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Can you reduce or avoid Capital Gains Tax on Stock

November 24, 2019 theRipregistry Financial, Planning, theRIPregistry No comments

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.

It’s that time… FFT

November 22, 2019 theRipregistry Financial, Insurance, Planning, theRIPregistry No comments

5 RRSP TIPS

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

Student Forgiveness Loans!

September 10, 2019 theRipregistry Financial, Planning, theRIPregistry, Uncategorized No comments

I FOUND THIS SITE AND THOUGHT IT MIGHT BE OF INTEREST TO MANY OF US… FIND OUT HOW TO GET STUDENT LOAN FORGIVENESS. A MUST READ!

YOUR GUIDE TO CANADA STUDENT LOAN FORGIVENESS
See below for credits

Student loan debt is a big problem in Canada, and it’s not going away any time soon. The average new graduate is carrying $28,000 in student loan debt. Pair that with high housing costs and low wages, and it’s no surprise that most millennials are putting off major life milestones because they simply can’t afford it.

There is a small glimmer of hope for those struggling with provincial and federal student loans, and it comes in the form of student loan forgiveness. I took advantage of New Brunswick student loan forgiveness when I wiped out $16,000 of my $42,000 in student loan debt. Without that loan forgiveness program and others like it, there’s no way I could have paid off $38,000 in two years.

If you’re one of the many young Canadians dealing with high student loan debt, I’ve put together a list of possible resources for you to tap to reduce your debt burden. Before you jump to your province and start going click happy, there are a few things you should know:

First, most of these programs are only for publicly funded student loans. If you have loans through a private lender, skip to the bottom of this blog post for additional resources.

Second, every province has a repayment assistance program (RAP). A RAP is there if you can’t make your minimum student loan payments. It’s not student loan forgiveness, it’s just there to help you if you are having trouble earning enough money to make your minimum payments. I’ve listed a few of them below.

Finally, some of these programs are applied to your loan automatically and some aren’t. Read the fine print on every website and mark the due dates on your calendar so you don’t miss out on your chance to reduce your student loans just because you didn’t get your application in quickly enough.

Enjoy!

FEDERAL CANADA STUDENT LOAN FORGIVENESS

Canada Repayment Assistance Plan (RAP)

The Canada RAP program is useful for university graduates who are having trouble paying their student loans back. The program makes it easier to manage your student loans by reducing the amount you have to pay each month or eliminating all together.

Canada Student Loan Forgiveness for Doctors and Nurses

If you’re a doctor or a nurse you can qualify for loan forgiveness for your Canada student loans by working in a remote or rural area. If you are a doctor, you could qualify for up to $40,000 in loan forgiveness over five years ($8,000 per year). If you’re a nurse you could qualify for up to $20,000 in Canada student loan forgiveness over five years ($4,000 per year).

BRITISH COLUMBIA STUDENT LOAN FORGIVENESS

B.C. Completion Grant

Full-time students who successfully complete a year of studies may have the B.C. portion of their B.C.-Canada student loan debt reduced. There is not need to apply for this grant, you are automatically considered if you have a B.C.-Canada student loan.

B.C. Completion Grant for Graduates

A $500 grant for graduates from an undergraduate program. You must have a B.C. student loan and you must apply within one year of graduation.

B.C. Loan Forgiveness Program

Recent graduates in select in-demand occupations can have their B.C. student loans forgiven by agreeing to work at publicly funded health care facilities in underserved communities in B.C., or working with children in occupations where there is an identified shortage in B.C.

Pacific Leaders Loan Forgiveness Program

This program forgives outstanding B.C. student loan debt at a rate of one third per year. If you continue to work for the B.C. Public Service for three years, your B.C. student loan will be paid off in full.

ALBERTA STUDENT LOAN FORGIVENESS

Alberta Repayment Assistance Program (RAP)

Similar to the Canada RAP program, the Alberta RAP helps graduates who are struggling to make their monthly payments. This program reduces or eliminates your student loan payments. You have to reapply every six months.

