Ottawa’s new Tax-Free Savings Accounts (or TFSAs) let you earn investment income — including interest, dividends and capital gains — tax free.
A tax-free savings account can generally hold the same investments as an RRSP. This includes cash, mutual funds, publicly traded stocks, GICs and bonds.
However, you are best to hold lower-risk investments in your TFSA. That’s because you don’t want …read more »
Registered retirement savings plans, or RRSPs, are the best-known and most widely used tax shelters in Canada. The tax treatment of RRSPs is what sets them apart from other investment accounts. Ottawa created RRSP tax shelters to let Canadians invest money on a tax-deferred basis, presumably for retirement.
You can put money in RRSP tax shelters each year (up to a …read more »
This past year brought richly rewarding takeovers of several of our long-time favourites including Falconbridge, Inco, Fairmont and Sleeman. As a result, you may face a substantial capital-gains tax bill.
Before yielding to the year-end tax-loss selling urge, keep in mind that it’s always a mistake to sell good stocks at this time of year. Tax-loss selling sometimes drives share prices …read more »
Flow-through funds are tax shelters that mainly invest in the flow-through shares issued by junior mining and oil companies. These companies spend the proceeds from the shares they sell on mineral exploration and development, an activity that qualifies for certain tax credits and tax deferrals. These tax benefits “flow through” to investors in the fund. To take advantage of these …read more »
Tax shelters are legal investment vehicles that let investors pay less tax. Some are very risky and should be avoided, but others, like RRSPs and TFSAs, are great ways for Canadian investors to cut their tax bills.
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