Contact your Auto Insurance company and ask them if there is anything that can be done to save a little on your annual Auto Insurance policy or monthly policy. If you are not using your vehicle for work because of COVID-19 and social distancing, then you may contact your auto insurance company and advise them that your vehicle is now pleasure use stepping out for emergency only, groceries and basic essentials when needed.
Your auto insurance company can downgrade your policy providing you with a small savings.
In addition, some insurance companies are now offering a 10% discount to policy holders. Contact your insurance company and ask for more information to see how you can save.
Enercare – If you have enercare insurance (ie plumbing, air conditioning, heat, water tank rental, duct cleaning) you can call enercare, advise them of some hardships and ask to see if there is anything they can do to help save some money. They may provide you with two months credit on each of your products. This is a little help.
As for your water rental is handled by another company which enercare can connect you to and they may be able to apply 3 months credit.
I was told that if you differ the mortgage 6 months and find yourself with the extra money at the end of six months you may opt to pay the interest at that time. Before they tack the interest onto your mortgage you will be receiving a letter from the bank telling you how much interest has been accumulated over the period of 6 months. At this time you can opt to pay the interest accrued therefore the interest will not be added your mortgage, having to pay interest on top of interest amortizing it over the period of 25 years etc.I called the bank and asked this of CIBC. Is this incorrect? Can someone clarify this? CALL YOU BANK AND ASK TO CONFIRM https://www.canadianmortgagetrends.com/2020/04/latest-in-mortgage-news-six-month-deferrals-could-cost-you-up-to-12000/
Expecting an income tax refund? Before rushing out to spend it, consider how you can put it to work to enhance your financial future.
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You just pushed the send button on your income tax return and you can’t wait for your refund to go into your account. You might be thinking about what you’ll use it for. An exotic vacation? A down payment on a new car? Here’s another thought: You can use that money to brighten your family’s financial picture over the long term.
Here are five ways you can do that:
1. Start an emergency fund.
You can use your income tax refund to start an emergency fund, or add to your current emergency savings. Aim to have enough money to cover about three to six months of necessary living expenses. Keep that money in an easily accessible, high-interest emergency savings account or a tax-free savings account (if you have contribution room). That way, you will be better able to weather a financial crisis, like the loss of a job, a car breakdown or unexpected, unpaid time off work.
For the 2019 tax year, the registered retirement savings plan (RRSP) contribution limit is 18% of earned income from the previous year, up to $26,500. That number will be adjusted if you put money in a company-sponsored pension plan. Yet studies steadily show that less than half of Canadians put money in their RRSPs every year. If you haven’t been contributing the maximum to your RRSP, you can use your income tax refund to help build a larger retirement fund. The interest on your money will also compound over a longer period than if you only put money in at the end of each year.
According to CreditCards.com, the average adult Canadian carries about three credit cards. The Canadian Bankers Association reports that about 60% of Canadians pay off their accounts in full each month. That means 40% of us are paying interest rates of 15% to 20% on our outstanding balances. Paying down or paying off your credit card debt will free up money that you can use to boost your retirement savings.
Given that the average Canadian home sold for $609,700 in February 2018, according to the Canadian Real Estate Association – and the sale price of an average detached home in Toronto topped $1.2 million the following, per the Toronto Real Estate Board – there’s a good chance you took on a large mortgage to purchase your family home. Mortgage interest rates have started to inch up, and your payments may no longer be affordable the next time your mortgage renews. So, depending on your situation, it may make sense to take advantage of early pre-payment privileges to reduce your mortgage debt as quickly as possible. Once your mortgage is paid down or paid off, you can catch up on your RRSP.
For the 2018-2019 school year, the average undergraduate tuition fee was $6,571, according to Statistics Canada. And that’s only one year out of a four-year program, and doesn’t count books and living costs. Those expenses can add tens of thousands of dollars to the bill – and by the time your young children are of university age, the total will likely be a lot higher. If you’re not saving for your child in a registered educational savings plan (RESP) you’re leaving free money on the table.
