Відео

Thanks!

Unless you realize a $250,000 capital gain, this change won't affect you at all :)

If you’re under the threshold then your inclusion rate would remain at 50%. But if you sold for say $250,001, that one dollar over would be taxed at the 66.7% inclusion rate.

Does that mean Canadians are paying 50% tax

@@jakemurphy5466 No, and I explain more in my full video. You only pay tax on 50% of your capital gain (or 66.7% if over the threshold) at your marginal tax rate. ua-cam.com/video/IDTZSY4Z_ko/v-deo.html

Not sure where you got that math? You're not being double taxed on your capital gains.

@@jessicamoorhouse your already taxed on your income. Then you get taxed again on the gains .

@@stevenoar5162 Correct, because a capital gain is its own form of income and thus is subject to tax.

Thank you!

I appreciate that!

Correct, just like if you were an employee at a company and you pre-pay your income taxes throughout the year (via the deductions off your pay), if you overpay, you'll get a tax refund. And yes, your current corporate tax instalments are calculated based on what you owed the previous year. So if you have to make quarterly instalments and last year you owed $4,000 in corporate tax, you'd pay $1,000 in quarterly instalments.

June 13 - 1.057 shares at $47.29/share, June 14 - 1.062 shares at $47.08/share, June 17 - 1.056 shares at $47.37/share, June 18 (Final Day) - 1.056 shares at $47.35/share = 4.231 shares total

@@jessicamoorhouse I got into DRIPs awhile back, and love seeing the dollar cost averaging in action. I was so thrilled when Wealthsimple introduced the fractional recurring option. Thanks so much for sharing!

@@wildwheelsdarin You're very welcome! :)

Always! First, because if it’s something you’re passionate about it gives you space to explore it (with little risk since you still have a full-time job to fall back on). Second, because if though the extra income may bump you into a higher tax bracket, you’ll still take home more income. I always see people being afraid of earning too much income for fear of taxes, which doesn’t make sense. You’ll still come out ahead even at a higher marginal tax rate. Plus, you could potentially write off some expenses that are both personal and business like your phone, utilities, rent, mortgage, etc.

@@jessicamoorhouse Thank you for all your help!

I'll take that as a compliment. I'm all for working with an advice-only planner with proper credentials, but often what you get at the bank is just someone trying to sell you mutual funds or a line of credit unfortunately.

Thank you!

I don't have a specific video on that but it's fairly straight-forward to do. Connect your Canadian USD bank account to your Questrade account, then make a withdrawal request and choose that bank account www.questrade.com/learning/questrade-basics/making-a-withdrawal/how-to-place-a-withdrawal-request

You can't set up a business in your wife's name if she isn't actually involved in the business, as the CRA may consider this a form of tax avoidance and there would likely be penalties. I'd suggest speaking with an account to discuss legal ways of doing income splitting to reduce your overall taxes.

Thanks so much, so glad you enjoyed the episode!

Thank you!

Best of luck on your exam! Let me know if you pass!

Heyy I passed!!

@@pawanghugeOmg, congratulations! Make sure to celebrate!

Good for you!

Sometimes keeping it simple is the best path!

Yup! I mean when I think about it, buying my first computer in my early 20s is what allowed me to start blogging, which 12 years later led me to this career. It changed my life also!

Gosh, that's a big decision to make. I think talking to an accountant would be an important step. Is it that you don't feel like you're earning enough to make it worth it?

Thanks for your reply! No, I am more concerned about how much taxes I am paying. I am a contractor, work from home with few expenses. I incorporated from the start thinking I had too. I’m paid HST too. Now I often wonder what the difference may be if I wasn’t incorporated.

I get that! I got Invisalign and omg it was the best money I’ve ever spent. Boosted my self-confidence a ton (I was always self-conscious of my teeth).

:)

Omg yes! You can save so much money this way!

👏🏻👏🏻👏🏻

So glad you liked it!

Sorry to hear that 😕

Nice!

Yes! This was a game-changer for me too!

Yes :)

@@jessicamoorhouse thank you... I will report it.

Thank you! Feels good to finally check that off my to-do list!

So typically you have to pay GST/HST in installments quarterly (check your schedule inside your CRA Business Account), and that's when you would include input tax credits for business expenses in that quarter. GST/HST returns are not connected to your income tax return. They are different returns.

@@jessicamoorhouse Oh.. So I should include the expenses I mentioned on my quarterly GST? I have been using WealthSimple for my annual tax return, and it has a section for these expenses, so I'm not sure.

Input tax credits can be a great benefit for sure!

So, not sure exactly what your accountant told you but it sounds like they may have been talking about input tax credit, not business deductions? If you're a sole proprietor, registered or not, you can write-off business expenses. However, if you want to reclaim some of the GST/HST you've paid on your business expenses, then you'd have to register for GST/HST, start collecting it from customers, but then you can reclaim any GST/HST you paid on business expenses from the amount you collected and remitted to the government.

Haha it's a great way to think about it.

The P&L shows a $12 loss due to currency fluctuation from the time of the initial buy to journalling it over. Not that big of a loss considering the amount of money I journalled over, but you very well you could wait for the value to go back up before selling the ETF and then using the cash to purchase your intended USD security. For me, I didn't want to wait to get back that $12 and miss out on potentially bigger gains by investing that money in the ETF I wished to buy shares of. And $12 is still a lot less than the amount I would have paid not doing Norbert's Gambit and just doing a currency exchange.

In general yes, but you likely can't claim the entire amout of GST/HST on the vehicle you purchase unless it is 100% used for business, and wouldn't be able to claim all of the allowable ITC in the year you purchases it since a car, as such as big expense, would be considered a capital cost allowance. I'd definitely suggest talking with your accountant about this but here are a few resources with some more info www.taxtips.ca/gst/itcvehicles.htm kitchener.tabangimotors.com/blog/how-to-buy-a-car-under-a-corporation-in-canada/ accountingottawa.com/tax-hst-itc-purchased-leased-vehicles/

No, if you stop doing business for good, you have to close your GST/HST account. Otherwise, the CRA would just assume you're still running your business and not earning an income from it, and would thus still need to file a return even if it's just a NIL return.

@@jessicamoorhouse thank you for clearing this up!

Just a high-interest savings account. You'd experience minimal tax savings putting that money in a TFSA earning such low interest compared to putting investments inside it, so that's personally what I'd save your TFSA room for (your investments that can grow inside it tax-free).

@@jessicamoorhouse Thank you!

Thank you!

Sales tax is charged to the fund, not the individual investor, which is why it's embedded in the fund's MER. If you paid sales tax outside of the fund, I'd suspect it could be on some additional fee you paid for advice or other financial services by the firm?

I guess you don’t know Scotia McLeod it’s not a fund they are portfolio managers every big bank has one,there fee is 1.5% of your total assets that they manage and 13% HST which is charged quarterly Your thinking about a mutual fund or ETF where you just pay the MER

Thank you and noting for next year's birthday!

Yes we do and I love Cobs Bread!

Thank you!