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HomeMy WebLinkAboutThe Huron Expositor, 1999-02-17, Page 9THE HURON EXPOSITOR, February 17, 199 —9 FINANCIAL ADVICE FINANCIAL PLANNING STRATEGIES FOR YOUR FUTURE Personal Tax Tips There are a few tax - break opportunities for the employee of a business. We will explore expenses paid to perform your • - employment duties. • - Do you purchase goods- or seryices for ,business purpcise? You may have an opportunity to reduce your taxable income by preparing a .statementof enipinyment expenses form T777). This may:he .w:ulahle if your purchases .are not fully reimbursed by . your employer. • " Some eligible expenses int:lode automobile expenses: meals and tips :and work ;page in home expenses. - Allowable automobile. expenses include operating costs. financing charges or - leasing costs and capital cost allowance. They are ••,prorated based on the kilometres drivenio earn .employment income over. the total kilometres driven. in the year.. It is important --to keep. receipts and log. • business and total kilometres driven. _ if you buy meals for clients as part of your - _ employment duties. you are eligible to claim 50% of the meal and tip as an•expense of employment. Keep your .receipts and record the purpose of the meal. - Work space in home expenses are available only if yoti meet the restrictions. The work space must be ' where you principally - - perform your employment duties or it .1s -used exclusively on a regular and.continuous hasis for meeting people .while . performing your .employment duties: These can tie onerous to - overcome unless your activities are well planned. Mortgage -interest and capital cost allowance are specifically excluded." Toheahletousethe above entitlements, it is mandatory that you have your employer certify that these expenses were. required as part of your employment. Revenue Canada has a "Declaration • of conditions of • .employment" Corm (T22001 available specihcafly..f or this purpose. I nformation. provided is hrief and'ik not complete. Consult your tax advisor - for detailed planning -that 4� Specific to your circumstances. Shawn W. Lester. C.A: from the firm ot • John A.M. Norris Chartered ' ccountant Investment portfolios to suit your individual needs • Are you a new investor. wantine-access to Market-based: Investments. along with.- .• with. - financial adv ice and a.. • tow start-up cost :'• . Are you amore experienced investor •-eeking a portfolio that offers versatility combined w-ith protection? Are you approaching retirement • .and need' additional • protection -for your 'iaving.and retirement • plans'-.) The Mutual -Investment Portfolio is an annuity contract whit:h is available as .t - RRSP or a.Locked-In - Retirement .;account. This flexible - combination of . investment -options • `allows you to -create, customized solutions to Meet your financial goals. with help, when you want it. from your Mutual agent. Grow your personal field of dreams with the Mutual. Investment Portfolio. • —Yon set up -a -- Mutual Investment • Portfolio for as .little as of one to five veer,-: S50. a month fir an• initial payment (45'500. Segregated Funds. this .option --includes invest rnents • entirely in mutual, funds.. you can choose from • among•eight funds managed by Perigee Private Management- inc.. four by Mackenzie Finan cial Corporation_ and three by AGF Funds- Inca • . ' . Guaranteed Investments is. an option that provides guaranteed -- interest rates for terms • You may.\elect.. one or both options and. direct .t.transler of 'funds when you want at no'additional cost.. Also►. whetheryou opt for guaranteed investments or segregated fundi. your beneficiaries are protected:, FOr more information, please feel free io-contact'vt)ur - Mutual agent. (submitted • hv'Rudv Jansen) Questions & Answers about RRSP's \C) -Here are answers to some commonly asked. questions about registered retirement savings plans.: Remember. your personal - banker is another great : source for information about RSPs. • • Q:• What.is the best time • to Mart an RSP o'r to c_tintribute to an RSP' • A:. -The best time•to stain or to contribute is as siuon- --as von have earned income.. -and as early as possible in the current tax year. To. • make the, most- of your RSP - advantages. you should . contribute as early as • • possible each year.. Q: When is the annual contribution deadline' - A: To be eligible for an RSP deduction in a specific tax year. contributions can be made any time during the year, and up to 60 days --into the following year. The deadline for the 1998 tax • year is March 1. 