@@andriyshapovalov8886 Neither of them are investment options for anyone intelligent and informed enough to be the author of one's own destiny as society puts it. *Buy land & own land around the world...& real estate. You will never regreat. Don't be pigeon holed.
Great content. Please tune down the background music as it was louder than your own voice and I had hard time listening to the valuable advice you are offering. Please keep up the phenomenal job
This is a very helpful page! I’m sure I’m not the only one very interested in more business tax tips and tricks. I’m a small business owner and could use all the help possible to learn more about things taxes and accounts. Appreciate all your help so far. Don’t quit doing this, you will eventually pick up and help a lot of people.
Hi Trevor, thanks so much for your kind words. And indeed there are tons of moving pieces when it comes to small business. If you are interested to know more, you can contact me for a no obligation consulation! See you in there
I think the tax people would want you to know these things. That's the reason it's in the tax rules in Canada anyways. There is just too many people unaware unfortunately but the good thing is there's videos like yours that help make Canadians aware of these tax savings the government gave.
Your intention was donate . To give back. .it's just while you give back. You get back some tax credit. It's like this money is either to the government or charity. People chose charity
Good content! I have an education loan in my home country! Can I borrow line of credit from Canadian bank, clear the education loan and the interest I pay for the line credit, can this be used to reduce the tax I pay!?
Hi Thomas I really appreciate your videos .....but I find it really hard to hear your voice even on max volume. maybe if you can get a different microphone or something so we can hear you louder on the videos Thank you
Hey Ashifur, for sure this is one of my early videos where i couldn't figure out the mic setting and noisy bgm.. i am planning to do a remaster version of this later... in the mean time, see if you can go to my recent videos to see if the audio is better? cheers!
Sorry, but your point about the donations being tax deductible is simply not accurate. And one second after, you use the term tax credit instead. Which one is it? You cannot deduct tax credits directly from a taxable income or revenue. Only actual tax deductions like RRSP help in that regard.
Is there a way to reduce deductions on your salary so you can invest that amount until tax season? I'm looking at form T1213. Is this a good idea? Pros / cons? And when can this be done and take effect?
It's def one idea. So you get to keep more of your tax money and invest. Pros. More cashflow Cons: no tax return And you need to show a consistent Rrsp contribution first. Also your company is willing to do that. Some time HR might think too much trouble to rejected it.
correct me if I am wrong, but I think the Tax Free Saving account render pretty much most these tax deduction tricks (e.g. interest exp/consultant exp) ineffective, as the income you generate are tax free, and so does the expense. But how about RRSP? Can i deduct all these interest exp/consultant fee when my RRSP mature? But is it even possible? but it seems like these tricks are most useful for super high income people who max out their RRSP and TFSA Thanks for the great tips!
Hi SC, yes, so for example say you take out $10,000 of RRSP, then your total income will be + 10,000, then you do all the other tax deductions, like interest, constellation etc and say it's -5000. so your net total income is 5000 and you pay tax according to it.
Hi Siddhartha. Can you share more? Because you are self employed? You have many side gig? Overtime alot? Usually putting into rrsp will lower your taxable income hence pay less tax to the government
@@ThomasCChan thanks for your reply no I work a regular full time job but even with my 42k income I paid almost 250 dollars last year and in 2018 my income was 35k but I was working 2 part time jobs and paid almost 600 so I wanted to know if I claim those payments back
@@17sidnag long story short. Because your part time don't know you have other part time jobs. So they will only withhold a smaller portions. So to solve that you can contribute alittle on your rrsp to reduce the tax. Therefore you don't have to write the cheque to CRA. For the exact number, you need to find an accountant
Great info. Question: My TFSA is maxed out (and invested in stocks). I had never contributed to RRSP and my 'room' is about 80k. I already invested 55K last year in stocks. On my Tax Return I should use the max amount I can (about 27K) and keep the rest for next years until I max out too. I am 62 and don't plan to retire in the next 10 years. Should I keep contibuting/investing in RRSP until maxed out too?