SASKATCHEWAN STUDENT LOAN FORGIVENESS

Saskatchewan Repayment Assistance Program (RAP)

Saskatchewan also has a repayment assistance program if you are having trouble making your monthly payments. This program limits your monthly payments to no more than 20% of your gross income.

Graduate Retention Program

The Graduate Retention Program provides Saskatchewan income tax credits of up to $20,000 for tuition fees paid by graduates who live in Saskatchewan. To be eligible you need to live and file your income tax return in Saskatchewan. The tax credits are non-refundable.

Loan Forgiveness for Nurses and Nurse Practitioners

This program encourages nurses and nurse practitioners to work in rural and remote communities. You can use this program to receive $4,000 per year up to a maximum of $20,000. You must have a Saskatchewan student loan to qualify.

MANITOBA STUDENT LOAN FORGIVENESS

Repayment Assistance Program (RAP)

Surprise! Manitoba also has a repayment assistance program.

ONTARIO STUDENT LOAN FORGIVENESS

OSAP Grants & Bursaries

There are 12 grants and bursaries available to students with Ontario student loans. Most of them only apply to you if you are currently a student. You must have Ontario student loans to qualify.

QUEBEC STUDENT LOAN FORGIVENESS

Deferred Payment Plan

A version of RAP, the deferred payment plan allows you to pay back your student loans in accordance with your income. The deferred payment plan can be applied to a variety of financial institutions, not just provincial student loans.

NOVA SCOTIA STUDENT LOAN FORGIVENESS

0% Interest on Nova Scotia Student Loans

If you live in Nova Scotia, filed your income tax in Nova Scotia and have Nova Scotia student loans since 2007, you can apply for 0% interest on the provincial portion of your student loans. Your monthly payment will remain the same but 100% of your payment will go to your loan principal.

Nova Scotia Student Loan Forgiveness Program

This program is for Nova Scotia student loans (not federal student loans) issued after August 2015. You must be a Nova Scotia resident obtaining a four-year degree at a Nova Scotia university to qualify. You are automatically assessed for this forgiveness program, which can forgive up to 100% of your Nova Scotia student loan.

Debt Cap Program

The debt cap program applies to students who received Nova Scotia student loans between August 1^st, 2011 and July 31^st, 2015. Anyone who obtained a four-year undergraduate degree qualifies. You are automatically assessed for this program when you graduate. You could have up to 100% of your Nova Scotia student loans forgiven.

Debt Reduction Program

Anyone who received student loans between August 1, 2003 and July 31, 2008 can apply for Nova Scotia’s debt reduction program. You must have successfully graduated from your degree program to apply.

NEW BRUNSWICK STUDENT LOAN FORGIVENESS

Timely Completion Benefit

The timely completion benefit is available for students with New Brunswick student loans who graduated from a four-year undergraduate program after August 1, 2009. You must have a total federal and provincial student loan amount totaling more than $32,000 and you must apply within seven months of graduation.

PRINCE EDWARD ISLAND STUDENT LOAN FORGIVENESS

PEI Debt Reduction Grant

Receive up to $2,000 per year of study, as long as you take out at least $6,000 per year in student loans. You must have PEI and Canada student loans to qualify and you must apply within 60 days of your last day of class.

NEWFOUNDLAND STUDENT LOAN FORGIVENESS

Newfoundland and Labrador Debt Reduction Grant

With the elimination of the Newfoundland Student Loan, all financial assistance from the province is in the form of a non-repayable NL Student Grant effective August 1, 2015. If you receive provincial funding after August 1, 2015 you will be automatically assessed for this grant.

This may not be an exhaustive list. If you know of other programs that aren’t listed here, or if any of these programs have expired, I encourage you to email me and let me know so I can keep this list up to date.

If you’ve already applied for all of the grants you qualify for and you still have student loan debt left (as I did), the next step is to pay it off. I encourage you to use my debt repayment spreadsheet to find out how quickly you can pay off your debt.

