Every year tax time is a good reason to complain about paying too much tax. One of the big misconceptions I hear over and over again is this notion that we pay half of our money to the government. Just recently, someone showed me an insurance proposal where the advisor used a 50% tax rate… Continue Reading
Category Archives: Tax
Marginal Tax vs Average Tax
In Canada, we operate under a marginal tax rate system which simply means the more money we make, the more tax we are privileged to pay. Marginal tax is simply the amount of tax paid on an additional dollar of income. As income rises, so does the tax rate. This is different than a flat… Continue Reading
Top tax credits for Canadians
With 2012 well behind us, it will soon be time to file our income taxes. If you don’t use a tax expert to prepare your return be aware of all the deductions you may qualify for. Other than taking advantage of RRSP deductions below is a list of some of the top tax credits for… Continue Reading
The Fiscal Cliff
Since the election ended in the United States the news channels, both here and across the boarder, have been talking about nothing except the pending Fiscal Cliff. Not as much as a peep about it prior to the election but the cliff is all that most news organizations want to prattle about today. What is… Continue Reading
Maximizing Your Income in Retirement
AGF had a very clever advertising campaigns entitled “What are you Doing after Work?” Regardless of whom you might be – Spiderman, Quasimoto, or a regular Joe in Canada – you must determine what to do after work. One of the most pressing financial issues for retirees is how to create retirement income and more… Continue Reading
Three examples where pension splitting makes sense
There are three tax planning strategies – Deduct, defer and divide. Income splitting is a way of dividing income and pension splitting is a great strategy to help couples reduce taxes. Sometimes rules can be confusing so I thought I would share a few examples of real life people who were able to take advantage… Continue Reading