A spousal investment loan is essentially the same as a regular investment loan, except it is one spouse lending money to the other, instead of the bank doing the lending. Providing the loan is put towards a taxable investment account, the interest is tax-deductible by the lower-income spouse...
While CPP/QPP retirement benefits are taxable, they are sheltered from inflation and guaranteed for the rest of your life. You can receive CPP/QPP benefits as early as age 60, or as late as age 70. What you can expect to receive from CPP/QPP is a bit complex, and the quick answer ...
In order to keep your taxable income consistent throughout the lifetime of your non-registered annuity, make sure that you look at “prescribed annuities”. Non-prescribed annuities will pay you more taxable income on the front end of payments, which might lead to a higher tax bill. 2)If ...
By contributing to your RRSP, the government “recalculates” your taxable income. In this case, it treats it like you only made $44,152.10 (5). And because you made less income, you pay less tax (6). Therefore, because there is a difference in how much tax you already paid (2) a...
RRSP, when not investing your tax returns, grew at the same rate as TFSAs, and well, that is to be expected, as you are putting in the same amount of money. Where these two types of nest eggs begin to differ is when you start withdrawing funds. Since RRSPs are taxable and assuming...
What is a taxable benefit? What is control precision? (a) What is the spot price? (b) What is the settlement date? What is vertical analysis? What gives rise to accounting distortions? Explain. Explain the meaning of the term blocking as used in steel construction. What do you mean by...
RRSP withdrawals are subject to withholding taxes and are considered taxable income. For some people, money in a TFSA might be too easy to access. The future is uncertain The younger you are, the harder it is to determine which account to put your retirement money. When in doubt – ...
You’ll still have to pay income tax on this money when you eventually withdraw it, but the idea is that you’ll be in a lower tax bracket then.. because you will have quit your job and your only taxable income will be your 401(k) withdrawals. If you try to withdraw the money ear...