The best RRSP investments 2022 + MORE Jun 26th

I invest in crypto as a business. What records do I need to keep for my income taxes?—Marc

There are a few layers to this question, Marc, so I’ll break down the answer into three parts: business income vs. capital gains, what records the Canada Revenue Agency (CRA) might ask for, and a few tips for tax time. 

1. Are your crypto earnings business income or capital gains?

Here’s why the distinction matters: In Canada, business income and capital gains are taxed differently: 100% of business income is taxable, while only 50% of capital gains are taxable. 

If you invest in bitcoin, ethereum or other cryptocurrencies, you may be wondering which activities are taxable. Buying and holding crypto isn’t a taxable event, nor is transferring crypto between two wallets you hold. But if you cash it out, sell it, spend it (including buying a different crypto) or give it away, that’s taxable. 

To determine if your crypto earnings should be taxed as business income or capital gains, the CRA looks at different aspects of your trading activity, such as:

How frequently you buy and sell cryptoYour intentions when buying crypto How long you hold on to crypto assetsThe amount of time you devote to crypto trading activitiesAny business-related activities, such as preparing a business plan or promoting a service

“Business activities normally involve some regularity or a repetitive process over time…

Money expert Jessica Moorhouse recommends placing emergency funds in a separate savings account.

Money expert Jessica Moorhouse recommends placing emergency funds in a separate savings account.

A registered retirement savings plan (RRSP) is an investment that is registered with the Canadian federal government. RRSPs are often described as being “tax-advantaged.” That means you don’t pay income tax on the amount you are contributing to an RRSP, in the year you earn that contribution. However, you will have to pay income tax when you withdraw money during your retirement. The advantage is built on the assumption that your income is higher now than it will be in retirement. If you plan things right, you will be in a lower tax bracket in retirement, meaning that you pay less tax on your withdrawals than you saved initially by stashing your money inside an RRSP. 

You can open an RRSP and contribute income up until the year you turn 71, at which point it has to become a registered retirement income fund (RRIF) and you must begin to withdraw the money as taxable income. Read on to learn about the best RRSP accounts in Canada.

The best RRSP accounts in Canada for 2022

Best RRSP savings account: EQ Bank RSP Savings Account* (1…

There’s more to college and university than just classes. Navigating the costs that come with a post-secondary program is just as much a learning experience as Psych 101—for both students, and the adults in their lives. The best time to start—both saving for school, and learning how to handle money—is when kids are still young. That’s why our Student Money Guide begins with the basics: How to help kids understand the value of money; set them up with their first bank accounts; and all about registered education savings plans (RESPs).

When kids are grown and ready to live on their own, check out the sections on applying for student loans, scholarships and bursaries; covering tuition costs, handling housing expenses; and more. 

What do you need help with today? Click on any topic in the list below to jump to the full information in this guide:

For parents and other adults:

The best ways to help kids financially
How to set kids, teenagers and young adults up for success with money
How to get kids in the habit of saving
Strategies for teaching kids about money
What is an RESP?
How to withdraw from an RESP
How to make RESP withdrawals for kids with different educational paths
How to save money on student housing costs

For students:

Everything you need to know about financial aid in Canada
How to apply for OSAP
How to save money while you’re in school
The best credit cards for students
The best bank accounts for students
Is owning a car worth it for students?
How to pay off your student loans

The best ways to help kids financially

Regardless of whether your kids are fast approaching their post-secondary schooling or just graduating from kindergarten, the sooner you and your child start saving for education costs, the better…