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How do I get money out of the CIC?

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First, if there is a loss by the operating company that is covered by any policy issued by the CIC , then the operating company is entitled to payment under the policy. Second, since this is untaxed money, this should not be the first place you go for funds. However, when the time comes, distributions from the CIC are taxed as qualified dividends and if the CIC is dissolved the gain is taxed as long term capital gains (assuming the CIC has been in place for more than a year). Rates on both qualified dividends and long-term capital gains are currently 15%. There are some other methods of reducing the tax on the liquidation of the CIC but that discussion is beyond the scope of this introduction.

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