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42

Essentially you have two people pretending to understand something and writing enough that it feels like it makes sense. The whole idea falls apart when you realize that equity grants are taxable. Get paid $100,000 in stock, you owe income tax on $100,000 of income even though you didn't actually receive $100,000. People do this because they think the ...


15

This is almost certainly not a scam. This is the seller trying to avoid any chance of you scamming him, with for instance a fake transfer. While I don't know details of Canadian motor vehicle laws, in the US such a cash transaction would be the normal way to handle a sale between private parties where there's no outstanding vehicle loan. FWIW, the only ...


6

The main thing to consider is how liquid you need the money to be (i.e., how fast you can turn it into a spendable form), and how much risk you can tolerate. When you want near-total liquidity (100% of the money is available within days or less, on demand), and you want minimum possible risk of loss of value, you will only be able to get a low interest ...


4

A REIT portfolio may consist of apartment complexes, health care facilities, hotels, office buildings, retail centers, pipelines or other forms of real estate, often in a specific sector. In the US, to qualify as a REIT, the company must comply with applicable IRS provisions. I assume that it's the same in Canada. An ETF trades on a stock exchange and ...


3

Say I Sell my investment property house for 500k and bought it for 250k. Leaving me 250k profit. So far so good. I'd be taxed on 50% of that correct: 250/2 = 125k taxed. and 125k Profit. No. 50% of your profit counts as taxable income. 50% of it is tax free. So $125K of the profit is taxable, but that doesn't mean you pay $125K tax. So you add $...


2

I'm assuming there are no ETF equivalents of REITs in Canada. Correct? Incorrect. A quick google for "reit etf canada" found iShares S&P/TSX Capped REIT Index ETF with the description "Exposure to Canadian Real Estate Income Trusts (REITs)"


2

There is a formula to see how much to withhold from each of your cheques. It's basically "how much tax you're likely to pay, divided by number of paycheques a year." When you fill out the TD1 you basically go through the math required. There is an online calculator you could use to work out this number also. So, imagine this calculation gives $500 a ...


2

A couple of points: (1) Yes, pension income is considered income, and does get taxed basically the same as any regular income. (2) If you earn above a given tax bracket [let's say $43,900 vs $44,000], it is only the extra income above that bracket that gets taxed at the higher rate. So someone earning $44,000 is only taxed at a higher rate on the $100 ...


2

Here is the key line from your sources: "Your contribution limit is the total of this years deduction limit and any unused contribution room you have." That is: You can contribute the total of all of your historical unused room, + the new room you created this year from additional employment income.


1

High-yield savings accounts are great options for generating returns on your cash with little to no risk. While they do offer features for transfer, I think it's best to use separate accounts for your higher-volume transfers/payments (i.e. credit cards). So, with 20k, you could put the money you don't need for expenses in the savings account and keep the ...


1

Your formula above is correct in terms of maximum return on investment for RRSPs. The "optimal" RRSP contribution really depends on your anticipated financial future and savings goals. RRSP contributions are refundable tax credits, which means you get the entire amount of income tax paid on that dollar amount refunded. This is because RRSPs are taxed when ...


1

Similar to SIPC insurance here in the US, Canada has the Canadian Investor Protection Fund whose purpose is to protect investors from the bankruptcy of an investment firm. Last I knew it was $1 million in coverage. Be aware that the CIPF protects against losses that result from insolvency of an investment firm not from losses in a fund due to investment ...


1

With awareness that this question is many years old, it bears mentioning that the other answers all essentially assume that the loans are equivalent on all terms aside from the down payment (and impact to monthly payments as a result of a different down payment). It's important to note that this may not be the case. It would be somewhat rare for a 10% ...


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