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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

Given his TFSA is entirely maxed out, it is not necessarily true that he shouldn't contribute to his RRSP; the benefits will just be smaller than they would be under different circumstances. The benefit of an RRSP contribution today, is an immediate deduction from his income on this year's tax return. The penalty of an RRSP withdrawal in the future, is 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 ...


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.


2

No, it is not the nefarious government preventing Registered Account traders from making money. They get their taxes eventually. A registered account has legal limits to the amount in a year a person can contribute to their account. How much money they earn within the account has no limit. If you trade naked options, there exists a condition (a bad trade) ...


2

Why not a 4th, but arguably better option? Normally with big money decisions there is always another option! Why not Cash flow the 15k? Why you wouldn't go for: Option 1 - Never reduce your emergency savings unless for true emergency. Known, upcoming college expenses is not an emergency. Also, an emergency fund isn't used as an invest, and should be kept ...


1

Scenario 1: Lump Sum from Loan Borrow $5,000 (with a $100 fee) and contribute $5,000 in one lump sum to your RRSP. Repay the loan at $637.50 over the next eight months (assuming the fee is added to the loan amount and not paid up-front). Total contribution to RRSP: $5,000. Total cost to you: $5,100. Scenario 2: Monthly Contributions Over the course of ...


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 ...


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