DOLLARS AND SENSE ©

AS WE approach the May 2.
‘fling deadline (changed
because the usual April 30 ©
falls oui Saturday), are you
overwhelmed by:all the
“information on how.to save

Let's eit through’ some of that.’
verbiage ; and focus on those tax. tips
and strategies which Evelyn Jacks

‘ considers the. most important of the’.
160 pointers’ in her new book,

‘acks’ Tax Tips (McGraw-Hill,
$12.95). 1 spoke to her as she toured
Cunada to promote, that book plus,
her annual Jacks, on Tax...

income, she ‘should file a tax return
lo ‘create RRSP contribution’ -

: -tax/she.can put money into:
her RRSP, deduct the contribution |
ind reduce — or even wipe out
: her tax bill,

Bl Use your.tax refund to, nake this. :

‘RRSP contribution,‘ or to pay
ff an‘expensive-debt and ‘then put
those former payments into an:

: ‘Go. back ‘as far as 1985, to recap:
‘tire previously, overpaid taxes."
Perhaps you didn’t claim your: safe:

leposit box rental as a carrying |.
harge. Many people paid the alter=.
ative minimum tax (AMT) when
hey, madea large severance pay
‘ollover to an 1 RRSP. but then .

> Phil Keller
Chief Executive Officer

forgot to carry forward this umount
to give them a chance to claim back
the money.

@ The fairness package gives
Revenue Canada the power to
waive penalties and interest in hard-
ship cases. All you have ta do is
write a letter,

m& A common-law spouse now is a
spouse for tax purposes, But, for
example, if you have a spat and
move out for 90 days or more, you
won’t be considered common-law
for that year (unless you have chil-
dren in which case simply being
together at year-end qualifies you as

. coramon-law). “Spouses” may con-
- tribute to a spousal RRSP, or claim

the spousal amount. However, if the

two of you aren’t spouses, then you

may each have a principal resi-

; dence.

9 Give a Canada Savings Bond
(term deposit, etc.) to a child (under

18) and you must report the interest

for tax purposes. But give the child
a growth mutual fund and the child
will report (and, when income is
low, probably not pay tax on) any
capital gains. Give or lend money to
a spouse for business purposes and
there wiil be no attribution back to

* you, the way there. is when such
money is put into other invest-
ments.”

Ki Once they turn 18, ‘students may
elect to make Canada Pension Plan
contributions based on tips, for
example; they.may also over-con-

., tribute to an RRSP to benefit from
‘long-term tax-free compounding.

_A student may transfer up to

"$4,000 of unnéeded education and

tuition amounts to‘a supporting par

, ent (spouse, grandparent). -

Most, teachers going to summer

.school may.claim the $80/month.

education amount,

“If you're 19 or older, or married
OF a-parent, always file a tax return
‘(even if you have no taxable
. income) to claim the GST credit.

&@ Rather than going after-a raise

“(which your employer mightn’t be

able to afford and you don’t want to
pay tax on); explore non-iaxable ©

benefits like merchandise ‘discounts,
* on-the-job clothing, counselling,
subsidized meals or transportation

to and from work. Even taxable:

‘benefits can pay off: your.cost will

be only.the income tax.on the value
of these benefits. :

Tuesday, April 26, 1994

~~, 6:30 p.m. Registration’

7:00 p.m. Meeting |

Centennial Theatre Centre
2300 Lonsdale Avenue
‘North Vancouver —

If you have any questions regarding the
», Meeting, plense call YSO-41321, Extension 303.

: Plan to attend.
“Ask questions. Suggest ideas.
‘Meet your Directors and staff. .

. Get involved. See you there!

fA Develop a self-employed busi-
ness to claim a variety of tax deduc-
tions — provided you hive a rea-
souable expectation of profit.

@ Wone spouse has low income,
the other spouse might be able to
declare the low-income spouse's
Canadian dividends, lowering, the
couple's $ total tax bill.

@ Try to generate some income
from vacant land so you.can write
off expenses.

ff you have earned income, you
may suill contribute toa younger
spouse's RRSP even if you are over
71,

ie) Split CPP and investment
_ income (and contribute to an RRSP ©
if you can) to reduce the clawback

‘Tax savings
for 1993

You can save tax if you:

involve all family members;
%% 20 back to 1985 to claim breaks
you missed;
a. ask for. benefits instead of a a
raise.

of both the ald age pension and the
aye amount, Otherwise, make sure
you have extra money next April to
pay the higher taxes.

& Understand the new quarterly
instalment rules, “1 once saw a
senior who had overpaid instal-

_ mhents by $80,000 because her

e™estment income had dropped so
much,” said Jacks.

Mike Grenhy is a North Shore-
based columnist and independent
financial adviser who works with
individuals; he will answer your
questions in this columa as space
allows ---write to him clo 24-44 |
Haywood Ave, West Vancouver
V7V EYL

oe SPECIALISTS
“LeB.c- BCAA. ARA.

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