Hi Henry, thanks for the support! 2 benefits of the rrsp: a) reduce your taxable income for current year b) tax shelter / later purpose since you mentioned that you don't plan to retire in the next 10 years, i assume you will be receiving work income and the money in rrsp is pure for saving. then RRSP is a good idea to help you with A) and B), but the question is how much per year and when you put it in. as always, check with your accountant or financial advisor to make sure the math adds up cheers :)
You should do a video for the large numbers of divorced men who lost almost everything in the division of assets. Where you loose half of your RRSP's half of your pension and cut your assets in half like home value because you had to sell it. Then buy a condo or townhouse and you still have a big mortgage. Now gear it to the 58 or 60 year old who is very close to retirement so time is not on your side. Non of your videos deal with this, yet there are so many of us in that position. Small RRSP's only a few hundred thousand dollars in asset of your condo. What age is better for CCP and OAS. Smaller incomes and top up on OAS if income is below $44,500/yr. or right at that with a little RRIF or RRSP income to put it around $45,-$50,000. What if they keep working to say 67 or 68 or 70 yrs old. what happens. Is it better to draw of RIFF and RRSP for a couple years and delay collecting CCP and OAS ? This might sound complicated but it is just numbers that can be generalized. 2020 Divorce rate is 2.71 million (Google), growing each year adding to last years numbers and many years before number. That makes a lot of men in that situation. How about the Smith maneuver in this situation?
But CRA says If your taxable income was $50,000 in 2020, you would calculate your federal tax as follows: Pay 15% on the amount up to $48,535, or $7,280.25 Pay 20.5% on the amount between $48,535 to $97,069, or $300.33 Total federal tax payable: $7,580.58. Instead you did of 100,000 *30% = 30,000 or am I missing something?
Hi patel, 1. The example I used is federal and provincial tax 2. Your example is $50k and mine was 100k the more you make , the higher percentage you will get taxed.so you don't just tax double. 3. As I mentioned in the video, I don't calculate to the dot. Just give you a ball park figure. For the exact amount, please feel free to use the online cal. .. 😃
Misleading info - donations are only for people already doing this for personal reasons who haven’t claimed a credit. Your advice suggests EVERYONE should spend $700 to save $300 but in reality, NOT donating would make you “$400 richer”. Also if you have large credit card debts of $5000 at 19% interest, you would not have a spare $5000 hidden in an investment somewhere.
For immigrant professoionals who will be getting less than $100 per month after working in canada and want to donate that RP back to canadian hospitals as charity, how can they get CRA to direct their so called retirement to a charity direcrly? Given that they will be living outside canada not in canada!
3:33 The conclusion is ridiculous. If you invest the same $1,800 every year upon refund for 30 years, you'll end up with $325,000 / 1.05 = $309,500. The difference is $15,500, which is far less dramatic than it sounds in the video.
I also think there may have been an error but a different one. I tried plugging the numbers to see who was right but I ended up with a future value of $119,589.93. That would mean the $1800 yearly tax refunds growing at 5% would fall far short of $325,000. My inputs were n = 30, i = 5%, PMT = -1800, and PV = 0. I set compounding to annual. Perhaps, Thomas could chime in and explain how he got the numbers
@@augustinwai6399 You are absolutely right. I neglected to check the calculation. My point was that under the same strategy, depositing the $1,800 at the beginning vs the end of each year would lead to a 5% difference in the final value. After double-checking the numbers, here's what I got: Yearly compounding, year end: $119,589.93 Yearly compounding, year start: $125,569.42 Continuous compounding, year end: $122,233.40 Continuous compounding, year start: $128,500.44
@@ThomasCChan you were comparing rrsp's to tfsa's and you said that you were only aloud 6k in tfsa, which is true but if you can have multiple tfsa's then that comment is misleading and inaccurte
Hi T, not sure which part is misleading or inaccurate? As of 2021, the max room you can have for TFSA is still $6,000 per year. similar to RRSP, the unused room before can carry forward to this year. so say you already max out TFSA already until 2020. this year you can only put $6,000 regardless of how many TFSA accounts you have.
