Tips on taxes can help reduce what you pay REVENUE CANADA just ‘loves you when your taxable ’ income. passes $29,510 — although you probably won’t reciprocate the feeling. _. (Warned a Certified General * Accountant (CGA) whose public _ practice includes tax planning for ~ both business and individuals: ' “Once your paycheques, pen- sion, investments and:any other ‘sources of:income push your tax~ cable i income above that level (that's . the 1993 threshold), Oltawa col- “lects about 41 cents of every addi- “tional dollar of income. “Below that. level, you pay ~ about 26 cents tax after you have claimed the various credits. ’ “voe.“Once your income gets into the 50s, you start to return any old age security payments you received last year.And you'can: also look for- ward to Otlawa ‘taking back close 0: half oe any aaditeaa doltar. . reducing: taxable ; ncome “by: $1,000 will save -you: etween $260 1 and $500 in taxi: sis CGA ‘ubeostes the aoe able‘donations. If you give 5259 | in Do any family members in a 2 lower wax bracket work in your - business or on your revenue prop- erly? Pay them what you would have paid an outside employee —- plus a bonus if they were more pro- ductive. : Deduct the expense; this shifts income into their hands, They will pay less tax than you would have, Gi Create a pension. Are you 65 or older and have no private pension from a former employer? Then use MSP (regis- tered retirement savings plan) —~ or non-MSP. — money to create at least $1,000 pension income a year and save about $265 tax a year. Whose money is it? The family member(s) in the lowest tax bracket should always declare as much of the family’s jnvestment income as possible. Just make sure you can show “that the individual ‘earned, inherit- ed, won, etc, the capital producing “ this-income. Note if you give or “leid ‘money ‘toa spouse or child under 18; you must still declare the “interest and dividends earned by the gift or loan, Bi Love.that MSP. “AS‘Soon as ‘you’ ‘ve made your 1993 contribution to'an RRSP, start on your 1994 contribution — per- > haps-on-an’ automatic monthly ‘basis. “Be sure you contribute to a year: and $250 the next years, : ; ee MSP. if your spouse’ will be yous will: Saye: about $130 tax — in a-lower'tax. bracket thin you when the RRSP funds are’ with- Suve ‘tax now and your ‘spouse will » pay back less tax later than you." i performance: and attractive Future poten-| eta yield as of Nov. 30, ‘93) | , portfolio diversification. This results in reduced risk as well as ter ‘performance i in the long run.. ggre 10 yr 16.9%. a INCREASED SERVICES - For the 1094 tax year, make your spousal contribution before Dec. 31. In some situations, this can cut the waiting period to two years from three before the money belongs to your spouse for tax pur- poses. — You may put up to $6,000 a year of your. private pension (not CPP or OAS) into a spousal MSP in additional to the normal contri- bution limit. Note that 1994 is the last year for this special rollover. Otherwise, the regular limit is 18% of your carned income in the previous year, up to $12,500 for 1993 and $13,500 for 1994, minus any PA (pension adjustment — shown on your-T4 slip). Bi Happy camper. Some camp and boarding ? expenses, as well as babys, might qualify as child care © es. Ask the tax office for Hn? Care. Expenses Tax Guide. @ Learn this one. ary Stu- Make sure post-second? jf possi- dents in the family claim al moy ble deductions — includin®. oy, 9. ing expenses to a summef - first job following graduallé tuition or education amount dent cannot use may be 114 ndparent to a supporting parent, gra? 202 or or spouse; use form T2 T2202A. B Make your move. If you moved 40 km 2 closer to a new job last yeu school sitting, meena SEERU E ‘ Introducing our exclusive, Interest Rate Protection Cuarantee for your RRSP savings. * Open a new RRSP account: * Transfer your existing RRSP * Renew your current RRSP. and you've got an assurance of the best rates for your savings. North Shiore Credit Union guarantees to meet the. interest rates offered by the major chartered banks 0% the day you deposit. In other words, you won't find a ‘rate (han the one offered by North Shore Credit Uni Bank, Bank of Montreal, CIBC, ‘Yoronto Dominion oF EXCLUSIVE RATE ADJUSTMENT OPTION : i any of the five major chartered banks should incre! same terin within 30 days of ‘your ‘deposit, our ex xelusi¥ an you inerease your RRSP interest rate to mateh. This exclusive Interest Rate Protection Guarantee 1994, apply to RRSP accounts transferred before March: 34, WE g GUARANTEE 7 A great return on you and the flexibility to take advantage of petter.- : sav ings jncreased interest rates. Hr addition to recommending superior performing mutual| funds, our clients can invest in blue chip. stock, treasury bills, preferred. shares, bonds and other investment t vehicles to suit] their needs. | Contact Patrick Lychak or John Cooper for a no obligation | financial consultation. Ask about why Asian & Emerging Markets funds should be considered as foreign content . ~~ portion of your RSP. . Check out RRSPs at North Shore Credit Union today! “| Patrick Lychak. . 1 643-0178 John Cooper 643 -0186 all moving expenses for which you were not reimbursed — including the real estate commission on the sale of your home, Ask for the Moving Expenses Tax Guide, Bi Death and taxes. an Up te four tax returns muy be filed — and four sets of tax crediis . claimed — for a person following death. A spousal MSP contribution . may be made by March | of the - year following death, 5 WILCOTT & Co, CGA _ Professional. : Accounting Sarvices , PERSONAL & CORP TAX Business Plans ©: ' Cash Flow se 054 s on at Royal. _ ns Bank of Nova Scotia. se their posted rales 0 on the , ¢ rate adjustment option lets’: a sad Rate Adjustment Option also.