6 tips to steer clear of an income tax audit: Mayers + MORE Mar 3rd

Best Actress winner Helen Hunt and Best Actor winner Jack Nicholson of “As Good As It Gets” on March 23, 1998 at the 70th Annual Academy Awards at the Shrine Auditorium in Los Angeles. (HECTOR MATA/AFP/Getty Images)
Which past Oscar-nominated movie title best describes your retirement readiness? Investment dealer Edward Jones and Leger Marketing put the question to Canadians and found that while the majority are actively saving for retirement, only 30% will be able to retire comfortably. Take a look how Canadians responded:
Million Dollar Baby - I’m set for retirement - 8%
Bound for Glory – I’m on my way to retiring comfortably - 22%
As Good as It Gets – I’m saving as much as I can, but it will not be enough to retire - 33%
Gone with the Wind – I’m not saving for retirement - 20%
(The remaining 17% said they did not know which movie title best described their retirement savings.)
“With various expenditures vying for our attention, it can be challenging to factor in retirement savings…

As the Registered Retirement Savings Plan contribution deadline looms on March 3, it’s apparent that Canada is a nation of RRSP procrastinators.
According to a poll released by CIBC, one third of Canadians (this writer included) have left their planned contributions for the 2013 tax year to the last minute.
“Our poll shows that once again, the last few days before the contribution deadline are going to be busy, as millions of Canadians make their final decisions about investing in their RRSPs,” says Christina Kramer, executive vice president of Retail and Business Banking at CIBC.
Of those hemming and hawing in the lead up to the deadline, 16 per cent have contributed but plan to funnel more into their RRSPs while 15 per cent haven’t yet contributed anything for the 2013 tax year.
Avoid The Last Minute Cash Crunch
Turns out, the biggest hurdle for RRSP contribution is coming up with the cash – many savers are failing to plan ahead for their contribution. “Some Canadians find it difficult to come up with a lump sum for their RRSP, underscoring the importance of creating a budget and a regular savings plan for the year ahead to avoid the last-minute crunch,” says Kramer…

OTTAWA - Canada Mortgage and Housing Corp. is raising the rates it charges to insure mortgage loans.
The federal agency said Friday the new premiums will go into effect May 1 and apply to new mortgages, not those already insured.
How much the rates will increase depends on how much a prospective home buyer is putting down on their purchase.
Financial institutions generally require mortgage loan insurance for buyers making a down payment of less than 20 per cent.
The insurance protects the lenders from defaults but the costs usually are borne by the borrowers.
Buyers putting down a 10 per cent downpayment will see premiums rise to 2.4 per cent from two per cent; those with a 15 per cent down payment will see an increase to 1.8 per cent from 1.75 per cent.
The increases could add thousands to the overall cost of buying a home for those borrowing large amounts and putting little down, but CMHC estimated the increase will add about $5 per month to an average buyer’s mortgage payments…

Tax evasion can be costly if the Canada Revenue Agency comes calling with an audit, so avoid tax-dodging temptation.

Tax evasion can be costly if the Canada Revenue Agency comes calling with an audit, so avoid tax-dodging temptation.