~ *Oh,- ya.’

[om nnnre mie netic te wanes net

Forward averaging

can spread tax load

ack in the good old days, prior to 1982,
Revenue Canada used to do a complex
calculation called general averaging which
resulted in some welcome tax savings | for many

- people. ..

The general- averaging

‘ calculation compared a cur-

rent year’s net income with net

. incomes of the four previous

years, If the current net in-
‘come was significantly higher,
“that higher income was effec-
tively ‘Spread. back. over the
previous years: This meant
that taxable ‘income’ for the
(current year’
signifi cantly lower.

For many people. who had
just entered the work force

after four.years of little or no =

income, “general averaging:
‘could produce a refund where .

° no refund was expected. When ~

~.. general averaging was applied.
tomy 198] return, my refund.
"increased by $277 - anice grad

-* present after four years as a.
low-income student. ree es

But the 1981 tax year was

swas ~ applied. (During that

“averaging, which was done by
uRevenue Canada during the
Ss. forward

“grams could streamline. your

(business mailing: and: contact

lists, giving: :

‘the Key to

formation.
:.KriegerData;

10-year-old

"North “Vancouver.: mailing

‘company, has recently come
--Out: with a software program
for: ‘IBM "PC: computers, of-

“fering? a “mail. ‘function’ for:.

the word’ processor, aswell

as a data base to’store perti-

“nent information - on clients,
‘and ‘customers. é
- Necessary - information
“night include a client’s pro-
-. fession, ;-business, ;types of
products. they. buy, or. sell,
references and. dates to call
them back,.explains market-
‘ing manager Dave Galloway
‘of KriegerData.
' Lists of names can be
coded and called up in a se-
cond,- saving time and
money that. would be other-.
wise spent in manual filing.
“The user defines the codes
they need,’’ Galloway ex-
plains. “They can customize
their. own program to’ suit

them perfectly, We include .
48 boxes to store different °
information in,

“Some people hear about
a mailing system, and say
But people don’t
realize it's more than a mail-
ing system, It’s the informa-
‘tion that goes with - the
names and addresses that’s
so important.”’

Special editing features
prevent error and a function

key to duplicate any ad- -

dresses or just the city and
province. saves time,
Galloway continues.

’ KriegerData began when
the owners (Kriegers) came
out from Germany. and

could be.

‘the last year general averaging’:

“year, it, benefited. more ‘than. -

three “million: people’ ‘to’ the =.

if: 5363, “ ing was- chosen to- replace

ae general ‘averaging ‘because ‘it

*,, could benefit taxpayers whose

“ ‘ “income - fluctuates.
"showed | “‘up;on: ‘the: 1982: tax:

return. In contrast to general :

n- keypunch mac

By LISA SMEDMAN

averaging is something you
have to do yourself,
Forward averaging is a
means of excluding income
from your | return during ayear
when you're earning a lot of
money, and bringing it back to
your return when you're in a
flower tax bracket. You still
pay tax on this income, but the

“averaging formula that is us-

ed usually. turns forward

averaging’ into a tax savings

later, when the taxes you paid

are. brought back as a tax.

credit, Forward averaging can

be especially :. ‘useful Jin .
spreading. income earned. in:
one lump sun (ie: an inheri-

tance) over. the following

years. _

Susan’ . -Bernanose, - of
Revenue Canada’s public
realations department, ex-. ,
plained that-forward averag-

General
averaging, on the other hand,
only benefited those whose in-
come suddenly rose, and then .
-only in the first year that in-
come increased, said

By BARRETT FISHER

began a mailing -list system +:
‘worth, Galloway says a for-

out of their basement using a
hine,

Galloway says. ‘‘Over the

"past 10 years their expertise
-in personalized letters and

labels, sorting, selecting and

~’mailing got them involved in

‘FORAC

*PRELICENSIN

by our branch managers.
, How successful you are

essential backup service
need.

company with offices ac
U.S. and in Eurcope.. Cail

West Vancouver
Bob Norquay
925-1441

PREPARE YOURSELF
IN REAL ESTATE

*POSTLICENSING COURSES
“ONGOING TRAINING

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Royal LePage is Canada’

985-8231 J

Bernanose,

The catch is that you have
to know what you’re doing to
use forward averaging. The
timing of when you bring the
income and tax credits back to
your return can be crucial.
And you have to be able to
predict what your income will
do in the next few years.

-To qualify to use forward
averaging, you must have been
a Canadian resident through
both the tax year and ‘the-
preceding two years, and you
must have filed ‘income tax
returns for the preceding three
years. (Special rules apply to
immigrants.) And you must

‘forward average a minimum

of $1,000,

To . make. the, forward
averaging . calculations, you
will need form T540, available
from Revenue Canada. First,
you'll need to know your net

income: from ‘each of the

preceding three years. Each of
the. net- incomes. is first
multiplied by an “‘indexing

factor’ — a number used to |
‘turn the income into 1984

dollars.
The sum of the adjusted net
incomes is then divided by

three to get an average, which ~

is multiplied by 110 per cent to
give you a figure called the

_ “adjusted income.’’ The ad-

justed ‘income is then sub-
tracted from your current

. year’s. net income. If the total

that you wind up with exceeds
$1,000 it can be entered on

both. stall ‘and large com-
panies.’”
Asked: what the system is

tune, but he adds it only
costs $450. For fi:rther in-
formation on the software
program, call Dave

- Galloway or Graham Holt at

988-4161.

AREER

G COURSES

or can be as a real

s, is Nationwide and

s leading real estate
ross Canada, the
for more information.
North Vancouver
Chuck Traunweiser
985-9544
-Harold Dueck

your return on the line reserv-
ed for forward averaging (line
256).

-You must also, ‘however,
calculate your income tax
return down to line 256
(without doing any forward
averaging) to determine what
your taxable income would
normally be, If this figure is
less than the total you get
when you do the above
calculations, it is the amount
that may be used in forward
averaging. (You always use
the lesser of these figures, pro-
viding both exceed $1,000.)

“When deciding whether or
not to use forward averaging,
remember that you will be
paying taxes on the amount
you forward average at the
highest federal rate. (You will

also have to pay any pro-

vincial taxes owned on this
amount.) For this reason, for-
ward averaging usually bene-
fits those in the highest tax
brackets, who know that their
income could fluctuate drama-
tically in the next few years.

ae
> Growing .
together with the.

committed to the
prosperity and
financial success
of its members. .

innovative service
and community
involvement make

in a financial
institution. «

Lonscale
1100 Lonsdale Avenue
986-4321

North Shore we are

& Over 40 years of

us your first choice

AVAILABLE FOR LEASE

LIGHT |

- 46,190 sq.ft. filled and fenced
-1 to 3 year term

- suitable for open storage.

- exposure onto dusy street

- call the Land Department at the District
of North Vancouver 987-7131

THE CORPORATION OF THE
CITY OF NORTH VANCOUVER

‘NOTICE ..

- Inaccordance with the provision of the noch ofNorth

Vancouver "Fire Prevention 8

‘law, 1981, No. 5343,

‘DRY GARDEN REFUSE ONLY may be burned on... &
the following dates without a special permit, being

optained:

SATURDAY

SUNDAY

SATURDAY

SUNDAY

- MARCH 30TH
: MARCH 31ST

AND . .
- - APRIL STH

- APRIL 7TH

Fires are to be small.and attended by a competent
person, and smoke and fly ash kept toa minimum.

E.A. Raymond |
City Clerk <*

City. Hall, 141 West 14th Street,

North Vancouver, B.C.
March. 20, 1985 oy

Seven convenient locations to serve you _

Lynn Valley
1247 Ross Road
980-6556

Marine Drive

1080 Marine Drive

986-1116
Dollarton

399 Dollarton Hwy. N.

929-8111

Village
3131 Edgemont Bivd.
985-8221

Park Royal
South Mal (Gallery West)
926-8571

Whistler
4313 Skiers Approach
932-5314