‘DOLLARS AND SENSE

“USE ME or lose me,”

. Many of our beioved tax
breaks are singig that song:
“today: following the election
“of anew majority govern-:
ment in Canada.

The capital gains exemption,

: interest deduction on investmént
loans, business entertainment
deduction, lack of estate tax —
| any or all of those and other pro-
visions could disappear or shrink.

’ That could happen even before
“the end of this year if an ‘‘eco-
‘ ic statement’? changes the

Certainly the annual federal
; budget could, make signifi cant
-changes.

A revenue-hungry 1 new ‘govern-

ment likes to make. unpopular ° a!

oves early.in its reign:
So shift your financial planning
‘in high gear. If a substantial

DURING. THE Thanksgiving
veekend, Caulfeild’ Village Mall
hosted’: ‘record. crowds to the. first,

in nn exceeded’ expectations. by over
10% ,"'.: said :- Caulfeild «Business
Association
Willett

pokesman ‘Dori -
won $250 in goods and services.

inancial plans into high gear

amount of your money is involy-
ed, get expert advice.

And realize the ‘‘risk"’ a tax
break might survive intact — in
which case your actions and costs
might have been wasted,

This is why the tas aspect
should be only part of your deci-
sion. ; .
@ Capital gains exemption. Now
more than any other time in its
relatively short life, this exemption
is in danger of expiring.

Individuals may realize up to
$100,000 of capital gains on in-
vestments like land and revenue
property (with some restrictions)
and securities but pay no tax.

On certain small business shares
and farm property, the limit is
$500,000..:

As David Thompson, of
Thornsteinssons, tax lawyers, ©
points out: “An individual tax-
payer claiming the full $500,000
lifetime exemption currently saves
$175,000 to $190,000 in tax.’’

- He also notes you can often re-
alize (or ‘‘crystallize’’) a capital
gain and so claim the offsetting
capital gains exemption while it
still exists, yet keep the investment
in the family by transferring it to
a spouse, perhaps other family
members or a family company. ~

“This transaction can be
straightforward — or complex and
risky,’’ says Thompson.

’ Ifyou are thinking about selling

an asset in the near.future and will .

be able to claim the capital gains
exemption to offset most if not all
of your capital gain, move soon.
Always weigh the tax advantage
(possibly only a future benefit) .
against the costs of selling or

_ transferring an asset’ — legal and ©

accounting fees, brokerage fees,-

preciation Day draws. held at
Caulfeild: Village on. Saturday,

- Oct: 9: were Becky Bradshaw, of
“West Vancouver, who won $1,000

in merchant ‘goods: and services;
Doris: and George. Crooks, also of’
West Vancouver, who won $500 in

‘merchant goods and -services; and

North Burnaby’s Joan Senko, who

_Based“on the. success .of the

‘Well equipped with twin air bags,
“power windows, power locks,
‘power mirrors, ABS brakes, 4.
wheel discs, 5 speed manual
transmission. Reinforced passen-
ger cell with front & rear crumple

zones.

Park Shore Motors Lid.

1500 FELL AVE., NORTH. VAN

985-934

costs relating to the sale or trans-
fer of land or revenue property,
and possible taxes resulting from
items like a recapture of deprecia-
tion, ary cumulative net invest-
ment loss (CNIL) you might have
and the alternative minimum tax
(AMT). .

® Interest deduction. Ottawa
once tried to limit the ability to
deduct interest on money bor-
rowed for investment. Bowing to
pressure, it reversed the proposal.

So in most cases you may still
deduct your interest cost when you
invest even in something as simple
as the Canada Savings Bonds you
buy on the payroll savings plan.

(Note you may not deduct the
interest on money you borrow
now to contribute to a registered
retirement savings plan.)

So if you have been thinking of
borrowing to invest (in revenue
property, securities or a business,
for example), you might like to
make your move as soon as possi-

le.

If Ottawa does try again to limit
such interest deductibility, it might
well ‘‘grandfather’’ any loans al-
ready in place, allowing you to
continue to deduct those interest
costs. :
© Business and entertainment:
deduction. In most cases, you may
deduct only 80% of such ex-
penses, down from the original

- 100%,

About all you can do here is
schedule any major business’
entertaining sooner rather than
later.

‘ @ Estate tax and death duties.

Federal and provincial govern-
ments might argue over who

_ Should make this tax grab, but

either way, the beneficiaries of

event, the mall is planning to de-
velop a Christmas promotion in-
volving a special Santa’s Village

display to serve as a focal point ,

for activities slated for December,
including a Christmas food drive
for needy families and individual
Christmas tree displays created. by

_ each Caulfeild Village merchant. |

For. further information call

, ‘Willett at 926-1291.

THE
ULTIMATE
DRIVING

EXPERIENCE.

estates will lose.

Try to minimize the size of your
estate (which will also reduce pro-
bate fees and related expenses) by,
for example, holding assets in
joint names, having the
beneficiary own the life insurance
policy on the insured (so the wife
would own the life insurance on
the husband and vice versa),
perhaps using other life insurance
products which also allow a
beneficiary designation and simply
making gifts of assets.

While the spectre of higher
taxes should motivate you to study

on. / person (Plus

eosceogcgecgveseacooaooaoe € ov eeeeee eo @ oe

your various options as soon as
possible, don't be stampeded into
making moves that could, for ex-
ample, cost you more money now
than you might save in tax in
future, cause family problems or
leave you with no control over
your assets.

Mike Grenby is a North
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 Vancouver V7M 2H4,

eoevenveovecceeoeouov0ve0nveee0

interested in
IMPORTING/
EXPORTI

Explore profitable opportunities
resulting from EXPANDING
world markets.
International Trade Specialists.

Sat., Nov. 6th .

9:00 a.m. -
The’ Burnaby Villa

Register NOW CALL wee

525-1011

~

a

NG?

SEMINAR with -

4:00 p.m.

GST/tax deductible)

Federal Business Banque fédérale ,
o: Development Bank de développement

‘FINANCIAL
SEMINARS

THE TORONTO DOMINION BANK
an

TD TRUST

COMPANY

cordially invites you
to attend our upcoming

WILLS and ESTATE PLANNING

‘Protecting your family and loved ones against the
unexpected is too often overlooked, leading to
unnecessary burdens at a time when they may be
jeast prepared to handle them. If you have a
family that relies on you or If you have specific
concerns about the management of your. affairs,
we can offer you information and guidance that
wilil give you and your loved ones peace of mind.

DATE: NOVEMBER Ord, 1993
TIME: 7:60 PM TO 9:00 PM

LOCATION: The Lonsdale Quay Hotel,
123 Carrie Cates Court,
North Vancouver

There is no cost to attend, however
seating is limited. |
Reserve your seats today by calling
your local North Shore Branch of
The Toronto Dominion Bank

45th & Lonsdale, N. Van.
Westview Shopping Ctr., N.Van.
Edgemont Village, N.Van.

48th & Marine Dr., W.Van.

2040 S. Park Roval W. Van

981-5600
981-5665
$971-5650
926-3274
922-0158