1999, • Q: What type of income is eligible when 1 calculate my: maximum RSP contribution this year? A: The key component for most Canadians is salary - the gross amount minus union ot professional dues and claimed • • employment expense BUT before deductions for • income tax. unemployment insurance and the Canada or Quebec pension plans. which are withheld by your • employer. If you're self- employed or the partner in a firm, earned income is the, income from carrying on the business. Other sources include taxable alimony. 1 maintenance -and child . support payments, royalties from works or Inventions that are created, net fwd estate rental loamy disability pension ineoine • from the CPP or QPP. research grants and tips and gratuities. --- Q: Can I transfer RSP funds from one plan to another? A: Yes, if the funds go directly to the new plan. . But remember. if the investment - such as a Guaranteed Investment • Certificate - has a fixed ' • term. you may be. charged a penalty. As well, some institutions may charge a . transfer fee. Q: What happens to the contributions.' made to a spousal plan if we get divorced? A: Even if it was originally your money. the . funds remain the property of your spouse. unless a • court rules otherwise. Q: I've heard about Locked -in Retirement -Accounts. What are they? A:..Ifyiu leave your job • and have vested pension benefits from your employer's plan. those funds can be rolled over into a Locked -in Retirement. Account. also known as a L1R:\. • Generally youcannot withdraw funds•from a • LIRA until you are age 55. or earlier if the applicable . pension regulations permit. estimated contributions above the allowable limits. Q: What are the rules for withdrawing money from . an RSP? A: You can withdraw money from your RSP -in any amount. but remember you will be taxed at source. Withholding taxes, calculated as a percentage FARM MUTUAL FINANCIAL SERVICES INC. 497 Main St. South, Exeter, ON. NOM 1S1 Toll Free 1 -877 -206 -FARM (3276) Your RSP & RSP Loan Centre John Hanson (Exeter) 235-4000 Barb Worden (Staffa) 345-2777 Joe Uniac (Mitchell) 348-9012 Graeme Craig (Walton) 887-9381 Dean Whalen (Godench) 524-5222 Norris Peever (Godench) 524-6105 Bob McNaughton (Sealorth) 527-1571 Ken Hutchison (Mitchell) 348-9150 AINKIGnic IBM BPi ;=-' F11111111110 . Tempas c t DYMAM1e: of the total amount of the withdrawal. must he held . back bv the plan . administrator and remitted . -10 the government on your behalf. We'd K: BC like to contribute to your RRSP • Protected Mutual Funds *-GICs • Prime Rate RRSP Loans • Professionally Managed Accounts OPEN EXTENDED HOURS FOR RRSP SALES Feb. 25 - 9:30 am -8 -pm . Feb. 27 - by appointment only Feb. 26 - 9:30 am -8 pm March 1 9:30 am -8 pm • Better advice. More Options. On your terms. 527-0100 - Professional accounting, taxation, succession planning and management advisory services for agricultural and other agri-related business A John A.M. Norris CHARTERED "ACCOUNTANT v_NETF.R s :170 Plain Street. South P.O. Box 2410 Exeter. Ontario NOM 1S7 Tel: 319-235-3240 Fax: 319-235-3246 roll Free: 800-661-6344 12 \lain Street. North P.O. Box 729 Seaforth. Ontario NOK I WO -Tel: 519-527-1)672 Olt Fax: 519-527-0331 Toil Free: 888-606-6146 www.jnorrisca.com John Norris. C.A. Shawn Lester. C.A. THE IE t;FST 'iLTUAL FUND ADVICE IS CLOSE AS YOLR TD hh.aNCI I TD Investment -Specialists - Ranked jt1 For Advice FOUR Years In A Row. An independent; nationwide study§ of leading financial institutions has confirmed once again that .the best mutual fluid advice is at Your TD Branch. When you're investing, you want the best advice you can get. Fortunately, you don't have to travel far to get it. - TD BANK .56 Main St., S., Seaforth, Ont. 527-1460 Fax. 527-2908 GREEN LINE MUTUAL FUNDS TMAKING YOU A SUCCESSFUL iNVESTOR' The Green Lint fiitnl►d)3o-liad Murtha' Funds is .bete. ry 1b ri..et '.t u.agement : x..'TI)AM'), wi..iy-.•w ,, subodiorr t#iD Bank. Important iniormatson about that m, , .al (arae u . :,caned in their simptitn prospectus, which lee encessest You td read carefully before invexttle. P!•ase obtain a copy. Unit ',Atha anal nvewtkrn return will fh lust. outlet f 4 invptmewu are not insured by the Canada Deposit Insurance Corpstatasla of iia R(jt ds 1'arurance..dfptlts die Qtaabec r(' I ire nut KuannteeJ by TT) flank. i 'r'denim es 1 11) Rank, TRAM is a licensed 5 Bawl a an inrltpen er , tuuon 4e scu.jy.I leading financial irs.:utkns LOndkteti Mark rune So{uui .