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| *The Commerce Journal>>>Canada Taxes |
If a couple earns over 65 k a year in canada, what are some ideas for tas reduction? |
like can buying rental property be a tax write off? 1) Buy RRSP. In fact, maximize it if you know you are not going to move up to a higher tax bracket in a year or two, and you don't need the money until retirement. 2) Borrow to buy capital gain generating investments (e.g. stocks) outside of RRSP. This way, you can deduct interest now (at 100%), and pay capital gain tax at 50% in the future when you sell your investment. But of course, you have to consider your own risk-tolerence. 3) Own a home-based business. If you don't want to be involved in network marketing, create your own business, any business. Then, you can write off all business-related expenses, like business-related travels, meals (at 50%), wages, portion of your home expenses, etc. However, the business needs to have a reasonable expectation of profit. Therefore, if you generate losses for too many years straight, then you may be questioned. To deduct home expense, see requirements at http://www.cra-arc.gc.ca/tax/business/to... 4) Buying rental property could result in tax savings in the first few years. 5) Maximize whatever deduction or credits you are entitled to at tax filing time. A list of deductions and credits can be found here: http://www.cra-arc.gc.ca/tax/individuals... 6) Move to a low tax province, like Nunavut. Move to another country where the taxes are lower. Buy a house - best longterm investment ever. Buy RRSPs. |
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If you buy the rental property personally, then any net rental losses will decrease your taxable income, and thus your personal tax payable. It is very possible (especially in the first ... Just a word of advice. Sometimes Canada Post will charge you a service fee for collecting the tax. If UPS delivers it, expect a huge bill called a "brokerage fee" Don't... Vacation pay is a standard deduction for most employees, based for most at 4%. Some contracts negotiate a higher rate. It is there, so when you take holidays you still have pay coming in ... If he is actually an employee, then no, you can't just pay him as a contractor. This determination is based on the relationship between you, and not just what you decide to call him and... Actually CRA has a calculator, but you should know that each province has a different rate of provincial tax. Here is the caculator: ... I'd assume you will need a Canadian answer. You can actually check the CRA website regarding deductions - they have an online calculator that at least covers the federal deductions fo... As a Canadian living and working in the US you may or may not have to pay US taxes. Double check here: ... you can get prepaid credit card with your parents permission. if your parents are ready for it, apply online at: ... |
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