HomeMy WebLinkAboutThe Citizen, 2008-02-14, Page 7THE CITIZEN, THURSDAY, FEBRUARY 14, 2008. PAGE 7.(NC)—When it comes to taxes,
Canadians just don’t make the grade.
This, according to the recent
Mackenzie Financial Great
Canadian Tax Test, which found that
most people could correctly answer
only three of 10 common tax
questions.
Canadians scored higher on a
similar test in 2005, but there have
been several changes to Canadian
tax law since then. People obviously
aren’t keeping up.
“People don’t wear outdated
fashions or rely on outdated medical
techniques, so why would they live
with outdated tax planning?” said
Sandy Cardy, senior vice-president
of tax and estate planning,
Mackenzie Financial.
“Since we conducted our last tax
test, there have been many tax
changes that can help put money
back in our pockets. Canadians
should speak to a financial adviser to
make sure they are taking full
advantage of the new deductions and
credits.”
Take the Mackenzie Financial
Great Canadian Tax Test:
1. “You are only allowed to
contribute to a Registered
Retirement Saving Plan (RRSP) up
to the age of 69.”
2. “The limit to what I can
contribute to my child’s Registered
Education Savings Plan (RESP)
each year is $4,000.”
3. “A 65-year-old may allocate up
to 50 per cent of the income from a
Registered Retirement Income
Fund (RRIF) to their spouse or
common law partner.”
4. “If a parent transfers an asset
into joint ownership with an adult
child, future income taxes are split
50/50.”
5. “You can pay for an adult child
to take care of younger children in
your household and deduct the cost
of child care expenses.”
6. “Net capital losses realized in a
given year may be carried back to
any of the three preceding tax
years.”
7. “You can reap the benefits of a
donation to a charity on your 2007
tax return provided the donation is
made by March 1, 2008.”
8. “If I redeem or sell units of my
non-registered mutual fund in
2007, I will have to include 50 per
cent of any realized gain in my
2007 tax return.”
9. “If I donate publicly-listed
equities such as BCE shares to
charity, I can avoid paying tax on
the capital gain no matter how long
I’ve held them.”
10. “I can claim a tax credit for
2007 of up to $500 for each child
under 16, who was registered in a
qualified physical activity.”
For more information visit
www.mackenziefinancial.com
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Most fail the ‘great Canadian tax test’
(NC)—So you’ve bitten the bullet
and you’re moving in together. That
means you’re about to share a few of
the possessions you’ve worked hard
to obtain. How does this life change
affect your insurance needs?
Antoine Landry, an insurance
expert with TD Insurance, offers the
following tips for partners taking
that first leap together:
Look for discounts:
• Homes and vehicles can go hand-
in-hand when it comes to insurance
policies. If you consolidate both
your home and auto insurance with
one provider, you will likely receive
a discounted rate.
• If you and your partner plan to
keep separate vehicles, moving both
under one insurance provider can
often lead to a multi-vehicle
discount.
There is insurance coverage for
every type of home:
• Home insurance might not be top
of mind for everyone, especially if
you’ve been renting. If you haven’t
had any type of property insurance
in the past, now is a good time to
protect the belongings of both
individuals and any dependents.
Whether you’re a home owner, a
condo owner, or you’re still renting
together, you can find the right
coverage for your needs.
• You can get specific coverage for
special items: now that you’re a
couple you might be purchasing
more expensive or precious items for
your home. Jewelry and collectables
can be listed on your policy to
provide special coverage limits
above and beyond the typical
maximum amount of your policy.
Keep your records together:
• Now that there are two of you,
whether your insurance is joint or
separate, it’s important to be
organized – keep good records in
one place in case you need to make a
claim. File receipts and serial
numbers, and photographs or
videotapes of items to help identify
them if they go missing or are
damaged. A fireproof box or safety
deposit box is the best place to keep
items.
(NC)—Overspending is a
problem for a surprising number of
Canadians, especially those under
50 years of age, according to a
recent test commissioned by
Mackenzie Investments.
The test, which asked a series of
10 questions to gauge spending
behavior found that 56 per cent of
Canadians under 50 years of age
overspend, or demonstrate troubling
tendencies to do so (including 62
per cent of 25 to 34 year olds).
Some of the test questions showed
that 54 per cent of Canadians have
gone shopping for the sole purpose
of making themselves feel better.
And half admit they regularly buy
things on the spur of the moment –
behaviour that can lead to more
spending and less saving.
“Younger Canadians tend to
spend first and ask questions later,”
says Dr. Sunghwan Yi, a University
of Guelph researcher and expert in
spending behavior, who helped
develop the test.
“It’s a problem across all
age groups, but younger generations
are more likely to be in denial
about what they can and can’t
afford.”
Overuse of credit is another
problem, with nearly half of all
Canadians (46 per cent) reporting
that they use high-interest credit
cards to buy things when they don’t
have enough money.
“Sometimes the simplest tips are
the best ways to curb overspending
and improve your ability to save for
the future,” says Yi. “I recommend
developing a list of the items you’re
actually shopping for – and walking
away, at least for 24 hours, when
you feel the impulse to buy
something that isn’t on your list.”
The survey of 1,169 Canadians 18
years of age and older was
conducted from Dec. 17 to 19, 2007.
To take the spending test yourself,
visit www.burnrate.ca. The site also
features articles, budgeting tips and
online calculators.
Moving in together? Talk to insurance expert
9 Rattenbury St. E., Clinton, ON N0M 1L0
Ph.: 519-482-9924 ~ 1-888-235-9260
Res.: 519-524-9260
Check out RRSP and RRIF plans designed to meet
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RRSP DEADLINE: FEBRUARY 29, 2008
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See Lawrence for a free consultation.
Jeff Bloemberg,Investment Funds Advisor
We can advise you on RRSPs,RESPs,GICs,Pension Rollovers,
Estate Planning,Mutual Fund Investing and Tax Planning
Mutual funds provided through FundEX Investments Inc.
152 Josephine St.,Box 849
Wingham,ON N0G 2W0
Tel: 519-357-4554 1-888-349-4447
Cell: 519-525-5108 Fax 519-357-2879
Email: steward.jeff@bellnet.ca
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Canadians spend first
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