Withdrawals from a Registered Education Savings Plan (RESP) are different than those from other registered plans. With an RESP, some withdrawals are taxable, while others are not. This means you need to do some tax planning when you withdraw funds. Your RESP has two pools An RESP account consists of two pools of funds. One…
Investment insight Tax-free savings accounts (TFSAs) have become popular savings vehicles. While millions of Canadians have opened a TFSA, many are still making mistakes or missing opportunities that are costing them money. Things you might not know about TFSAs but should A TFSA is a flexible, general-purpose savings vehicle that allows you to make contributions each…
When you leave an inheritance to your loved ones, you intend to give each person some welcome help in meeting their financial and life goals. No one wants an inheritance to cause discord among the beneficiaries. Unfortunately, that can happen in certain situations if plans aren’t shared with beneficiaries in advance. By communicating your plans,…
For Canadians with multiple properties and soaring house prices, selling one or more can be a blessing and a curse. On the one hand, you can benefit from strong market conditions; on the other, you have a tough tax decision to make. If you can only have one principal residence exempt from capital gains tax,…
A better understanding of how you’re taxed will make it easier to estimate how much tax you’ll pay, and reduce the chances of a surprise at tax time. If you’re self-employed, tax time can be a source of real anxiety. Varying income from your business can mean varying tax rates, and it can quickly get…
Knowing financial lingo can help you make good financial decisions. Read on to see TFSAs decoded and find out how they can help you save. TFSAs explained Created by the federal government in 2009, Tax-Free Savings Accounts (TFSAs) can contain investments such as cash, GICs, mutual funds, segregated funds, stocks and bonds. You don’t get…
When you think of income splitting, what first comes to mind is likely moving taxable income to a lower-income spouse. But several income splitting opportunities with children are available and worth exploring. The more income you can transfer to others in a lower tax bracket, the more tax you save as a family. Tax savings…
You can’t escape paying tax on income, but you may be able to split some of your income with your spouse. And if your spouse is in a lower tax bracket, you’ll pay less tax as a couple. Here are three scenarios that illustrate some of the tax-saving strategies available through income splitting. Kim and…