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63

Congratulations on an amazing rise on salary. Please pat yourself on the back for such an accomplishment. The best thing you can do is to hire a competent tax specialist. Here in the US, it is typically an accountant and they would tell you that there is not much they can do. Maximizing tax favored retirement accounts is about the best one can get away ...


7

Minimizing taxes at your scale is more an exercise in determining which activities the government decides to tax less rather than an exercise in finding clever loopholes to exploit. You lack the resources (and the tax burden) to make use of the more intensive tax avoidance strategies in a feasible or efficient manner. Sorry, but no tax havens, no accountants,...


4

If you own any works of art or ecologically sensitive lands you can donate those to a city government/museum/conservation trust/accredited charity and receive a tax refund for the appraised value of the donation. This would only net you a tax benefit if the appraised value was greater than what you spent, but it would deprive the government of money if that'...


3

The plan works regardless of your bracket - it is one of the most tax-effective things you can do if you are planning on buying your first home, and are looking to maximize your down payment. Effectively you take a deduction from your income tax this year, and only need to contribute to your RRSP over the next 10 years [Well, really you contribute today, ...


2

Disclaimer: I'm from the US so I might get parts of this wrong. One way you might be able to reduce your taxes is to invest in real estate. In the vast majority of countries real estate is taxed very well. It appears you can deduct theoretical real estate losses against salary in Canada. There are legal ways to make it look like you're making a loss to the ...


1

I have factored some property appreciation into your figures. After 25 years plan A and B have comparable cost: $229.8k vs $309.5k. If you are happy renting and saving for 5 years you might avoid some house repair costs with plan B. On the other hand it might be more comfortable in a $300k house. 2% property appreciation might be optimistic though. Plan ...


1

The bottom line is you don't know and cannot predict the future. On a micro level your chosen neighborhood could under go gentrification and it would be really wise to purchase a home right now. Eight years ago in Nashville, and 15 years ago in Austin were great times to buy. Or it could end up like Detroit. On a macro level, interest rates could soar ...


1

I would suggest reading these articles: A) Why your home is a terrible investment B) Rent v. Owning Your Home, opportunity cost and running some numbers To summarize though your models should also include: 1) The ongoing costs associated with home ownership/property taxes/upkeep. 2) Heat/utilities if they differ between your rental and the house you are ...


1

Are you just looking for ways to reduce your income tax without spending money? If so you could: Max out your RRSP contribution every year. Donate a gift of certified cultural property (like artwork) to a designated institution or a public authority (like a museum). Transfer any high earning investments to your TFSA. Donate ecologically sensitive land to a ...


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