The Citizen, 2003-07-23, Page 7PEOPLE AROUND
AUBURN
By
Margaret
Fraser
Call
526-1112
The Auburn Sesquicentennial
souvenir cookbook is available. The
cookbook can be purchased at
Don't let cottage dream become nightmare
Have you dreamed about owning a
cottage, mornings on the lake, lazy
afternoons, and bonfires at night?
The big question is - can you afford
it?
“The first thing to determine is
whether you want a cottage for its
investment value or for lifestyle
reasons,” says Chartered Accountant
Tim Cestnick, Toronto. “If it’s
mostly for the lifestyle, it may make
more sense to rent.”
Next, consider how a second
property would affect your overall
financial plan. “Look at the total cost
A cold supper for a hot furnace
A cold meat and salad supper was available in Belgrave for
those who wanted a break from cooking on Saturday.
Hosted by Knox United Church, funds raised from the
supper will go towards a new furnace. (Sarah Mann photo)
PEOPLE AROUND
BELGRAVE
By Linda
Campbell
Call
357-2188
the Auburn
celebration
Fun day
Stickers, Auburn Co-op, Auburn
post office or call 526-7249 or 526-
7169.
All proceeds go to
Sesquicentennial fund.
The Auburn 150th
Silent Auction and
originally scheduled for July 26 has
been changed to Sept. 20. Contact
Cathy Carter at the post office about
donations.
Eleanor Bernice Tierney passed
away suddenly in Hardin County
Hospital, Fort Knox Kentucky. She
was in her 67th year. She was
of the cottage, how you plan to
finance it, and what the operating
expenses will be,” says Chartered
Accountant Lionel Colman. “Don’t
forget to include things like the cost
of transportation to and from the
cottage and insurance.”
Once you’re certain you can afford
a cottage, you must determine how
to finance it. According to Cestnick,
“deciding whether to borrow or use
savings depends on cash flow and
your other assets.”
New cottage owners sometimes
forget to budget for hidden costs or
Kendra Folkard of Belgrave won
second place in Wingham Literary
Day short story contest.
Ross and Barbara Anderson and
Les and Donna Shaw enjoyed a
week’s holiday at Killbear
Provincial Park near Parry Sound.
Check out The Citizen's
WEBSITE
at www.northhuron.on.ca
surrounded by her gentle family and
will always be remembered by her
sister Patricia Ham of the Auburn
School House. Condolences to
Patricia Ham from her friends and
family.
Fritz and Grace Datema had a very
good turnout to their 50th wedding
anniversary open house last
Saturday in Blyth.
Happy birthday wishes to Andy
Nethery, Marc Nesbitt, Brian
Merkley, Steven Gross, Johnathon
McDowell, Sarah Korporaal, Steven
Popp, Dave Clynick, Richard
outlays to improve the property. For
example, if you plan to use your
cottage in the winter, you need to
winterize it, heat it, have the snow
removed from the roof and maintain
access by road. Other enhancements
may include replacing the dock or
building a boathouse.
“Draw up a budget for these
improvements and a timeframe for
putting them in place,” suggests
Colman.
It’s important to keep invoices,
receipts, cancelled cheques and
before-and-after photos of any
improvements you make. “The
amount spent on improvements is
added to your original cost to create
your adjusted cost base,” explains
Colman. “When you sell your
cottage you calculate your capital
gain by subtracting your adjusted
cost base from your net sales
proceeds. The higher the adjusted
cost base, the better for the taxpayer,
since it reduces the amount of capital
gain.”
One way to defray the expenses
associated with cottage ownership is
to rent it out when you’re not using
it. If you go this route, you must
report the rental income for tax
purposes. However, you may end up
with little or no net income from the
rental operation, once you allocate
an appropriate share of property
taxes, utilities and maintenance.
Keep in mind that the most lucrative
rental period may be when you want
to use the property yourself. And
renting can also add to your costs,
due to increased wear and tear on the
cottage.
Finally, plan for the future. If you
intend to sell your cottage at some
point, you may be liable for
significant capital gains taxes. “One
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______________THE CITIZEN, WEDNESDAY, JULY 23, 2003. PAGE 7.
Hiuser, Mike Stephens, Tyler
Siertsema, Danielle Thompson,
Rachel Cook, Allan Reid, Nathan
Thomson, Kevin John’s, Alan
Siertsema, Angelique Delbergue,
Rachel Korporaal, Joselin Andrews,
Klaske Werth, Belinda Marshall,
Dave Marshall, Blair Bennett,
Darlene Empey, George Townsend
and John Verwey.
Happy anniversary to Fred and
Irene Herbert, Allan and Karen
Webster, Fred and Ruth Armstrong,
Shane and Dana Verwe) and Shirley
and Darrell Wood.
way to minimize the capital gains
taxes on a second property is to
designate it as your principal
residence for one or more years,”
says Cestnick. “This means you can
use the principal residence
exemption to shelter all, or a portion
of any capital gains on the property.”
If you want a family member to
inherit the cottage, factor this into
your estate planning. “If the cottage
is transferred to your spouse upon
your death, the capital gain does not
become taxable until your spouse
sells it or dies,” says Colman. “If you
leave the cottage to other family
members in your will, the capital
gain is taxable when you die.”
Because of the range of financial
issues associated with vacation
property ownership, including the
different ways in which to hold title
and the number of options available
to minimize or defer capital gains
taxes, probate fees and other costs,
consult a Chartered Accountant
before you buy or sell a cottage.
Otherwise, your cottage dream may
turn into a financial nightmare.
- Brought to you by The Institute
of Chartered Accountants of
Ontario.
Doug Gough,
R.I.B. (ONT.)
CAIB, Manager
FROM AUBURN
4-Hers
tour
Zehrs
The sixth meeting of the
Wawanosh Mixers was held on July
3 in Goderich.
At 9:50 a.m. members went to the
Goderich Zehrs and began tour
through the store. After watching a
cake being decorated, members were
given the cake and reusable tubes of
icing to practise with.
After the tour they enjoyed a swim
in Robinson’s pool.
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