38 -— Wednesday, March 4, 1992 — North Shore News BUSINESS How the latest federal budget will affect you NOW THE initial rush of information about the latest federal budget has slowed, let’s take a closer look at how some of the proposals could affect your personal finances. @ Home Buyers’ Plan. You may borrow up to $20,000 from your registered retirement savings plan by March 1, 1993, to buy a home. You pay no interest on this loan. If you repay the money (over 15 years starting Dec. 31, 1994), there are no tax consequences. If you don’t make a_ scheduled repayment, you will pay tax on ‘that amount. So a couple could take up to $40,000 from their RRSPs. And if several individuals pooled resources to buy a home, each could presumably withdraw up to $20,600. Many financial institutions will allow you to cash an RRSP GIC prior to maturity to benefit from the Home Buyers’ Plan.. TIP: Calculate the costs of buy- ing and running a home, including the RRSP repayment or the tax cost if you don’t make the repaymient. Make sure you can af- ford the home, especially if you count on two incomes now but will have oniy one income in the _ future. . TEP: Consider alternative fi- .. nancing. ‘At least’ one financial in- : stitution .offers a “‘partaership’’ ‘arrangement between: taking out a mortgage and using your RRSP — without actually withdrawing your money. Might a family member or outside investor provide funds for . Dance kicks off annual ‘Duck Race THE: BALLROOM at North Van-_ ‘couver’s International Plaza will ‘: be rockin’ this Friday as the Great 1992 Duck Dance gets under way. The evening, to. premote this year *s Great Capilano Duck Race, -is being organized by the board of “North Shore Crisis Services Socie- ty, which administers Emily Mur- phy House, .the North . Shore’s transition house for battered women and their children. The organizing committee has been hard at work to make this year’s dance a success. Cocktails will be served at 6 p.m. followed by a buffet dinner (beginning at 7 p.m.) and dance featuring the band, Public i. Tickets are $35 each. Proceeds of the evening will go to Emily Murphy House, For information phon: 986- 8803. BUD Ifyou have questions about the Federal Budget or want printed information, call toll-free. Michael Grenby DOLLARS AND SENSE ~ a home so again you can leave your RRSP untouched? @ Capital gains. The $100,000/ $500,000 exemption survived — but not intact. The profit you make on in- vestment property bought after February this year will no longer qualify for.the exemption. And the longer you hold property al- ready owned on Feb. 29, the less of an exemption you will be able to claim. This new rule also ap- plies to, for example, a mutual fund that invests in property. The calculation involves pro- rating, rather than a valuation day. Let’s say you have owned land or revenue property for two years. If you sell now, almost all the capital gain wil! qualify for the exemption. But if you sell a year from now, then only two-thirds of your prof- it will qualify. Sell it in two years and only one-half the profit will qualify. (Note that your principal residence, property used in a business and a qualifying farm escape the new rule.) @ The RRSP. The 1993 contribu- tion maximum will remain at 1992’s limit of $12,500, instead of rising to $13,500. Then the $1,000-a-year increase resumes. MANAGING PEOPLS — KEY TO SURVIVAL IN THE 19908 BUSINESS SUCCESS may be more dependent on your staff than . upon anything else. For managers and entrepreneurs to succeed, it is essential to develop NEW IDEAS and TECHNIQUES for HUMAN RESOURCE MANAGEMENT. This means: 1” How to find the right people - (@ How to develop them [“ How to compensate them (2 How to keep them And.... 2 How to build a PROFIT TEAM! HERE’S WHAT WE OFFER YOU: A Human Resource Management Program for businesses in North and West Vancouver which delivers 80 hours of practical hands-on training and counselling with: 2 Seminars and Workshops e Frivaie Business Counselling Sessions * Practical Human Resource Tocls and Materials For raore information call: FBDB NORTH VANCOUVER: 666-7703 Federal Eusiness Deaf or hearing impaired call: 1-800-267-6650 ¢rry/rip) +e Department of Finance = Ministére des Finances Banque fédérale Development Bank de développement The increase in limits on registered pension plans will aisc be delayed. @ Children. Starting next year, single parents and one-earner couples with incomes up to $60,000 will receive more child benefits while two-carner families with incomes above $50,000 will receive less. The child tax benefit starts at $85 a month — non- taxable. @ The RRIF. Starting next year, all registered retirement income funds can run for life — instead of terminating at your (or your spouse’s) age 90. A higher mini- mum payout formula applies from age 71 through 77 on RRIFs taken out after this year. TIP: Consider converting RRSPs to RRIFs by year-end if keeping more money growing tax-free in your RRIF would be beneficial. @ The disabled. If you are one of the 230,000 Canadians receiving CPP (or QPP) disability pensions, you may make a reguiar RRSP contribution for the 1992 tax year based on the CPP disability pen- sion — now considered ‘‘earned income’’ — you received in 1991. Also in 1992, if you attend a post-secondary education institu- tion on a part-time basis, you will be able to claim the education credit. And mere expenses will be cligible for the medical expense credit. @ Education. Effective this year, the tax credit rises to $80 a month from $60, and the transferable amount to $680 a year from $600. @ Common-iaw equals married. Starting in the 1991 tax year, common-law couples (more than 775,000) will be subject to the same tax rules as married couples. @ Less interest. Starting next year, Ottawa will start to pay in- terest on refunds only 45 days after the fater of (a) the filing deadline and (b) when you actual- ly file. Mike’ Grenby Shore-based_ columnist. and _in- dependent financial adviser who works with individuals; he will . answer your questions as space allows — write to him c/o The: North Shore News, 1139 Lonsdale Ave., North Van. ° V7M 2H4. SUPERB REAL ESTATE - INVESTMENT WITH SUBSTANTIAL. TAX BENEFITS FOR 1992" © 22~-three bedroom strata title townhomes. © Under construction — completion April 1992. ¢ Great Location — Burnaby, 2 blocks from Edmonds SkyTrain and BC Hydro’s new head office. ° Purchase a quality town- house with as little as $1,000 down, approximately $510/ month to qualified purchasers. ¢ Five year rental guarantee — Covers: *First mortgage, main- tenance and management fees - Developer guarantees no negative cash flow. Excellent Tax Benefits Over $20,000 for'32.. Over $62,000 for first 5 years. © Features: security parking gas - fireplaces + 6 quality appliances - mini-blinds throw hout . + marble and tile fi + European designer cabinets + large private terraces. © Enjoy a ‘No-Hassle’ investment cpportunity. * Professionally managed. For more information, Call Jacqueline. Ashworth ‘Phone: 922-1622 Pager: 650-4750 : MACLEAN MANAGEMENT Lip. is a North - |