TaxCycle | Products | Pricing | Training | Documentation | Support | News

Marginal tax rate data monitors

Our firm is just transitioning over to TaxCycle, and we have a minor feature suggestion that would be extremely useful for tax planning!

Our core client base is owner operated corporations. When advising these clients for tax planning, and deciding on what amount of income to draw out of the corp, we always analyze the marginal tax rates to guide our decisions. To help with this, we’re hoping you’ll consider creating a new worksheet that provides a tax rate analysis of marginal rates for various types of income (eligible/regular dividends, employment, etc.). I’m hoping we could then rely on the worksheet cells to create some data monitors.

I realize the effective tax rate is shown on the T1 summary; however, we don’t feel the effective rate is very relevant when optimizing tax plans. Please let me know if the marginal rates are hiding on us somewhere, and my apologies if this suggestion is posted elsewhere - I’d be surprised if this was the first request, but I can’t find a similar thread.

Thanks for your consideration!
Rick

1 Like

I also miss this from the ProFile days, and posed the question at a Trilogy seminar a few years ago. Cameron’s answer then was a direct reference to your request i.e. for which type of income should the program calculate a marginal rate.

While I agree that your request would be great (i.e. multiple marginal rates), I’ve often thought since that my answer at the time should have simply been ‘taxable income’.