Most of the programs listed above are only available for federal and provincial student loans. If you have your student loans with a private lender, you won’t be able to use the programs above. If that is the case, consider looking into student loan refinancing as a possible way lower your interest rate and pay off your debt quicker.

posted March 9, 2016 from https://myalternatelife.com/canada-student-loan-forgiveness/

Set realistic savings goals for your retirement

May 10, 2019 theRipregistry Uncategorized No comments

Want to start saving for the future, but not sure where to start? Use these tips to make – and stick to – smart savings goals.

Excerpts From Sun Life Assurance Company of Canada

Saving for retirement is the biggest and most important financial investment of your life. But if we’re honest, it’s also all too easy to put off. A five- or six-figure savings goal can feel intimidating, and saving for 10, 20 or 30 or more years in the future may not feel as pressing as, say, paying off your mortgage.

So if you’re confused about saving for your retirement – or you’re putting it off in favour of other financial goals – you’re not alone.

The good news, though, is that retirement planning doesn’t have to be intimidating or scary, and it doesn’t need to clash with your other financial goals. By deciding not to delay planning for your retirement, you’re off to a great start. Now, here’s how to set smart retirement goals now to give yourself more options tomorrow without sacrificing comfort today.

Take small steps towards retirement to stay motivated

Family & The Golden Years! — It’s Your Legacy…
You & Your Family Matter!

Feel paralyzed looking at a giant, lump-sum retirement goal? Break it down into manageable milestones. How much will you need to save for each year (or per month) of retirement?

To find out, go over your current annual expenses and estimate how much you’ll need in retirement, advises Janet Gray, an Ottawa-based Certified Financial Planner with Money Coaches Canada. Work out how much of those needs will be covered by income sources like Old Age Security, Canada Pension Plan or private pensions, and how much personal savings (possibly including tapping the equity in your home) you’ll need to fill the gap, if any.

Want to know how much you’ll need to save? Try this retirement savings calculator.

From there, create a series of mini-milestones: savings goals that, once you take into account the interest they’ll earn, would cover six months of retirement, a year, and so on. You’ll reach those initial milestones faster, and that will help keep you motivated to save.

Start saving now, even if you don’t have a solid plan

You may not need us to tell you that knowing you need a plan is not the same as having one. But, good news: You don’t really need a detailed plan to start saving, especially if you’re decades away from retiring. “It’s the initial step into the habit that’s the hardest, so just start,” assures Gray. “Once you have, it’s easy to make changes.”

Start with what you can consistently afford, she advises. If you can comfortably set aside $100 a month, even in leaner months, start with $100 – then up that figure gradually as you get into the habit of saving and as your income increases.

Reap the rewards of investing for your retirement

Part of the challenge of saving is that you may have to wait a decade (or several) to reap the rewards. But there are more immediate perks, too.

Both registered retirement savings plans (RRSPs) and tax-free savings accounts (TFSAs) have upfront advantages. You can deduct your receipted RRSP contributions from your income, so you can reduce the current taxes you’d otherwise pay. And you won’t need to pay any tax on the money you earn inside your TFSA – which means you’ll see some immediate financial benefits each year. Make a plan for the tax money you’ll save. For longer-term rewards, you can invest your tax savings in your RRSP or TFSA, if you have room. If you’re saving for your children’s education, you could put it in a registered education savings plan (RESP). You could beef up your emergency fund. Or you could reward yourself for smart planning by putting some of it towards something enjoyable, like a family vacation.

How to save for tomorrow when you’re not sure about today

May 9, 2019 theRipregistry Uncategorized No comments

by Kim Armstrong (January 2017)

Job insecurity doesn’t have to mean financial insecurity. These 5 tips will help you improve your financial health and plan for a brighter future.

Sophia Erikson is a 26-year-old who, for the past 2 years, has had to live away from her family and friends, moving from one contract job to another. She’s determined to find a full-time job working in public affairs, but the fear of not knowing what will come next has caused her stress about money and her future.

She’s not alone. The 2016 Sun Life Canadian Health Index found that one-third of Canadians are feeling insecure about their financial health, and precarious employment was one of the top 3 reasons they feel this way. Contract and temporary positions have become a big part of the evolving career landscape in Canada. It’s common to hear about people moving from contract to contract, often without a benefits package or a pension plan.

