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It’s probably time you switched banks—4 easy steps for Canadians + MORE Jun 28th
When you opened your first bank account, chances are it was with the same financial institution your parents used—because, why not? And given how loyal Canadians are to their banks, there’s a good chance you’re still banking with the same institution. In fact, 70% of Canadians held the sa.... More »
Laurentian Bank raises dividend Jun 1st
Laurentian Bank Financial Group said Friday it is raising its quarterly dividend as its second-quarter profit beat expectations..... More »
Red Hat stock up 47% after $34B US takeover by IBM Oct 29th
Shares of Red Hat skyrocketed 47 per cent at the opening of trading in New York Monday after IBM, in the biggest acquisition of its 100-year history, acquired the software company..... More »
Making sense of the markets this week: August 16 Aug 14th
Each week, Cut the Crap Investing founder Dale Roberts shares financial headlines and offers context for Canadian investors.
Come on, tax me. I’m Canadian.
Will taxes go up in Canada? How will we pay for the pandemic? There are many guesses and rumblings about upcoming tax hikes. In a previous p.... More »
Capital gains tax when renting out your former principal residence Jul 25th
Ask MoneySense
If a person moves to find work, does not sell their home, and rents in the new location for several years, is the original home subject to capital gains if they sell it? It has been rented out in the interim.
—Hugh
Do you pay capital gains when you rent out a former principal.... More »
Markets will hit bottom on Monday, says BMO’s Belski
– theglobeandmail.com
Bank’s chief investment strategist draws on history
How to retire well
– macleans.ca
Retirement is only the beginning of a life phase where you enjoy the freedom to make things happen on your own terms, at your own pace. That kind of living is enabled when you’ve planned for it. Here are some tips to get you started.
1. The earlier the better:
Start saving as early as you can, or work on catching up as soon as your finances allow, so you can maximize any unused RRSP contribution room.
2. Use the power of compounding:
Without a doubt, saving little by little adds up, thanks to time and compound growth. It’s also much easier to save when you have a pre-authorized contribution to a retirement plan.
3. Turn to tax-advantaged plans:
Whether you choose an RRSP (registered retirement savings plan) that defers tax or a TFSA (tax-free savings account) that earns tax free income, your savings will grow faster.
4. Aim to reduce debt:
If it’s hard to find the extra money to put toward your savings goals, focus on lowering your debt by paying down your mortgage or other loans…
There were high expectations headed into Thursday’s long-awaited announcement on how the federal government would overhaul the approval process for major energy projects in Canada. Ottawa says the new regulatory regime would help entice new investment, but the industry has many questions — and also doubts.
Capital gains tax when selling a rental property
– moneysense.ca
Q. For the moment it seems that capital gains are taxed at 50% of the value. My parents own a rental property. Would it make sense to “buy them out” now and pay the capital gains at 50% rather than wait for the inheritance and risk being taxed at 75% in the future? I assume that this is done at fair market value (FMV), but can I buy the property at less than FMV to save on capital gains tax now or are we forced to pay the 50% at FMV? I have no plans of selling the rental property in the future.
— Gary
A. Great question! First, let me just run through how capital gains tax works.
This tax is charged on all assets that appreciate in value over time. This includes property but also applies to stocks, artwork, even collectibles. The estate or the seller is responsible for paying the tax once the asset is disposed of and that can include the sale of the asset or the gifting or giving of the asset. Capital gains tax is calculated by taking half of the appreciated earnings and charging the asset-owners’ marginal tax rate…
Is the wild stock market ride fuelled by the machines?
– thestar.com
Algorithms suspected in the rapid meltdown in U.S. equity markets, but in Canada their role is less clear.
