Hot answers tagged

170

As a frame challenge to your question, consider that a deposit in your bank is essentially you giving a loan to the bank. Now the bank has money which they can loan to your friend! Yes, you're only making 2% by loaning money to the bank, but this way, the fact that you're only earning 2% is essentially you allowing the bank to keep a portion of the interest ...


74

Risk. The bank will probably get more over time, as long as the borrower continues to make payments. If they don't, the bank may lose money (especially if they end up having to foreclose and can't sell the house for enough to cover the loan balance). If you act as the lender, you take on this risk. You could just take the $500,000 up front from the sale and ...


71

Also I am 16 Before chat with a sugar daddy, for God's sake learn what is expected of a sugar baby. (Accessing your bank account is not what's expected...) will I get in trouble for accepting money from someone over age? Tell the truth, the whole truth, and nothing but the truth; plead youth, naivete and desperation. They'll fuss at you a bit, but won'...


62

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 ...


54

Don't bother. It's a stunt, and a wasteful one. The whole point of it is emotional: wanting to believe this is your money, blah blah. But money is fungible: there's no difference of this, vs your RRSP loaning to somebody else's mortgage while you borrow from a bank. The RRSP money is tax sheltered, "restricted" money. It's not your money (yet); it's ...


46

Everyone here is claiming that your actions didn't hurt the manager-- but under Canadian law, they absolutely can. Managers are allowed to keep the tips and gratuities they receive themselves, and generally may participate in tip pooling arrangements if their employers’ policy permits them to do so. Employers are allowed to keep the tips and other ...


45

To secure the loan, would it be possible to take the car as a collateral? Yes it is possible. But to do this you have to create a lien, which is a legal document, and you would need a lawyer to do it. With the lien: A) yes you stop him selling the car B) Yes this will be registered C) Yes you can take the car back. Without the lien the answer to all of ...


44

I am neither Canadian, a lawyer nor a tax-adviser. This is neither tax- nor legal-advice. TL;DR: As far as Income Tax is concerned, it is very likely that there will be nothing to pay. You will, however, almost certainly have to pay Provincial Sales Tax (PST) (at probably 12% of the "fair market value" of the vehicle). In addition, should the ...


41

I would suggest you immediately take this matter to the police. Will I get in trouble for accepting money from someone over age? Almost certainly not. The concept of "under age" exists for a reason, society has lower expectations while you're still young. The other guy, however, is potentially in some deep shit. For an adult to seek out a sugar daddy/...


39

There are a lot of answers here gatekeeping the employers responsibilities to the staff, and passing them on to the customer. It is not a consumers business or responsibility to pay staff wages. It's a pernicious tradition in North America that people who work hospitality jobs are entitled to a pay bump fronted by the customers of whatever entity pays their ...


38

First to answer your question: Because it is the law. Period. No discussion allowed there - yes, some laws make no sense, but still, that is the reason. DO not like it? Vote for someone who will change it. The reason is that the money there is pre-tax and you are not allowed to USE it for yourself before retirement. Having a mortgage which pays market rate ...


33

I used to do this when I was younger. The process went like this: look through the flyers from the stores near me. Note things that are significantly cheaper this week (eg chicken is on sale) add those items to the shopping list and note the store name add store names to items already on my list that are advertised on sale then go to the first store. Buy ...


33

This is known as a "vendor take back" mortgage. It's common with empty land and with vacation properties, which Canadian banks often prefer not to offer mortgages for, or to charge quite a bit more. It's also likely in those cases that the property is subject to capital gains (not being a primary residence) so taking the money a bit at a time can lower the ...


33

Is there any shady reason why the seller would use this strategy? The seller has a reason for staying for many months and they want to get out of ownership now. If I was presented with a counter-offer like this, I would worry that the seller has inside knowledge of something. They know that the city is going to seize the property for a big project, or they ...


29

This is a supplement, not an alternative, to TripeHound's excellent answer. In BC you are required to pay tax (PST) on private vehicle sales. Moreover you are usually required to pay tax on the market value of the vehicle, even if you say you bought it for less (because it's far too easy for buyer and seller to report a price lower than they actually paid ...


