Business 31 - Wednesday, March 6, 1985 - North Shore News rome, sweet tax shelter ost articles on retirement planning con- tinue to hammer away at the same old theme of RRSP’s, annuities, and RRIF’s. when the very best and simplest tax shelter of all - your own home - is frequently ignored. So; let's take a look at all the opportunities for building a tax-sheltered retirement fund by owning your home. You don’t have to be mar-- tied to take advantage of this unique tax shelter. Although, traditionally, couples tend to buy and singles tend to rent, all tax payers whether mar- ried or not should take a Jong hard look at the advantages of heme ownership as a tax shelter and retirement fund. First of ;all there is the Registered Home Ownership Savings Plan (RHOSP) which, although more limited in scope than the RRSP, pro- vides a true tax savings. The fund is not taxable when used to buy a home. Certainly the RHOSP should be carefully. con- sidered by younger people before putting their savings into the more complex . “RRSP. The recent Pension Reform proposals, which are almost certain to be enacted in due course, will enable younger people to defer con- tributing to. RRSP’s without Josing the eligibility of their ‘early earning years. This will make the RHOSP a very. at- tractive first choice for their tax-deductible savings. _ _ Should you borrow heavily to buy a home rather than rent? There:is -no. simple answer to this question. Logic and arithmetic will fre- quently-indicate that this is BERT WICKHAM your home your first priority should be to pay off your Mr. Build is now interviewing Property Service Contractors in your area. You may qualify to become part of the largest Total Property Services organization in North America. MeHoweven the castucton | 20find out call of owning your own place is of 276-2325 supplemented by the forced oo, savings aspect of having to Tak es .pay off. the mortgage. Pride We're the team ’ of possession ‘will. also en- that takes care courage . the: spending of of North America. money on improvements ; -rather. than consumer items and entertainment. Although ‘the real estate market fluc- tuates and speculators. fre- quently .get <‘‘burned’’, the “family home almost always accumulates in value over the long: haul. And remember, the capital gain ‘is tax free. Furthermore, you will be liv- ing ‘‘rent-free’’ and this . return on your equity is a tax- ‘ free benefit as compared to the interest you might earn on other investments. Once you have acquired (ues: CLASSIFIED 986-6222 FS NEES Real Estate Career Night Thurs., March 7 7-9 p.m. .Bring your questions to this frank discussion of considering real estate as a career. 3 panel speakers ‘Location: The Permanent 107 Kap 100 Building South Park Royal West Vancouver a 922-1244 aa Everyone is welcome free. i | on! esis NC gf ‘ a ig the Permanent ES MrMBuild “TOTAL PROPERTY SERVICES” mortgage as quickly as possi- ble. The interest you pay to the mortgage company is not tax deductible so it doesn't make sense to invest to pro- duce taxable income while you still have morigage debt. There is no investment as good as paying off your own mortgage! If you feel uncom- fortable without some safe investment reserve such as Canada Savings Bonds, etc., then borrow the money to | buy them. The interest you pay will be tax deductible. So much, then, for the building of your “retirement fund’? home. What is the situation when your retire? Should you sell or five in it? There are two sides to this question: First of all, if you have enough other income for Mr. Build. stands behind the job. hey hald Co ated & Conmersal Daven of a € ¥. who keep: yo : are orilyt the begi ‘answering: groceries, ctc., then your mortgage-free house represents an inflation-proof, rent-free home for as long as you feel able to maintain it. On your death, it will pass to your heirs free of any death or rapital gains taxes so it also represents a valuable estate asset. As such, you can feel more comfortable using up your other capital to live on, as you will still have a valuable legacy for your family when you die. On the other hand, you may prefer to sell and ‘‘trade down’’ into something smaller. Or you may prefer to rent and use all your equity to provide income. There are two tax aspects which favor either of these strategies. Firstly, your capital gain would be tax-free Introducing our newest member B.A. BLACKTOP A trusted name Sor over 28 years For the best in Blacktop Driveways Parking Lots Play Areas We have to be the best because Blacktop is our name. B.A. BLACKTOP 985-0615 298-5226 wv andevendenthe wened wil overated He Senta ) so all your equity would be available to produce income. Secondly, any income pro- duced by, say, a prescribed annuity, would be only partly taxable as compared to the fully taxable income from an RRSP. If an annuity is not for you, then you would have a chunk of tax-free capital to enjoy or invest any way you like. So, don’t overlook the family home as your life-long tax shelter and retirement fund. It can be @ great “‘shelter’’ in more ways than ‘Lighting 3971 No. 6 Road Richmond. Ph: 273-1011 31748 S. Fraser Way Abbotsford. Ph: 359-7657 45732 Yale Road West Chilliwack. Ph: 525-5515 Vancouver Pronicr Showroom NORTH VANCOUVER SHOWROOM 1090 CHURCHILL CRESCENT PHONE: 980-9501 - OTHER FULL LINE LIGHTING SHOWROOMS AT: | 24, HOURS | TELEPHONE? ' ANSWERING SERVICE: 400 West Sth Avenue Vancouver. Ph: 872-8383 10367 - 135th Street | Surray. Ph: 588-1231 UNION | ELECTRIC SUPPLY CO.LIMITED MONEY _ PROBLEMS GOT you if you ve got a tax refund coming, try BenTax for fast, fast, fast relief. Feeling a dull tnud, thud, thud in your head? A queasiness in your stomach? It may nol be the weather thal has you down. It may oe that pile of bilis staring you in the face. Try SenTax for fast, fast, fast reliel. If you nave a tax refund coming ~- a BenTax Fast Cash Refund can ge: you the money tor your telund fast Usually in yust a few days. BenTax will prepare your return and get you your refund all ala Compettive rute So why vai weeks and weeks? Come to GenTa» tor fast. fast. fast reel [rom your money, woes, See BanTas too. for quality preparation of Just joo for the bight orange sign There's you shindard tae returos a Bent othee near BenlTax FAST CASH REFUNDS ¢ QUALITY TAX PREPARATION 123 East 15th St. N.V. 988-6121