That’s because when you contribute to an RESP for your child, the Canada Education Savings Grant adds 20 cents to every dollar you contribute, up to a maximum of $500 on an annual contribution of $2,500 until your child is 17. Special rules apply, so it’s important that you speak to your financial advisor in order to maximize the grant. Using your tax refund to make annual RESP contributions is a great way to invest in your child’s future.
“Despite what you may have heard, your cell phone payment history does affect your credit score.
Cell phone accounts work differently than a credit card or a line of credit. A cell phone is an open or “O” account, which means the balance has to be paid in full at the end of each month.
There is no such thing as a minimum payment with an “O” account like there is with credit cards and lines of credit. You can’t just pay a portion of your bill. The amount that you see on your statement has to be paid in full otherwise your credit score will suffer.
Unfortunately, many Canadians don’t view paying their cell phone bill in full or on time as being as important as other payments. Lenders disagree. The bank underwriters (the people who review your application) are thinking, “If you can’t make or keep track of a cell phone payment, what are the chances that you are going to be responsible with your mortgage payment?”
Costly Missed Payments
Let’s take a look at one borrower, John, who was declined for best-rate mortgage financing on the purchase of a new house because he had three late payments on his cell phone bill during the last two years. His argument wasn’t unique.
Is this you?
“I called (the phone company) before the payment was due and asked if I could pay half of the bill this month and the remainder of the outstanding balance the following month,” he said. “The customer service rep told me that it was okay to take a couple of months to get caught up.”
Susan and Frank found themselves in a similar situation. They were approved for mortgage financing but were then declined at the last minute due to a recent late payment showing up on their report in the same week they were supposed to be moving.
Arranging a mortgage and preparing for a move is stressful enough without having a financing issue in the eleventh hour. In the end they were able to find a resolution, but it resulted in a delayed closing. They had to get approved by a different lender at a higher rate. In addition to all the stress and time, this small mistake ended up costing them $3,459.28.
Despite what they tell you, late payments will continue to be recorded until your account is caught up. Underwriters will look at an applicant with an outstanding balance as someone who is not in control of their finances. It will drop your score and hurt your chances of being approved for best rates and terms.
A Matter of Principle
It’s common for consumers to not make a payment because they were unfairly charged or they found a mistake on their bill. On principle, I understand that you might not want to make the payment, however, even if you are disputing the charge, it will not stop the negative item from showing up on your credit report.
And keep in mind that one late payment can be enough to negatively impact your best rates and terms for future financing. Your cell phone company will start the collection process if an overdue balance is not paid within 60 to 90 days.
As you can guess, a collection appearing on your report does not help your credit score. Many of my clients echo my caution, and in hindsight wished they had simply paid the bill in the first place. If you find yourself in this situation, my suggestion is to clear the amount owing first, and then dispute the charges. That way it doesn’t lower your score or cause you to get charged higher rates just because of one account.
Warning…Warning
Beware!
If you have paid out or closed your cell phone account, make sure you get something in writing to confirm that there is no outstanding balance owing.
The same goes for an outstanding amount or settled collection. Don’t take anyone’s word for it or assume that it will be updated on your credit report. Are you starting to see a trend? Whatever you do, get confirmation in writing! If you don’t, it will make trying to correct the error even more difficult.
The only way to avoid having your cell phone report on both Equifax and TransUnion is to go with a pay-as-you-go contract. If you are on any other type of plan, keep your fingers crossed. You don’t want to be one of the unlucky ones to have a cell phone error or problem tarnishing your credit. To improve your chances of avoiding any issues, ensure you pay the full amount owing each month and keep good records.”
theRipregistryHow Your Cell Phone Can Keep You From Getting the Lowest Mortgage Rate.
I was having lunch with a good friend of mine and she mentioned there were some stocks that a 91 year old lady wanted to sell and then split it amongst her 4 children.
Well of course you can sell your share, but then she is stuck with paying Capital Gains, because she will need to claim the income (growth/profits of the stock). So this is how this works:
As of 2018, the capital gains inclusion rate is 50%For example, with a capital gains inclusion rate is 50%, if you bought shares for $10,000 and sold them for $15,000, you have to declare a $5,000 capital gain in the year you sold the shares
Can you gift stocks and property to family members in Canada and avoid capital gains all together. Not in Canada
Are Gifts or Inheritances Taxable?
