax, and understanding the role of financial institutions in personal finance.

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