Wednesday, March 6, 1991 - North Shore News - 19 BUSINESS Questions run the gamut at seminars EVERY TIME I finish a speaking tour, somebody wants to know, ‘*What kinds of financial questions are people buy the place. . 4 “I have not worked outside the money only to a pension plan reg- come for the spousal rollover. asking these days?”’ Over the past three weeks | have spoken to some 6,000 people at 15 money seminars. Their ques- tions covered a wide variety of topics. °*Should we contribute to RRSPs or pay off the mortgage?** (if your taxable income is more than $29,000 and the money will earn a good rate of return in the RRSP over a long term, go for the RRSP — and apply the tax savings to reduce your mortgage.) e What's the best way for my father to liquidate his $1.2 million business, then put the funds into my hands?’* (He should try to sell the shares rather than the assets to benefit from the $500,000 capital gains exemption, but consider both cumulative net investment loss and alternative minimum tax implications; there are no gift taxes when he gives you the money.) e “I’m a single woman with not enough pension and investment income to live on when I retire, though I do own my home. Any suggestions?’’ (Could you rent out part of your home? Move to a less expensive area —- and again, have tenants? How about a_ self- employed sideline now and/or after you retire? Would you con-— sider a home equity plan?) °*“How should we invest $25,060/$100,0000/$500,0002"" (You have four main choices: guaranteed instruments, the stock market, revenue property and your own business. Choose what suits you, then come back for ad- vice on the most effective ways to proceed.) Questions from readers also cover various subjects: “The capital gains exemption survived this latest budget. Do you think it’s now safe?” — B.M. No tax break ever leads a charmed life. If selling or gifting stocks, property or other invest- ments makes sense, it’s still a good idea to take advantage of the capital gains exemption. And if you have a business: “A taxpayer with accrued gains on shares of the company can apply several techniques to use the capi- tal gains exemtion without selling the shares or Josing control of the company,’’ says Michael Byrne, of Walsh King, chartered accoun- tants, adding this would also reduce the gain on any future sale. “I'm 68, my wife 65. I have split my CPP with her and she also has OAS and investment in- come. f have always claimed her on my tax return; does she now have to file her own?’’ — S.M. She needs to file a return only if she owes tax or is claiming a tax refund (whether from tax withheld at source or through one of the refundable tax credits). Make sure she creates enough private pension income to entitle her to the $1,000 pension income amount. Even if she pays no tax, this and the other transferable amounts (age, tuition, education and disability) may be transferred to you. You might also be able to save tax by declaring her dividend income. “*We live on 2.5 acres which could be developed for townhouses. Should we put our place in joint names with our three adult children to minimize taxes when we sell?” — A.C. If you can show your principal residence included use of all the property (as opposed to use of on- ly a smail part), you should have a case for claiming all your profit as a tax-free capital gain when you sell. Changing legal ownership has no bearing on the tax conse- quences. Revenue Canada simply Michael Grenby DOLLARS AND SENSE asks whose money was used to RRSP contribution?"’? — C.E. istered in Canada. And you may No, you may transfer RRSP not use your French pension in- home since our two children were born. I have coatinued to declare the investment income from our joint savings, because I pay less tax than my husband would. Is that legal?"* — S.L. Your case illustrates why the spouse in the lower tax bracket should always do the saving and investing. And as long as you can trace back the source of the capi- tal to money you earned, inherited or won, you can declare the in- vestment income. “f can buy back some pension - for a period when I worked in France, before coming to Canada. Can I transfer funds from my RRSP to make the buyback in be- fore-tax dollars? And when I get the French pension, can I use this money for tke $6,000 spousal 1YEAR TERM DEPOSITS 983-3773 Lonsdale Quay Next to Seabus Norta Vancouver 24 Hr. Quote Line 682-4636 E Citizens Trust | MEMBER CANADA DEPOSIT INSURANCE CORPORATION Evening with International image Consultant Robert is a straight-forward, electrifying speaker who has appeared on numerous national talk shows. He is the author of the best-selling book Dressing to Win: How to Have More Money, Romance and Power in Your Life. During the seminar, Robert will do makeovers on audience volunteers. He will also teach the audience exactly how they can give themselves a new look. WHARE WHERE: Call Nina A Three Hour Evening Seminar with Robert Panté PAN PACIFIC HOTEL Crystal Ballrcom 999 Canada Place, Vancouver Saturday, March 23, 1991 6:00 pm Registration, No-host bar 7:00 pm SHARP: Seminar begins PRICE: $55 PER PERSON includes a $50 gift certificate from Heatheringtons/Emporio a $25 gift certificate from Jeda Shoes and a gift package from A VENIR Sponsored by: emporis” + IR HEATHERINGTONS i edo i Zu fie ants C casei anes ROBERT PANTE TICKET INFORMATION For information and pre-registration Rhodes 731-1119 Tickets available at HEATHERINGTONS Park Royal South EMPORIO MEN’S CLUB 805 West Broadway, Vancouver JEDA SHOES Park Royal South GREAT DOOR PRIZES Signature foot. _ By mail to: 2008 Park Royal South — West Vancouver, V7T 2W4 [JAN EVENING WITH PANTE $55 €:, —~ Saturday, March 23rd, 1991 ! Name — Company Address City Pst Code Phone Cheque in the amount of see enclosed. ' (personalized cheques only, payable to “An Evening with Panté’’) or VISA / MIC No. Expiry date