lore {T’S MAILBAG time again. I'm happy 1o get your letters and although I cannot reply individually | do answer as many questions as possible through my column. “Pm 24 and want to start an RRSP. I'm often transferred to other cities in Canada so can I move my RRSP with me? Should I deal only with companies that have branches across the country? Will I be charged a fee to transfer an RRSP from one company to another?"' — B.D. You can have an RRSP with any. company and conduct your _ business by mail, although dealing with a national company might be a ‘little more convenient. More “companies are starting to charge * fees to wansfer an RRSP. Sometimes’ you can bargain away. any existing or possible future transfer charges — but do this when you open the RRSP ac- count and get a letter to confirm your arrangement. “I have just been iaid off and hed my severance pay transferred directly to my RRSP. How does this. affect. my maximum RRSP contribution for 19937" — E.L. There is no effect. You may still ‘muke your normal RRSP .con- tributions: (a) 18% of your 1992 earned income up to $12,500, ‘minus any pension adjustment . (PA), to your own or a spousal plan, plus (b) up ‘to $6,000 of regular pension income {but_not . CPP or OAS) you receive in 1993 to a spousal plan: Note that RRSP contributions ; are considered: ‘tadd-back’’ items ..in’ the alternative’ minimum tax _ MT) calculation. ° Once these "FEDERAL FUNDING © Music West gets HE FEDERAL. government has, awarded . $498,132: in funding to ‘the “Pacific. Music Industry , Association and the Music West "Group Inc., to help stage Music : West 1993, an international music industry trade‘show. | Total project costs are estimated at $1.2 million. “Western . Canadian .” musicians who’ produce * copyright- based - products willbe ‘able ‘to make” _contact with ‘international manu- ‘facturers and record label repre- “, sentatives,” ‘said Capilano-Howe “Sound .MP* Mary Collins, the Minister of Western Economic Diversification. ; The’ event, to be held May 7 to -9° at the’ Vancouver. Trade and. bring - © Convention * Centre, _ will -, together: performers, songwriters, manufacturers, music publishers, “. fecord producers, buyers for re-- .. cord labels and distribution com- panies. It will also combine an equip- ‘ment exhibition including a music ‘ education day and industry, con- ference | including demo critique *sessions. The trade show will feature live - performances by unsigned alent, professional musicians who have developed a local market, but who have not yet. negotiated a re- cording. contract with sound re- cording companies for national “and international markets. . The conference program will address issues of interest in the global marketplace as well those of specific concerns to Ca- ' . madians,”’ said producers Maureen - Jack and Laurie Mercer. ' “Weare bringing in panelists - with international experience and “presenting ‘advanced music business and songwriting semi- Nars. , ; “New ‘developments for '93 in- -clude.. hosting .an international as” ‘ language using Michael DOLLARS AND SENSE add-back items exceed $40,000, you might have to pay the AMT. Ask your local tax office for the AMT calculation form. “How much can a person give _to grandchildren each year rather than leaving a lump sum in a will? Can you avoid death duties by making such gifts?’ — J.H. At. present, there are no death or succession duties in Canada (although depending on what assets are left and who inherits them, there can be income tax). Also, there is no gift tax. So you can .give money in any amount’ as often as you. like. However, it you give investments dike stocks or property, there could be income tax. “BUSINESS BRIEFS | manager’ s forum and positioning Music West as the Pacific Rim music event connecting the Asian music industry to the North ‘American and . European sound recording industry.” The Pacific Music Industry Association represents the industry as a whole in B.C. and includes representatives of organizations such as the American Federation of Musicians, Pacific Song Writers’ Association, B.C. Coun- try Music Association and the Canadian Music’ Publishers’ Association. Membership rose from 70 members in 1991 to 350 in 1992. HYDRO NEWS BC HYDRO customers in a major portion of the Lower Mainland, including the North Shore, and who speak Mandarin, Hindi or French, will now be able to obtain account information in their.own touch-tone tgiv- phones. Hydro’s Hotline service was ed funding -tomer’s ‘pointed. Ron McIntyre as SUSINESS rms charging for Also, it you give money to a child in the family under age 18, you are supposed to declare the interest and dividends carned by that money until the child turns 18. . “We've heen giving compound Canada Savings Bonds to our children for several years but have outy just realized we should be declaring the interest ourselves. How do we find out how much interest to report and can we report if all on our 1992 tax retumm?’’ — A.W. The 1992 tax return contains form Tl CSB with the informa- tion you need. Also, the Bank of Canada (which has offices in ma- jor cities) or the financial institu- tion where you bought the bonds should be able to help with the calculations. Technically, you are supposed to report only one: year's interest for 1992 and ask Revenue Canada to reassess your past returns — ei- ther annually or tri-annually from 1986 through 1991. “We bought a duplex in 1980 for $73,000 and lived there until! July 1992, when we sold the place for $126,000. We rented out one side, barely making a profit but at least never having a foss. Do we have to declare any of the capital gain?’ — G.G. Yes, you’ll have to declare the profit you made on the rental — $26,500 (half the total profit). If you each put in the same amount of money to buy and run the property, then each of you will declare $13,250 (half the $26,500). Assuming you haven’t used up gains exemption, previously available only to English-speaking customers. - In addition, the existing system has been expanded to record payments made directly to a cus- account at non-Hydro locations. The service will- initially - be available only in English in order to determine usage. . Three other languages can be added in the future as demand is determined. Access’ to the system is by touch-tone telephones only and customers call the . telephone number shown on their individual " pills. Hotline service is available in an area extending from Lions Bay to Maple Ridge and Langley. By following a series’ of re- corded instructions, Hydro cus- tomers can also obtain: ® a summary of their account, including balance, payments and the fast bill issued; © a history of the account; @ meter reading information; . ® equal payment: plan informa- tion; © a listing of Hydro offices; - © information on how to start, stop or transfer service. Installed at a cost of less than $20,000, the new Hotline features are designed. to free up inquiry personnel so they can deal with more complicated inatters. BUSINESS “APPOINTMENT NORTH VANCOUVER-based PenMagic Software Inc. has ap- the company’s new vice-president of sales and marketing. McIntyre has extensive experi- ence in. the Canadian and U.S. software markets, as well as ex- pertise in developing new markets. PenMagic is on the leading edge of developing ‘and marketing See Penmagic page 40 transfers divide (a) the number of months you owned the property through February 1992, by (b) the total months you owned the property. The answer tetls you what por- tion of your profit will qualify for the capital gains exemption. You will have to pay tax on 75% of the amount that doesa’t qualify. “Tam interzsted in’ making charitable dowations and paying my fair share of income tax. What are the rules?’’ — K.K, On the first $250 you receive a federal tax credit of 17%, which translates into a tax saving of 26% to 27% after you calculate the provincial credit. On every a 2... Bring this Coupon into the designated branch Use this Prenor Trust “Investment Bonus” Coupon and — receive up to an additional /2% Bonus . . interest on your Term Deposit or GIC investments. dollar above $250 claimed in the year, you get a federal credit of 29%, which produces a total tax saving of 45% to 50%. So mak- ing, or at least claiming, several years' donations in one year saves you more tax than mak- ing/claiming donations annually. Mike Grenby is a North Shore-based columnise 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 214. ‘ oe pric v. en Includes: — # 6 months of free airtime %* No contracts .- % No deposit #% No credit checks of Prenor Trust by April 30, 1993 and you will fl receive the following bonuses on investments: a ° V2% Bonus for 30 to 364 day Term Degosits; e 1/4% Bonus for 55 month GIC, PRENOR TRUST — This coupon is valid only at the Prenor Trust branch located at: 1452 LONSDALE AVE. NORTH VANCOUVER BRITISH COLUMBIA V7 231 (604) 980-7440 May not be combined with any other offer.