Can a joint-tenant qualify as a first-time homebuyer? Q: I'm a joint tenant in my current home, and I'm ready to buy my own place. Can I use the Home Buyers' Plan (HBP) or the Tax-Free First Home Savings Account (FHSA) as a first-time homebuyer? A: To take advantage of the HBP and/or FHSA, [...]
Contributing to an RRSP is always a great move, right? Not so fast. RRSPs reduce your taxes by sheltering income from tax when you contribute. You will pay the income tax later when you withdraw the funds, which is ideally when they’ve had a few years to grow (tax-free), and when you’re in a lower [...]
So it’s RRSP season again, and you’re trying to decide how much (if anything) to contribute this year. This is especially a question if you didn’t end up earning much. Here are the top three things you need to know about RRSPs in a low-income year. 1. RRSPs are less helpful to people with low [...]
Q: After a few years of low income, I'm finally ready to start contributing to my RRSP again. But looking at my Notice of Assessment I completely forget what the RRSP numbers mean. My notice from last year's taxes gives me the following: RRSP deduction limit: $15,000 Unused contributions previously reported & available to deduct: [...]
Should I Contribute To My RRSP or my TFSA? The differences, pros and cons of these popular registered accounts The Registered Retirement Savings Plan (RRSP) and it’s younger sibling the Tax-Free Savings Account (TFSA) are two of the most popular tax options for the average Canadian. Before deciding which, if either, to contribute to, here’s [...]
Contributing to your RRSP is a great thing, but an RRSP loan isn't always the best way to do it. Around this time of year you’ll start seeing banks promoting the idea of RRSP loans, where you borrow money to make an RRSP contribution. If you have no cash available, and if an RRSP contribution [...]
Definition of a Spousal RRSP Contribution: A situation in which a person makes a contribution to his or her spouse’s RRSP. The contributor uses his/her contribution room, and reports the contribution on his/her tax return, thus saving income tax at his/her rate. What is the advantage of a Spousal RRSP Contribution? A couple can maximize [...]
Considering how often they're used, there is a lot of confusion over what a Home Buyers Plan withdrawal really does and how it works. Personal Tax Advisors: Next Level Tax Preparation Next Level Tax Preparation means experienced preparer who can do what software and seasonal workers can't. You can get 'good enough' tax preparation from [...]
If you're planning to go back to school in September you can use the money you've saved for tuition for a quick tax bonus – but only if you act soon. Personal Tax Advisors: Next Level Tax Preparation Next Level Tax Preparation means support for our clients when CRA comes calling. At Personal Tax [...]
©iStockphoto.com/eyetoeyePIX When you have a great year, sheltering an income spike with an RRSP contribution can save you excess tax. Jargon Alert! Marginal Tax Rates The feast-or-famine world of self-employment and freelancing can be terrifying or exhilarating. Unfortunately it can also be expensive when it comes to taxes. A person who earns [...]