In Erikson’s case, anxiety about her contract’s undefined end date is negatively affecting her overall financial health. The unpredictable nature of her employment situation is keeping her from planning for the future and she can only focus on whether she can make ends meet if her contract ends tomorrow.

But job uncertainty doesn’t need to mean financial uncertainty. According to Sara Zollo,¹ a Sun Life Financial advisor based in Richmond Hill, Ontario , here’s what you can do if you find yourself in similar circumstances:

1. Cover yourself

Typically, contract positions don’t come with a benefits package. You want to be covered if the unexpected happens. It’s as simple as finding a good individual benefits package for a monthly fee until you have a full-time position with coverage from your employer.

2. Give yourself a buffer

Having an emergency fund with enough savings to cover 3 to 6 months’ worth of your critical expenses can help ease any stress you have about paying your bills.

3. Think twice before you splurge

If you’re on a contract or in an unpredictable employment situation, it forces you to be a little more conservative with your money. Use any bonuses, tax refunds or salary increases to bump up your emergency fund and pay down debt instead of that online shopping spree.

4. Start your own retirement savings account

Right now, while you’re trying to make ends meet, saving for retirement could be the last thing on your mind. But it’s important to set a small amount aside every month, in an RRSP or TFSA, to start saving for retirement so that you don’t find yourself struggling when that time comes.

5. There’s help when you need it

You don’t have to deal with financial stress alone. An advisor can help review your finances and develop a plan that works with your current situation.

RADIATION ALERT!

May 3, 2019 theRipregistry Uncategorized No comments

It is incredulous when you hear about radiation all around you, especially when it occurs in your own home. I have two videos I would like to share with you, comparing two of my own microwaves (one of which is roughly 30 years old).

As a baby boomer, owning a microwave, raising a family, keeping them safe and trying to be healthy, I would have never imagined, the potential danger lurking in my own home.
If you own a microwave this can be you!
Did you know, Microwave doors are to be inspected every two years for tight seals?

I am not impressed with the company, DACOR, or its recommended service technicians (Home Appliance aka HarGTA).

HarGTA aka Home Appliance, misdiagnosed my problem, billed and took payment upfront. Then they also charged me for my parts and delivery. They said they repaired my microwave only to return my microwave back to me a week later and say it was a door adjustment that was required. It still was troublesome and then returned to add it was a switch which costs about $1-$2 or so. This all started November 2018. Now I have radiation leakage for a misaligned door that doesn`t seal properly. I did some research and purchased a Microwave Leakage Detector.

You are not going to believe what I found…
Check out the video’s below!

I advise everyone to purchase Microwave Leakage Detector and inspect your microwave once it has been in for repairs or on an annual basis. It is fairly inexpensive considering the necessity and safety of your family. It can be an eye opener. They range from $20 and up. Mine was about $35.

Dacor Microwave (Newer model) ~$1365-$1600 + tax

Moffat Microwave (older model – approx. 30 years old):

Just because it is old… It doesn’t mean you need to replace it.

I never have had any issues with my Moffat microwave and it never needed any repairs.

I have moved and reinstalled my Moffat microwave under different cabinets many times only to see that it is still safe for me and my family.

It continues to work well unlike my DACOR microwave.

Why The RIP Registry?

November 28, 2018 theRipregistry Financial, Insurance, Planning, theRIPregistry, Uncategorized No comments

In today’s world there is so much happening and we are rushing thru life at record speed. We want to ensure we build a portfolio for our retirement and to leave a legacy behind, when the time comes. I felt a need to create this for myself and soon realized, I’m not alone and there is a general need for a registry like this. It all started with my dad going to the hospital and having to drop everything to take care of my aging sick mother.

theRIPregistry.com

All posts tagged: theripregistry

Can you reduce or avoid Capital Gains Tax on Stock

Are Gifts or Inheritances Taxable?

It’s that time… FFT