B4 - Sunday, March 18, 1984 - North Shore News

TARSA

Vancouver.

SURPRISE FROM REVENUE CANADA
Tax news for Bond holders

MH O ECL ase

| cs
VW CER ais

amv defate fille thet.

cf

we
i

REVENUE CANADA had welcome news recently
for thousands of holders of Canads Savings Bonds.

Under a new tax ruling,
holders of four CSB issues —
Series 32, 33, 34 and 35 —
were given the option of split-
ting the interest on these
bonds into two components
— ‘orginal’? and ‘‘bonus”'
interest — and treating the
‘*bonus’’ portion as a capital
gain for their 1983 tax return.

The ‘‘original’’ interest is
the amount the government
agreed to pay at the time of
issue and 1s taxable as interest
income only. The ‘‘bonus”’
interest came about when the
rate of return on these bonds
was raised several times since
their issue to keep them com.
petitive at a time of rapidly.
rising interest rates.

Figurnng out ‘*bonus"" and
*‘onginal’” interest for your
1983 tax return is celatively
easy

To get started, simply pick
up a copy of a special CSB
pamphiet available wherever
you do your banking

There are two pamphiets
Canada Savings Bonds Infor
mation for Bondholders.
Decembcr 1983 edition, and a
February supplement” It ots

the supplement that contains
all the details on ‘*bonus”’
reporung.
REGULAR
INTEREST BOND

If you're a holder of a
$1,000 Regular Interest Bond
of Series 32, for exampie,
you will see that it earned
$120 in total interest for the
year ended Nov. 1, 1983.

Of this, $82.50 was
payable as interest under the
onginal agreement, leaving
$37.50 as ‘‘bonus”’ interest
it is this ‘bonus’ portion
that can be treated as a
capital gain. As a capital
gain, only half of the $37 50
is added to income

COMPOUND
INTEREST BOND

For compound Interest
Bonds things are a bit more
complicated. For cxamptic, if
you have been accruing o1
declanng the interest on a
bond every year and you did
not cash the bond last year.
you should report the
“‘onginal™’ anterest for 1983
in the normal way You can
report all or any part of the
bonus’ amount as capital

NORTH SHORE BRANCHES
1452 Lonsdale. N Van (985-7487)
1645 Marine Dr W Van (922-0158)

“Rates subject to change

SHOWING a symmetrical beauty, these hydro transformers are lined ap in their rows near the Coach House in North

gain — but only when the
money is actually received,
either at maturity or when the

bond is redeemed.

Here’s how you figure out
the interest earned in 1983 on
a $1,000 S32 Cempound
Bond.

First, check the tables con-
tained in the special February
supplement we talked about
earlier. This $1,000 CSB was
worth $1,758.96 at Nov. 1,
1982 and $1,970.03 at Nov.
1, 1983. The difference —
$211.07 — was the total in-
terest earned during the year.

The value of the bond atl
the onginal rate ts shown at
$1,467.57 at Nov. 1, 1982
and $1,587.78 on Now J,
1983, leaving $120 21 in
“*original”” interest.

The difference between the
total $211.07 carned and the
$120 21 of ‘‘omnginal’’ in-
terest 1s $90 86 This ts the
amouat that can be treated as
a capital gain — but ts only

reported at redemption or
maturity All you report in
1983 is the $120.21 of
“orginal”’ interest

You don’t have to do
anything for your 1983 tax
return af} you haven't) been

reporting the interest on your

MEMBER CANADA DEPOSIT INSURANCE CORPORATION

Ad BRON Coleg Poy

RETURNS

Commission Salespersons, Smalt
Business, Renta! & investment

income .
© Will prepare in the home for home éé
bound ‘and senior citizens are

Complete Confidentiality and
Reasonable Rates

20 years experience with
income Tax Department

AUSTIN | 7
INCOME TAX —
e Confidential
@ Reasonable rates
® Visit for free estimate
« Complete review tor
maximum tax deductions
In-before-Sarm—— -——----
out before 5pm

Suite 1-67 Lonsdate

N. Vancouver
{near Seabus)

986-0084

ee
TAMARA BOECKLE

926-0579 ‘

Tax Tips on the
Knowledge Network

A special one hour television program. entitled “How to
Prepare an income Tax Return’. will be presented. as a
public service, by the Certified Generali Accountants
Association of B.C.

The program will appear on Knowledge Network on Monday. .
March 19, 1984 at 7:00 p.m.

For a FREE C.G.A Tax Tips brochure call or visit:

PERRAULT, SMYTH & COMPANY

Certified General Accountants
102-1975 Lonsdale Avenue

North Vancouver, B.C. V7M 2K3

987-8101

Compound Interest Bonds on
an annual basis — unless, of
course, your bonds were
redeemed during the year.

The TS and T1600 slips
showing the total interest
earned in the 1983 tax year
will not be amended but will
be accepted by Revenue
Canada as issued.

To benefit from the bonus
ruling simply calculate the
split on your bonds and in-
dicate the ‘‘original’’ and
**‘bonus’’ amounts on your
TS and T600 slips. Previous
(ax returns cannot be amend-
ed to treat, as a capital gain,
any ‘‘bonus” interest already
reported.

Both the ‘‘onginal"’ and
“‘bonus'’ interest reported :
for 1983 quahfy for the Lanes
$1,000 interest, dividends

Display 980-0511

ae * he i
GLYN THOMAS
Gerald Locke, Manager of The Permanent
Real Estate office Richmond. ts pleased to
announce the appointment of Glyn
Thomas He brings with him many years ot
successiul sales and tinancial expenence
Glyn looks forward to serving his many
tnends and associates He can be con

tacted at
273-3161

and capital gains deduction.

oe ‘
WHEN DID YOU LAST
CHECK UNDER THE HOOD?

oie

Announcement

We wish to announce the appointment of

W.H. Groundwater Ltd.
165 Amherst St.

As a parts & semice deatert lor Mach Trucks
tt) parts tor all makes

* Rockwell, Timken Bearings
¢ Drum Tuming Equipment

¢ Stemco . Hendrickson, Abex & Fuller
¢ Cummins, GM. & Cat Filters

vancand Mack SALESLTO
_— 929-1323