14 January 2009 FINANCIAL PLANNING www.NorthCountryBusinessNews.com
Tax breaks on the horizon may offer some relief
By Karen Wehrstein month to month payments all
While tax season can be a year.”
time of anxiety for many peo- That helps with dollar-cost
ple, there are a few changes on averaging – evening out the
the horizon that are sure to ups and downs of, for
offer a sigh of relief. instance, mutual funds – so
There’s a lot of excitement you don’t have to make an all-
in the financial planning busi- or-nothing investment deci-
ness right now about the tax- sion on a specific day, she
free savings account, a new says.
tax-break measure that If you’ve taken capital loss-
became available January es, use them to offset capital
2009. gains of previous years, sug-
This new registered account gests Catherine Duso, an
was introduced by the federal investment advisor with RBC
government and allows Dominion Securities Inc. in
investment income and capital Bracebridge.
gains to grow tax-free. Cana- “The losses can be carried
dian residents over the age of back three years and forward
18 with a Social Insurance five years,” she explains. “If
Number can open an account you paid capital gains tax in
and there are no restrictions the last three years, then you
for withdrawals. can go back and apply these
While the $5,000 maximum losses to those gains, and
contribution to this flexible recover some or all of the tax-
investment account is not es paid. You can also hang
deductible, no matter how onto these losses and apply
much interest is earned, it is them against any capital gains
entirely tax-free, a boon to that you might have in the
investors of all stages of life. next five years.”
Furthermore, most invest- That requires keeping track
ments that can currently be
TAX FREE: A teller at Huntsville’s Scotiabank hands out literature about the new savings account.
of your losses, advises Mor-
held in an RRSP will also be ley, who stresses the impor-
allowable in the tax-free sav- money, they can put it in the newsletter My Vault. Contri- keeping your nose above Agency’s website has the full tance of keeping a permanent
ings account, such as certain TFSA, and they don’t have to bution room can even be car- water.” list of eligible costs. Morley file with all pertinent informa-
savings accounts, GICs, pay any income tax on what ried forward, e.g. if you There are other changes for strongly suggests educating tion on your investments. If
stocks, bonds and other money it makes,” says Sherry deposit $2,000 in 2009, you the 2009 tax year, Morley yourself via the website. you have 30-year-old shares
investment products. Markle, a financial advisor can deposit $8,000 in 2010. notes. “It is very user friendly and but no record of what you paid
“If you have kids with with Scotiabank in Huntsville. “They’re trying to encour- “In 2008 you were able to has lots of information,” she for them, you could be taxed
grandparents who don’t know “It becomes a very says. on their entire sale value, she
what to do with their money, good investment plan- Also new this year, notes.
open one of these,” says char- ning tool,” says Richard corporations will have to As well, Morley warns, the
tered accountant Theresa Mor- Onley, a chartered “It becomes a very good investment fill out only one tax tax system has been stream-
ley, a partner in Morley Bell- accountant with Onley return instead of provin- lined, which prevents over-
Towns in Bracebridge. “It’ll & Company in Brace-
planning tool. Over 10 years,
cial and federal ones. sights.
give them a real advantage. bridge. “Over 10 years, “That’s going to save “Revenue Canada is pro-
I’m going to do this for my that’s at least $50,000.
that’s at least $50,000.”
you a lot of paperwork,” cessing GST, PST and all the
children for Christmas and For seniors, it’s exempt says Morley. corporate tax info really
birthdays from now on. That’s from the social security RRSPs still remains quickly,” she says, “and if
what they’re getting.” clawback.” very important, says they don’t get it quickly,
The account is also advan- You can split income by age people to save,” says Mor- deduct fees for sports for chil- Steve Ainger, the branch man- they’ll audit. It used to be two
tageous for seniors with regis- contributing to a spouse’s or ley, noting how difficult it is to dren; that’s now been expand- ager of ScotiaBank in or three years; now it’s less
tered retirement income funds adult child’s TFSA, and the save in today’s economic cli- ed to things like piano lessons Huntsville, even in hard times. than six months.”
with regular payments coming resulting investment income is mate. “If you have two parents and art and so forth,” she “A lot of people maybe feel Open any warning
out. not attributed to you, accord- with two kids, you don’t have explains. they can’t afford to make their envelopes right away, she
“If they don’t need that ing to ScotiaBank’s online money to save. You are barely The Canada Revenue contribution, but in many strongly recommends.
ways they can’t afford not to,” “If they don’t hear from you
he says. “Their contribution is in 15 days, they’ll take further
Donald J. Lange, LL.B., Ph.D. (Cantab.)
I
C
H
AEL
L
I
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important not just in reducing action . . . and they mean it.
Barrister and Solicitor T
L
their taxes, but they need to They will think nothing of
J
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D
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M
E
get that money earning and scooping your bank account;
Civil Litigation
compounding and growing so I’ve had that happen to sever-
they’ll have enough money to
20 years Toronto experience
al clients in the last month or
CHARTERED ACCOUNTANT
retire.” so.”
Defending or launching lawsuits
As well, he notes, if you The bottom line, say
INCOME & COMMODITY TAXES
• Opinions • Land disputes • Collections
lose your job, you can take investors, is to keep up-to-date
• Contracts • Insurance claims • Negligence
SMALL BUSINESS ACCOUNTING
money out of your RRSP with records and stay current
PERSONAL & CORPORATE PLANNING
when you need it, and it’ll be when it comes to changes that
taxed at a lower rate. will impact your taxes. It will
Phone: 705-489-4974 Office Location:
“If you can’t afford to put in be worth your time if it helps
E-mail: donaldlange@donaldlange.com Main St., Minden
97 Kimberley Ave Tel: 705-646-1100
a lump sum,” says Markle, save a few dollars and
Website: www.donaldlange.com (by appointment only)
Bracebridge, P1L 1Z8 Fax: 705-646-1196
“you can do week to week or headaches along the way.
ANDY MOORE
ACCOUNTING SERVICES
16 Years Experience
Professional wealth mangement since 1901
Personal & Corporate Tax
Catherine Duso, BBA, CFA
Planning & Advisory Investment Advisor
Bookkeeping
RBC Dominion Securities Inc.
109 Kimberley Avenue
13 Heron’s Hill
Bracebridge, Ontario P1L 1Z8
705-645-8026
Tel: (705) 645-2695
catherine.duso@rbc.com
Bracebridge Phone 705-646-8901
Fax: (705) 645-1358
www.catherineduso.com
521 Cedar Lane, Bracebridge officeworks@bellnet.ca
1 800 437-4268
amoore2@cogeco.ca fax 705-646-7636
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