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
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