24

Frame Challenge There's an "opportunity cost" (spending time doing one thing means that you miss out on the opportunity to do other things, which might be more fruitful) in running around hither and yon looking for the cheapest of everything. Thus, I would comparison shop to find which grocery store has the overall lowest cost.


23

Buy for your friend a cheap and reasonably reliable used car. You can get such car for less than you would spend on lawyers to write a contract for the loan in your inquiry (so you and your friend are already ahead financially - because otherwise this cost would have to be added to the loan your friend would have to finance, and you risk to lose). If he ...


22

Disclaimer: I live in Europe where we pay people at least minimum wage regardless of whether they get tipped or not. Tipping is not in our culture and leaving pennies or even nothing on the table as a tip is fine in most circumstances. Tipping is not mandatory anywhere, it is only customary and I know that in North America that custom feels like an ...


21

Ask your tenant what he wants to get out of this arrangement - NOT the legalese - but: What end result the tenant wants in plain English (it sounds like free money). Why does the tenant think he should/must get it? - Note: answering my mum said it was due is not your problem. Then decide what you should do. Things not to do: Engage with his mother - you ...


19

What you did is perfectly fine. This way the staff, at all levels, will be motivated to raise this issue with their managers, which might lead to a change of this stupid policy.


18

You are asking two opposite things. You might as well ask to purchase a store's finest, cheapest cigars. Or to put it another way, the bluest-reddest car you can get, is purple. But is that what you want? The question is, which do you care about? Low risk, or high reward? Be warned that anyone telling you you'll get both, is deceiving you. First make sure ...


16

he asked for my bank account info which I stupidly gave him Did you give him the information to deposit money i.e. account number and sort code? Or did you give him the information to physically log in to your online banking? Sugar daddy stuff aside, you should never give anyone the latter, especially not a stranger. Even if you had no money in it, your ...


16

Canadian tax law is much simpler than the US. Canada does not have a "gift tax" either for the giver or the receiver, except for some very special cases. US gift tax is paid by the giver, not the receiver, so would not be payable by a Canadian on a gift given in Canada.


16

What does he mean exactly? How the heck does it make sense for a landlord to "buy" a "lease" from his own tenant? It sounds like they're hoping you might pay them to vacate/end their lease. It could make sense if you were considering selling the property. It could also make sense if they were about to stop paying rent because they think they cannot be ...


14

In the US the giver of gifts has the gift-tax obligation if any exists, not the recipient. Even if letting them stay at the house was considered to be a gift it wouldn't be relevant to the IRS if the giver is Canadian. I'm not familiar with gift-taxation in Canada.


12

You said, Whenever I see things like this, they are always tied to moving money from your checking to your savings account. The reason why that's the mechanism they're suggesting is because most people treat their checking account as their primary transaction account - they leave their paycheck there, and spend out of it for daily purchases, bills, and ...


11

“Remote” job position plus “bitcoin” = scam. I’m sorry - your best bet at this point is to block them, delete any messages and move on. If you have already given them any of your personal information then you may need to watch your credit report, and definitely change any passwords if you have given those out.


10

This is not risky, or dishonest. It is known as a contingency. Your relative is free to back out of this deal if it does not work for him. Although not common, basically your relation is buying a home and becoming a landlord for a period of time. A similar situation would occur if they were buying a home that was rented to a tenant with a lease in place. ...


9

I'm going to relate it to a bit of computer programming: Premature Optimization is the root of all evil. In other words, don't spend your time struggling to optimize some aspect of a situation without actually checking whether the aspect is even a major performance issue. In this case? Before going too far down this road, I'd actually suggest tracking ...


9

What does this indicate about rate prediction over the next few years? It indicates that the market believes that the near-term interest rate will drop below 2.89% (to bring the average down from 3.49% to 2.89%) over the next 5 years.


Only top voted, non community-wiki answers of a minimum length are eligible