Hello all,
I am a fixed-salary professional with a taxable income of $100K/annum.
I have been maxing out my RRSP every year.
I have no other tax deductions.
Essentially, I am getting screwed on income taxes.
Each year I am paying approx. $18,000 as income tax.
I need to find tax deductions that can improve my situation significantly.
There are only two scenarios that I can personally think of that can save large amounts of taxes -
(1) take a very large line of credit (secured or not) and use it for investment and write off the interest.
This will provide tax savings but for it to be of any significance, I'll have to invest more than 75K.
(2) incorporate a home business and write off mortgage and other expenses.
I am not comfortable with the risk inherent in option (1) and I don't really know of any viable business that I (or my spouse) can run out of our home to get the benefit of option (2).
My questions -
1. Are there any other options that I can use to reduce my taxes?
2. Assuming my income increases in the future and at some point, my spouse enters the workforce, are we royally screwed for the remaining duration of our working lives (at least 30 more years)?
Any help/advice appreciated.
I agree with U. Both the options are not too good & viable. Other option for U is to purchase Flow Thru Shares Limited Partnership. It is being offered by all good Mutual funds, . U can also purchase Flow Thru shares directly but they are too risky. It is better to go for Flow Thru Limited Partnership where they invest in lot of companies. Investment in Flow Thru Shares is 100 % Tax Deductible & when it is rolled over, U pay only 50% Capital Gain. For a person like U, this is only legal & time tested Tax Shelter.
If U can invest in super flow thru share, you get 133% Tax Deduction.
Hope this helps.
-----------------------------------------------------------------
Driller the thriller
Quote:Are these those types of investments where the money is invested in low-return, high-gestation period, usually loss making companies that are backed by provincial or federal Govt?
Originally posted by desi_driller
I agree with U. Both the options are not too good & viable. Other option for U is to purchase Flow Thru Shares Limited Partnership. It is being offered by all good Mutual funds, If U can invest in super flow thru share, you get 133% Tax Deduction.
Hope this helps.
flow through is something else altogether.
Lock in periods are usually 2-3 years.
Totally unlike LSIFs.
Companies moolah is invested into are usually energy and mining- high risk.
Not all LSIFs are high risk.
In a nutshell.
Not at all. Flow Thru shares are shares of Companies of Mining sector ( Including Exploration of Oil & Gas). Lock in period is 2-3 years but trend nowdays are they are being rolled over in as little as 4 -6 months.In todays market where comodities prices are strong, U can expect a safe return of 10-12% easily.
-----------------------------------------------------------------
Driller the thriller
Hi There
you didnt ask for opinions on your tax situation but when I read your question my thought was that $18,000 per year income tax (I assume you mean both federal and provincial combined) is still very low for a $100,000 salary.
You are not being 'screwed' but are really doing very well!
-----------------------------------------------------------------
~ Morning rain
Quote:
Originally posted by morning_rain
Hi There
you didnt ask for opinions on your tax situation but when I read your question my thought was that $18,000 per year income tax (I assume you mean both federal and provincial combined) is still very low for a $100,000 salary.
You are not being 'screwed' but are really doing very well!
Advertise Contact Us Privacy Policy and Terms of Usage FAQ Canadian Desi © 2001 Marg eSolutions Site designed, developed and maintained by Marg eSolutions Inc. |