Most people don’t think about their taxes until March or April, when they have to complete and file their returns. By then, unfortunately, its too late to take advantage of many planning opportunities – the year for which you are filing has already passed. NOW is a good time to review your tax situation.
If your turning 69 this year, you must decide how to deal with your Registered Retirement Savings Plans (RRSP’S). Your RRSP’s must be terminated in the year you reach 69; rather than have all the money taxable as income, you should consider moving the funds into a Registered Retirement Income Fund (RRIF), an Annuity or a combination of the two.
You won’t be able to contribute to your own RRSP after age 69, but if you have a younger spouse you are still able to make contributions to a Spousal RRSP – meaning you’ll still benefit from the tax deduction.
Do you provide assistance or support for an elderly parent? If so, you may be eligible for personal income tax credits.
If your concerned about your ability to care for your parents in the future or worried about your own situation, there is a new insurance product on the market that may be of interest. Called “Long-term care insurance”, it can help pay the significant costs associated with eldercare.
The Minister of Finance and the CCRA are cracking down on those trying to avoid paying taxes by moving funds to so-called off shore accounts. If you held property outside Canada with a total cost of more than $100,000 at any time in the 2006 tax year, you must file a T1135 Foreign Income Verification Statement. If you are looking for a tax advantaged investment, look into the tax advantages of leveraged life insurance. Leveraged life insurance is aimed at producing a pool of money that can be tapped tax free.
For more information please call Paula Kendrick, Portfolio Strategies Corp.
Businesses in the Shawnessy area can post information about their business here
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