22 - Wednesday, May 20, 1992 - North Shore News a USINESS Hold on to all receipts if GST claimed as a business expense A LEAKY roof, the GST tax credit, pensions — we have it Michae) all for you today. “Do we meed to save ail the receipts for owr purchases so we can clain the GST deduction or rebate?” — R.P. No, you don’t need to keep any receipts to claim the personal GST tax credit. It’s a refundable credit, which means you can receive a cheque from Ottawa even if you don’t pay any income tax. Your GST credit depends on the size and income of your family; you must be 19 in the tax year to make a claim or if under 19, mar- ried or a parent. See form Ti GSTC which came with your tax return. If you qualify for the credit but didn’t apply, you may go back to 1990 to apply for the credit paid in 1991 or to last year for the credit to be paid this year. Note that if you are claiming the GST as a business expense or irput tax credit, then you must keep all receipts. “I had the roof of my trailer done because it. was leaking. I paid $400. Can I take thai off my income tax? I am 60 with no pen- sion.”’ — L.L. Unfortunately, no. You may never claim expenses that are strictly of a personal nature. Now, if you had an office in your trailer from which you managed revenue property or ran a business, then you could claim a proportionate amount of the repair, maintenance and operating costs because you were spending; that money in an effort to gener- ate investment or business income (provided you had a reasonabie expectation of profit). | “We're in our early °50s, with our own income, no debt, a reve- nue property and savings both in- side and outside our RRSPs. Should we leave our money in RRSPs or cash the plans to buy auother revenue property?” GP. Because you pay tax on withdrawn RRSP funds, you have less money to invest. Loss of the capital gains exemption on profits when you sell revenue property (bought after last February) is Join us, for the Variety Club Dog-a-thon; a family event at which North Shore residents and their canine companions another tax blow. You could borrow from your RRSP to finance another proper- ty. Or use your non-RRSP funds, which are probably earning tax- able interest at the moment. “We are in our 70s, both retired missionaries. My wife receives no pension but did receive $600 out of her RRIF, from which $31.53 tax was deducted. Does she claim the $1,000 pension income amount or only $600? And can she get back the $31.53?"’ — 5.M. She may claim only the $600. But she should probably take $1,000 out of her RRIF each year from now on — io claim the full $1,000 pension income amount as tong as it is available. The $31.53 held back, like all other tax withheld at source, is shown as a credit at the end of your tax return, on the line “Total income tax deducted (from all information slips).”’ “Over the past couple of years i have been resding in your column about private pension income you can create once you reach 65. But no one, not ever bank officials, know anything about this. i have to manage my own affairs as my husband wil! have nothing to do with my finances.’’ —- N.S. Once you turn 65, if you have no pension from a _ former employer, you may create your own private pension to claim this tax credit (CPP and OAS don’t qualify). If you have not yet started to draw on your RRSP funds, you may convert a minimum of $1,000 VARIETY CLUB - eA wag Saturday, Mi to an RRIF, or more if you choose to buy an annuity. The RRIF or annuity income quatifies for the $1,000 pension income amount. So does the income from a ‘qualifying annuity’? (look for flexibility), which you may buy with non-RRSP funds from most financial institutions. Ask for the person who specializes in RRSPs, RRIFs and annuities. “Pm 39 and pregnant with my first child. P've just been laid off after working for 7% years. If I leave my pension, I'll get $228 a month when I retire. Or would it be better to take out my money and invest it myself?** — E.G. If you are good at managing your finances, you will probably do better to transfer your pension to your RRSP, where it will con- tinue to grow in a tax-sheltered enviranment. This should also give you more flexibility when you eventually withdraw your funds. If having the security and diver- sification of that future income is important, or appropriate to your financal situation, then leave your pension with the employer. (Note that even if inflation averages only 3% a year, that will cut the pen- sion’s purchasing power by more than half by the time you retire.) Mike Grenby is a North Shore-based columnist and in- dependent financial adviser who works with individuals; he will answer your questions as space allows — write to him c/o The North Shore News, 1139 Lonsdale 4ve., North Vancouver V7M 2H4. 192 CIVIC $2 06 A MONTH 92 ACCORD EXR, auto, loaded 92, PRELUDE Power windows, roof, cruise NORTH VANCOUVER 984-0331 y 20th, 1992 11:00am - 2:00pm, Mahon Park (16th and Jones in North Vancouver) much more. There's even a Fashion Show for pets! Bring your dog in costume! will walk laps around the track at Mahon Park for pledges to raise funds for the Variety Ciub's special kids! All pets automatically qualify for judging in many fun categories including largest dog, smallest dog, fluffiest dog, noisiest dog, most laps walked, most funds raised and FUN FOR THE WHOLE FAMILY! OPEN TO PEOPLE AND PETS OF ALL AGES! SPECTATORS WELCOME! GREAT PRIZES! EVERY CHILD AND ALL PETS WILL TAKE HOME A GOODY BAG! Photo: Joy Metcalfe, Dog-a-thon Honourary Chairman and Jessie and Patch (1992 Variety Club Telethon Mascot) Mail your registration today or deliver it to Variety Club booths at these North Shore Malls: THE FOX WILL REGISTRATION FORM BE ON HAND! VARIETY CLUB DOG-A-THON Saturday, May 30th, 1992 Name Address Home Phone Work Phone LYNN VALLEY CENTRE ON MAY 15 LONSDALE QUAY i OS wn eT a ON MAY 16 SPONSORED BY PARK ROYAL ON MAY 22 CAPILANO MALL So = ON MAY 23 : pect SUNDAY » WEDNESOAY - FRIDAY Age PLEASE PRINT e {# child under 15 years) i Dog’s Name Ue Type of Dog Please send me pledge forms. {Your pledge forms and event detaite wi pe mailed ip yous DOG-A-THON - c/o Variety Ciub of B.C. 1250 Homer Street, Vancouver, 5.C. V6B 2Y5 | Return to: