B4 - Sunday, November 25, 1984 - North Shore News RHOSP TIME VEN IF you aren’t planning to buy a home for some time there’s one way to shelter a good chunk of your income from taxes. It's called the Registered Home Ownership Savings Plan (RHOSP), and it’s available to anyone 18 and over who is not already a homeowner, and who meets other simple requirements. You can put up to $1,000 a year into a RHOSP (to a maximum of $10,000 total in contributions) and not have to pay taxes on it. You can deposit as little as you like, when you like, and can with- draw the total amount (including interest) at any time up to 20 years after the plan’s purchase, to make a payment on a house, apart- ment, floating home, condo- minium or mobile home. dif you haven't purchased a home by the end of the 20th year, your RHOSP 1s auto- matically closed, and you receive the money in Il as (ax- able income.) It's called a ‘‘registered’’ plan because it’s registered with Revenue Canada Taxa tion You buy it froma bank, credit umon or trust com. pany, and get an official recetpt to file with your tn come tax return purchase vour (Evenit vou RHOSP on Dec 31, to quality tor a deduction in 1984, you should receive this offieral receipt by March, pust in time to file ) To quality to purchase an RHOSP you need to be over 17 divingoan Canada. and can never have had an REOSP before If voulre married (and are buying 4a plan oon “INVESTORS” A message from the PK Market Repor! By LISA SMEDMAN 1984), your spouse can not have owned or had an in- terest in any real estate that anyone lived in during 1983 or 1984. And, of course, you can not have owned such pro- perty in those years. You can, however, already be in the process of building a new home when you _ pur- chase an RHOSP, as long as nobody is living in wt. And both you and your spouse can combine separate RHOSPs to purchase a home, so long as the pur- chase 1s made in both names, and you both move into it. Only one person. can contribute to a plan. Once the money ts withdrawn, it must be used to purchase a home that the plan holder will move into within up to 60 days after the end of the vear the withdrawal is made in There iS even a= special deduction available to any one who closed their RHOSP to make a purchase that sub sequently falls through Although they can never again purchase an RHOSP., and must pay taxes on their income from the plan. thes ate given three vears’ grace after the withdrawal yea It they purchase and live in a bome within this Gime. thes can deduct the amount oft money that was en ther plan wher thes closed ap trom an come miade oa the vear thes purty hase thre hore It's even possible to pur- chase an RHOSP early tn the year, buy a home that same year, and still claim the amount you contributed to your plan as a deduction trom that year’s income. So, if you are planning to buy a home in 1985, you should be making a contribution this year, and in 1985, to receive (wo years’ worth of contribu- tions before you become a home owner, and thus in- eligible for an RHOSP. Before you buy an RHOSP, you should make a few phone calls to different banks, credit unmions” and trust companies to compare interest rates offered at each. These rates can vary from 7¥_ to 12'2 per cent, and can change through the year, fluctuating with the prime in- terest rate Some banks calculate tn- terest on a daily balance, while others use a minimum monthly balance. (With a plan calculated on a mini- mum monthly balance, you should avoid contributing to your plan in the middle of the month, because the money you put in at that time will earn no interest. Better to leave the money in a savings account where it will earn in- terest’ until the end of the month.) Most banks pay interest on your RHOSP ‘‘semi annual- y’’ (at the end of June and December). This means your momey will earn compound interest (interest in December 1s paid on the interest made in June). Most banks require any- where from one to. four weeks’ notice to close a plan. Between January and March, however, it could take longer, because of the annual rush to purchase RHOSPs Buy a house and save on tax and Registered Retirement Savings Plans (RRSPs). THE DIET BUSINESS iS BOOMING! ENTREPRENEUR MAGAZINE has ranked DIET CENTER as the #1 Weight Control Franchise in N. Amenca 4 years in a row!! if you are interested in GOOD HEALTH, LOVE PEOPLE. and have erther OVERCOME A WEIGHT PROBLEM or would like to do so, you should investigate this unique Opportunity Our outstanding tranchise program ofters immediate cash flow. excellent profits & return on investment and unkmited earning potential * CALL > (403) 283-0200 TODAY own i Xe —<— « MINIMUM INV. REQD. $20,000 Please note! Once Bonds Gold Interests every 50 years there rates 01! Corn comes a penod of modities Hel Estate. rhe econome change sO and the general Annum disruptive that to economy all Nave (annual yield violates evetything been accurate to date compounded quarterly 8S 51%) you thought you knew TO aboul Investing The author also 3S in Are You Ready Por publohes a monthty tn Start tailed tel Del atron? Ite vestinent Newsletter ar mall yerur tax shelter toatay wath a bevlicus Wave The PR Market credit amon REHOSE Phe plan that saves on (heory written in Togs Brerpocaet Vejen 4 bet ou; oye wile yeu paws Har von ones Fitts Dy beter Ratha ray Ter yt feres tage ding Me Deda tag to $1 OOO a Gear trot your tacable att, . der my oy Tyee Cotter it tom polettheaticot 1° adit htcn Ww tu Aprpreredl ee a “ - aren _ 7 ue tes Wiley Thee 50 yt 1 ro " ‘ v 1 rota a X my MOAT epostt Qethataus carat bteetat VIEW fy mh v4 tee Call vena Cred act somda aed get the rerercd ot. Be A \A. 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