What’s my RRSP contribution limit for 2020?
Canadian citizens having earned income and have a social security number and have filed a tax return may contribute funds into a Registered Retirement Savings Plan(RRSP) to reduce the amount of income taxes paid. This can be done each year until the individual’s spouse reaches the age of 71. RRSPs can be opened in financial […]
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How does income from a rental property create RRSP contribution room?
A retiree has rental income both here and abroad. He is responsible for reporting profit made on those incomes both here in Canada and abroad. Foreign and domestic incomes from rental properties are eligible to increase your earned income, which is used to calculate your RRSP contributions room. If you have property in other countries […]
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Are RRSPs really worth it? The answer may surprise you
It is readily apparent to those in the financial sphere that RRSPs cause consternation to many, with a fair amount electing to not contribute to them, calling them a waste of time and effort. However, at least one financier has to note that the decision is not one that should be written in stone in […]
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Prep Your RRSP, Because 1 Major Mistake Can Be Penalized by the CRA
Having a RRSP account can be beneficial but be warned the CRA monitors these accounts looking for mistakes that will cost you a good chunk of your retirement savings. You should try to avoid early withdrawals. You will get hit with a tax bill on previously tax sheltered income as well as lose the contribution […]
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Is an RRSP loan a good idea?
Should you borrow money via a loan offered by Canadian banks to make contributions to your Registered Retirement Savings Plan (RRSP). According to a recent MoneySense article, that depends. Currently RRSP loans are at a bank prime rate of 3.95%, which Heath says is advantageous. Further, most Canadian banks will lend up to $50,000 with […]
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It’s tax time! Do you know the difference between avoiding and evading taxes?
No matter who you are, when it comes to tax time you will try to save hold onto as much of your hard earned money as you can. You’ll want to choose your accountant wisely to ensure you hire the right one. Tax evasion, knowingly under reporting income or faking deductions is illegal. Tax avoidance can be […]
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The taxman has no place in the bedrooms of the nation, unless you claim it as a home office
The Income Tax Act allows tax deductions on expenditures employees incur for their work and are not reimbursed by the company that they work for. If you want to deduct home office expenses you need to meet the criteria required to do so. This includes a form T2200 signed by the company you work for. […]
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Avoid CRA scrutiny
Every taxpayer fears the day when they get a letter saying they are being audited. While some audits are random, the CRA has discovered that targeted audits are better at identifying non-compliance. Therefore, they tend to focus their audits on high-risk areas. Knowing this, taxpayers can reduce the risk of an audit by avoiding red […]
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How to get the biggest tax bang for your RRSP buck – BNNBloomberg.ca
Contributing to your Registered Retirement Savings Plan can pay you back with a nice tax credit, and the deadline for contributions is March 2. However, be aware that these contributions might be handled differently depending on your specific tax situation. Key is your total taxable income, which can be used in conjunction with an online RRSP […]
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Avoid the CRA With TFSAs and RRSPs: Which One Should You Invest in First?
Many Canadians can be confused by the differences between a RRSP, or Registered Retirement Savings Plan, and a TFSA, or Tax-Free Savings Account. For starters, a RRSP merely defers taxes on the funds saved in the account, while funds saved in a TFSA are not taxed. Those funds you save in a RRSP also lower […]
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