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Tax Tips “The Man” Doesn't Want You To Know
Coming straight from an industry professional, these Tax Tips offer the best ways to lower your taxes LEGALLY.
Black Diamond accountant and bookkeeper Darlene Cox of Stevenson Consulting explains that tax-free savings accounts accumulate interest that isn't taxed. “An investment paying you out in interest is getting heavily taxed,” she says. “I recommend investments that yield capital gains. Tax only applies to half of your gain while the other half remains untaxed. Investments that pay in dividends are also taxed far less than interest.”
If you've acquired capital gains this year, consider selling assets with an accrued loss to offset the gains. You may also want to realize the loss if you've had capital gains in the last three years that weren't offset by your capital gains exemption.
There are also many ways to share your tax burden with others in your family. For seniors receiving pension or Registered Retirement Income Fund (RRIF) payments, pension income splitting between spouses means you can now cut your tax bill and potentially reduce the impact of the Old Age Security (OAS) clawback! For those with investment assets, and family members taxed at lower rates there are many strategies such as a prescribed rate loan that can help share the tax burden. The key is to know when income splitting is legally possible.
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