There is no “gift tax” in Canada. Any resident of Canada who receives a gift or inheritance of any amount from almost any source (except from an employer) will not have to include this in their income. However, if capital property (e.g. real estate, investments) is given as a gift, the person who has given the gift will be deemed to have sold the capital property at fair market value (FMV), and will have to pay tax on any resulting capital gain. The FMV is deemed to be the “cost” to the person to whom the shares were given. If money or capital property is given or loaned to a spouse or a related minor child, attribution rules will apply.
As pointed out by the Video Tax News team in the April 2019 Life In The Tax Lane video, there could be a problem if capital property is sold to a non-arms-length person for less than FMV. Subsection 69(1) of the Income Tax Act deems the proceeds to be at FMV when a taxpayer has disposed of a property non-arm’s-length for no proceeds or for proceeds less than FMV. However, it only deems the acquisition cost to be at FMV if the property has been acquired at a cost higher than FMV, or by way of gift, bequest or inheritance. It does not deem the cost to be at FMV where the cost is less than FMV. This may result in the selling taxpayer to have deemed proceeds of FMV while the acquiring taxpayer must use the actual transaction amount as their cost.
theRipregistryCan you reduce or avoid Capital Gains Tax on Stock
One of the best ways to save for retirement and cut your tax bill is
with a registered retirement savings plan (RRSP).
Every dollar you put into an RRSP can be subtracted from your taxable income. This means you’re paying yourself first. And you may get a tax refund this spring when you file your taxes. If you’re looking for ways to grow your savings, check out these 5 RRSP tips.
Invest all year round
It’s easier to save smaller amounts over the entire
year. You won’t need to rush to make a large RRSP contribution at the end of
February. A few dollars now will go a long way later, once growth and time are
factored in.
Reduce your combined tax by income splitting
Splitting income between you and your spouse may help you lower your taxes. When you put money into a spousal RRSP, the money will belong to your spouse. How much you can put in will depend on your contribution room but you get the tax deduction. This may be useful if you earn a lot more than your spouse does. Consider contributing to a spousal RRSP. You may get a bigger tax break than your spouse would by contributing to their own RRSP.
You may also get a tax break later when you and your spouse take money out in retirement. Thanks to the extra money you’ve put into your spousal RRSP, your spouse may take out more income. This may be useful if you earn a lot more than your spouse during retirement. When your spouse takes out a bigger share that means you can take out less from your RRSP. Which means you may pay less income taxes.
There may be exceptions depending on your plan. So it’s always a good idea to double check.
Watch out for over-contributing This can cost you
You may need to pay a penalty if you over-contribute to your RRSP. The government charges a 1% penalty tax, assessed monthly, for each month you’re over your limit.
Save your “extra” cash
Got a bonus, inheritance or cash gift? You can use it to give your RRSP a boost. Some employers may offer to move your bonus into your RRSP. This can be a great perk to take advantage of.
Grow your RRSP until age 71
You have until the end of the year you turn 71 to maximize your RRSP contributions. After this point, you’ll need to turn the money in your RRSP into retirement income. When you start to withdraw your money, your income will likely be lower. So you may pay tax at a lower rate. SEE WRITE UP AT theripregistry.ca/blog https://theripregistry.ca/blog/ age Limit for contributing.
Bonus TIP: Your 2019 RRSP contribution room is available on your 2018 Notice of Assessment. You can also find it in your Canada Revenue Agency (CRA) online account
The year you turn 71 is the last year in which you can make a contribution to your RRSP.
You can contribute to an RRSP under which your spouse or common-law partner is the annuitant until the end of the year your spouse or common-law partner turns 71.
For ie: If you don’t have an income and your spouse has a contribution limit of $70,000. When filing as common law or married, you can lower his or her income by contributing to RRSP up to the age of 71 even after he/she has retired. If the spouse is younger for ie. and there is more room and haven’t used up $70,000 then you can continue to contribute, lowering your taxes year after year by doing a spousal RRSP up and until the spouse or common law partner turns 71.
Therefore if your pension and income after retirement is still high and you want to lower your tax bracket, there is an option, so take advantage of it. Check out this link.
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