UNDERSTANDING TAX PLANNING
For many, income taxes represent our largest single expenditure, so income tax planning can play an important role in helping achieve financial goals. The 3Ds refer to the principle strategies to divide, defer and deduct.
Are there tax considerations that you are overlooking, that could help you achieve your financial goals? I take a broad view of tax planning using a strategic approach as follows.
- Take advantage of the available deductions and credits allowed under the Income Tax Act (ITA).
- Take advantage of tax deferral.
- Take advantage of the ITA’s progressive tax system.
- Take advantage of tax-advantaged investments.
These strategies are then integrated into the cash flow, risk management, investment, retirement income or estate plan(s) to achieve the 3Ds in the most effective manner.
Tax Freedom Day – June 10, 2015 Today is Tax Freedom Day. Every year the Fraser Institute calculates the total tax burden imposed on the average Canadian family by Canada’s three levels of government. If families were required to pay their total tax bill in advance, they would give every dollar they earn to government …
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How Long Should Snowbirds REALLY Stay Out of Canada? Snowbirds and Travellers to the US A lot of retirees travel south each winter to escape the cold. They are probably well aware how their medical coverage through OHIP works (up to 212 days which is effectively 7 months) and hopefully purchase adequate “travel insurance“, so they don’t find themselves in a financial mess …
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The Value of Financial Planning Study I am a member of the Financial Planning Standards Council (FPSC®). It develops, promotes and enforces professional standards in financial planning through the Certified Financial Planner®/CFP® certification, and raises Canadians’ awareness of the importance of financial planning. FPSC’s vision is to see Canadians improve their lives by engaging in financial planning. A study …
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Do You Want Unbiased Advice? [ezcol_1half] Click here to learn how to get an unbiased assessment by a certified financial planner, CFP [/ezcol_1half] [ezcol_1half_end] [/ezcol_1half_end] 681 total views, 0 views today
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TFSA versus RRSP The Tax Free Savings Account, TFSA, was introduced in 2009. The current contribution limit for both 2009 and 2010 is $5,000. If you don’t use it, you don’t lose it i.e. the limits are cumulative. Therefore, if you are age 18 or over in 2009, you now have $10,000 of TFSA room. …
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