As I’m sure you have probably heard the recently released budget contains a proposed “Tax Free Savings Account”. This proposed account will allow individuals to contribute up to $5000 annually into an account that can accumulate interest, capital gains and dividend tax free. As there is already a lot of information circulating regarding these new accounts I won’t try to rehash it all but instead provide you some links to sites that you may be interested in:
-How to Profit from a Tax Free Savings Account (click here)
-TFSA Bonanza (click here)
-The Tax-Free Savings Account (TFSA) – A Creative Financial Approach (click here)
-Federal Budget 2008: Tax Free Savings Account (click here)
-Benefits of Tax Free Savings Account (click here)
-Tax Free Savings Account (click here)
-Juggling the Mortgage, RRSP’s and TFSA’s (click here)
-Tax-Free Savings Account (click here)
Showing posts with label budget. Show all posts
Showing posts with label budget. Show all posts
Friday, February 29, 2008
Tuesday, March 20, 2007
Budget
Well big surprise… today I’m writing about the budget. In my opinion this budget had a lot of hype and very little substance. I (like many others) was expecting some announcement (or even direction) on were the government is going on capitals gains tax but...sigh...nothing...maybe next year… I’ve outlined the good and bad of the budget below.
The Bad
-No capital gains tax relief (despite the fact that this was a campaign promise). The exception to this is if you’re a small business owner, fisherman or farmer, who received an increase in the one time capital gains allowance from $500,000 to $750,000.
-No broad based tax cuts.
The Good
-If you make over $40,000 a year you’ll save $310 a year for each child (under 18).
-Eliminated the annual $4,000 RESP limit and raised the lifetime maximum to $50,000.
-Raised the maximum RESP grant limit (20% of annual contribution) from $400 to $500 annually
-Raised the age limit of RSP conversion from 69 to 71 (In my opinion this is a mixed blessing. Call me pessimistic but I think it’s the first step in increasing the receiving age of both CPP and/or OAS)
-If you buy a qualifying fuel-efficient car you could get a rebate of $1,000 to $2,000.
In my opinion none of the positive aspects of the budget even come close to being able to provide the same benefits as the promised, but not delivered relief from capital gains tax.
The Bad
-No capital gains tax relief (despite the fact that this was a campaign promise). The exception to this is if you’re a small business owner, fisherman or farmer, who received an increase in the one time capital gains allowance from $500,000 to $750,000.
-No broad based tax cuts.
The Good
-If you make over $40,000 a year you’ll save $310 a year for each child (under 18).
-Eliminated the annual $4,000 RESP limit and raised the lifetime maximum to $50,000.
-Raised the maximum RESP grant limit (20% of annual contribution) from $400 to $500 annually
-Raised the age limit of RSP conversion from 69 to 71 (In my opinion this is a mixed blessing. Call me pessimistic but I think it’s the first step in increasing the receiving age of both CPP and/or OAS)
-If you buy a qualifying fuel-efficient car you could get a rebate of $1,000 to $2,000.
In my opinion none of the positive aspects of the budget even come close to being able to provide the same benefits as the promised, but not delivered relief from capital gains tax.
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