Not sure how to make a savings plan? Read on…
Latest News
At 40, Peter makes $94,000. He owns two condos and wants a third closer to downtown Toronto. Is that the right move? + MORE Sep 19th
Being an avid investor throughout his life, Peter has long been able to take advantage of GTA’s hot housing market. Now, he wants advice on how best to invest his savings..... More »
Retirement taxes explained: Withholding, clawbacks, and other surprises + MORE Sep 17th
Many working-age Canadians wonder what the impact of retirement will be on their tax situation. As you save and build wealth, it is important to plan for the eventual tax treatment of your retirement assets and income as you approach that transition.
Taxation in Canada
When you are.... More »
Capital gains when selling property to family + MORE Mar 20th
Do I have to pay income tax if I inherited a property jointly with my sister and she bought me out for less than half the appraised value of the property?
—Johanna
Capital gains and transferring property between family
Asset sales between family members can be tricky to facilitate at a family leve.... More »
10 things you can do to save money and eliminate debt + MORE Nov 22nd
1. Set a goal
If you’re serious about saving you need to set a goal so you know what you’re saving for. Whether it’s a trip to Japan you hope to take in a few months or saving for retirement, having a very specific goal will help you stay motivated and on track.
2. Track your dollars
The .... More »
Should you take extra RRIF withdrawals to increase your estate? + MORE Nov 26th
Ask MoneySense
I have a RRIF that is worth approximately $250,000 at the moment. My two children are the beneficiaries. Obviously, I am hoping to somehow reduce any tax on this RRIF income when I die. Is my taking more out of the RRIF and paying the tax each year the best way to do this? Do you have.... More »
A quick and easy primer on capital gains tax
– moneysense.ca
Q: Can I save capital gains tax by putting money into a TFSA?
Do I have to pay capital gains tax if I sell one investment to buy another investment?
—M
A: I have had a couple of questions lately about selling one investment and buying another to avoid capital gains tax, M. Given the end of the year and the upcoming income tax season, I figure it’s a good time for a primer on capital gains tax.
Capital gains tax applies when you sell a taxable investment for a higher price than what you paid for it. There are some notable exceptions that I will address.
Understanding capital gains distributions »
When you buy a stock in a non-registered, taxable investment account, your cost for tax purposes is your original investment. It’s called your adjusted cost base or ACB. If you buy more shares in the future, that pushes up your cost for all of the shares.
If you sell some or all of the shares, the average cost for all the shares accumulated to that point is your cost for tax purposes…
No wiggle room: Many companies don’t keep enough cash
– canadianbusiness.com
NEW YORK _ When Rafael Romis started his website design company five years ago, he kept enough cash on hand to last about two weeks. That worked well until the company’s income taxes had to be paid.
“Even if you have a good amount in the bank, it’s not really your money till you pay your taxes,” says Romis, owner of Weberous Web Design. “At the end of the year, it disappeared and we started the new year completely strapped.”
Romis, whose company is located in Los Angeles, had to use personal savings to restore Weberous’ cash reserves.
“Cash is king” is an axiom business owners try to live by. If revenue isn’t coming in, and owners can’t get loans or investors, there’s no way to run day-to-day operations, buy inventory and equipment or hire workers. But many companies struggle to maintain a healthy cash flow and create a buffer for an event like a storm that keeps customers home.
Companies with cash problems often have overestimated how much revenue they’d have and underestimated expenses, says George Solomon, a George Washington University management professor…
“Even if you have a good amount in the bank, it’s not really your money till you pay your taxes,” says Romis, owner of Weberous Web Design. “At the end of the year, it disappeared and we started the new year completely strapped.”
Romis, whose company is located in Los Angeles, had to use personal savings to restore Weberous’ cash reserves.
“Cash is king” is an axiom business owners try to live by. If revenue isn’t coming in, and owners can’t get loans or investors, there’s no way to run day-to-day operations, buy inventory and equipment or hire workers. But many companies struggle to maintain a healthy cash flow and create a buffer for an event like a storm that keeps customers home.
Companies with cash problems often have overestimated how much revenue they’d have and underestimated expenses, says George Solomon, a George Washington University management professor…
Amazon agrees to pay $1.1M to Competition Bureau over pricing practices
– canadianbusiness.com
TTAWA _ Online retailer Amazon has agreed to pay $1.1 million in penalties and costs to the Competition Bureau to settle concerns raised over its pricing practices.
The bureau says the concerns related to the “list price” Amazon used to compare what it charged for an item with a “list price.”
The comparisons usually signalled “attractive savings” for consumers but were unsubstantiated by the company, the bureau said.
It said Amazon relied on its suppliers to provide the list prices without verifying that they were accurate.
The savings claims were used on its website, Amazon.ca; on its mobile application, in online advertisements and in emails that were sent to customers.
The regulator noted the retailer has made changes to the way it advertises list prices on its website.
The bureau’s investigation spanned from May 27, 2014 to May 1, 2016.
“Consumers are naturally attracted to claims that they will save money,” said John Pecman, the commissioner of competition at the bureau…
The bureau says the concerns related to the “list price” Amazon used to compare what it charged for an item with a “list price.”
The comparisons usually signalled “attractive savings” for consumers but were unsubstantiated by the company, the bureau said.
It said Amazon relied on its suppliers to provide the list prices without verifying that they were accurate.
The savings claims were used on its website, Amazon.ca; on its mobile application, in online advertisements and in emails that were sent to customers.
The regulator noted the retailer has made changes to the way it advertises list prices on its website.
The bureau’s investigation spanned from May 27, 2014 to May 1, 2016.
“Consumers are naturally attracted to claims that they will save money,” said John Pecman, the commissioner of competition at the bureau…
Toronto StarAmazon to pay $1M penalty over 'list price' savings claimsToronto StarA two-year investigation launched by the Competition Bureau in May 2014 looked into whether so-called “list price” claims on Amazon.ca were accurate. (Ted S. Warren / The Associated Press file photo). By Francine KopunBusiness reporter. Wed., Jan.Amazon changes pricing practices and pays $1.1 million to settle price advertising caseThe ProvinceAmazon to Pay Fine Related to Pricing Practices in CanadaWall Street JournalAmazon to Pay to Settle Canada Case About Misleading PricingFortuneTechaeris -Mondaq News Alerts (registration)all 11 news articles »
Your New Year Savings Plan
– ratesupermarket.ca
Over and over again, we keep hearing that Canadians just aren’t saving enough. According to reports, we owe too much, spend too much and don’t have a saving strategy in place to build a nest egg for retirement and emergencies.
So now that the expensive holiday season is over, what better time than the new year to put saving back on your radar? Presents and gift-giving are behind us, and now is the time to focus on goals of a new car or home, maybe even a vacation to escape the cold, an emergency fund or even retirement savings. Here are tips to take your savings strategy beyond a mere resolution and turn it into an actual game plan, making your goals a reality.
Pick a Number
Though not just any number, pick a number depending on your goals, and decide how much you’d like to save this year. As a ballpark, we should all be saving about 10 per cent of our incomes. So if you bring in $5,000 a month, that’s $500. When you get a bonus or inheritance or any extra money, sock away 10 per cent of that too! Even if you don’t have a regular income, calculate what you’ve made at the end of each month and put 10 per cent of that into your savings…
