Term
| Financing Planning considerations |
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Definition
-RESP
-Sousal RRSP and perosnal RRSP
-TFSA
-pension splitting
-charitable donations
-dividends vs salary
-personal services business
-Wills |
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Term
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Definition
-RRSP (contributions are tax deductible, withdrawls are fully taxable, RRSP contribution limit for current year = amount carried forward from prior year add: lessor of 18% of PY earned income and RRSP dollar limit less pension ajustment from PY)-earned income excludes pension benefits, death benefitsm investment income, and taxable CG,
-can only make contributions while employed
-nearning retirment less risk tolerance investment in cash GIC's and bonds
-consider funds available, tolerance for risk, and expected retiring date |
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Term
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Definition
| - RESP (gov't contributes 20% of the first $2500 per year) |
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Term
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Definition
| -Spousal RRSP (used to split income to lower taxable income of higher income parner) |
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Term
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Definition
- allows contrinution of 5k per year since 2009
-contrinbutions not tax deductible
-wihdrawls and investment income are tax free |
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Term
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Definition
| can split pension income by 50% with spuse if CND resident, receive "eligible pension income" and mst be married |
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Term
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Definition
tax credit for 15% on first $200 and 29% for additional above
-limit to 75% of net income
-excess amounts can be carried forward for 5 years
-when donating securities, can elect to make donation at FMV, but specail rule puts capital gain of donated securities would be nil |
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Term
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Definition
-dividends to not generate earned income for RRSP purposes
-could be adventagious depending on federal and prov corp tax rates on personal tax rte
-salaries allow for RRSP contrinbution
-salaries paid out are deduction for corp.
-salary is 100% taxable and dividned are taxed at lower rates |
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Term
| personal service business |
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Definition
-when you set up a co to receive funds from you job
-not eligible for SDB, GRR and subject to full corporate tax rate
-dividends paid would be eligible dividneds and subject to enhanced dividend tax credit
-restricts deductible expenss to only salary and selling expenses incurred for business |
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Term
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Definition
-ensures assets are distributed upon death per desires
-ability to designate a guardian for childern and ensured they are cared for
-enable distribution of your estate in more timely manner to desired people
-name a beneficiary for your RRSP to avoid paying admin fees
-make sure to clearly identify beneficiaries |
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