@@tedcapital1237 Hi, Thomas is correct on this point. It doesn't matter how many TFSA accounts you have, the total amount you can contribute remains the same. Please do not think that each additional TFSA account allows for more contribution room
You can have as many TFSA account as you feel like it but you max contribution room cannot exceed the 6k between all your TFSA . If it does, you pay a penalty. It is your responsibility keep track of the contribution.
What would you like to know more about? Let me know!
IF i ASK QUESTION IS THIS FREE?
@@ybc8495 hi Giving, what do you like to ask?
What would make more money RRSP or TFSA in the end.
@@andriyshapovalov8886 great questions
Three factors:
Contribution amount
Your current tax bracket
Your future tax bracket when you withdraw
@@andriyshapovalov8886 Neither of them are investment options for anyone intelligent and informed enough to be the author of one's own destiny as society puts it.
*Buy land & own land around the world...& real estate. You will never regreat. Don't be pigeon holed.
Great content. Please tune down the background music as it was louder than your own voice and I had hard time listening to the valuable advice you are offering. Please keep up the phenomenal job
Hi Gul! Thank you for your advice.
I agree! As this is more of my earlier attempt
Can you go to my recent videos see if it's better?
@@ThomasCChan No music needed!!!
Great video!!! I love how you clearly go over all the main points and you cut out the fluff! thankyou for your clear explanations! 😊
Glad you like it Rebecca!
This is a very helpful page! I’m sure I’m not the only one very interested in more business tax tips and tricks. I’m a small business owner and could use all the help possible to learn more about things taxes and accounts. Appreciate all your help so far. Don’t quit doing this, you will eventually pick up and help a lot of people.
Hi Trevor, thanks so much for your kind words.
And indeed there are tons of moving pieces when it comes to small business.
If you are interested to know more, you can contact me for a no obligation consulation!
See you in there
I think the tax people would want you to know these things. That's the reason it's in the tax rules in Canada anyways. There is just too many people unaware unfortunately but the good thing is there's videos like yours that help make Canadians aware of these tax savings the government gave.
For sure! 🙏🎉😃
Thanks for this information. I wished you could just remove the sound backround . The music is louder than you speak.
Excellent content and explainer video. Keep up the great work! 👍👍
Awesome! Thanks for watching!
I dont understand the purpose of donation.
In the example, you donate $700 and get a $300 tax credit.
But you just lost $400, so what is the point?
Your intention was donate . To give back. .it's just while you give back. You get back some tax credit.
It's like this money is either to the government or charity. People chose charity
Can you carry forward business loss? expenses more than what the business earned ?
Very informative, I was hoping to cut the background music to heard the voice clearly.
For sure. These videos are the early stage production.
Audio and bgm should be much better now
Liked your video. Simple explanation and easy steps to save tax.
Glad it was helpful!
Do you have any videos about our Cestui Que Vie Trusts?
Good content!
I have an education loan in my home country! Can I borrow line of credit from Canadian bank, clear the education loan and the interest I pay for the line credit, can this be used to reduce the tax I pay!?
Because it's borrowing to pay off other debt. So I don't think it's tax deductible
Hi Thomas I really appreciate your videos .....but I find it really hard to hear your voice even on max volume.
maybe if you can get a different microphone or something so we can hear you louder on the videos
Thank you
Hey Ashifur, for sure this is one of my early videos where i couldn't figure out the mic setting and noisy bgm.. i am planning to do a remaster version of this later... in the mean time, see if you can go to my recent videos to see if the audio is better? cheers!
Would you please explain what the other 14 secrets in that book in another video?
Hi there the other secrets is in my other videos.
Great Job Thomas. Very informative.
Thank you Mohamed!
Glad you like it!
Is your book in the market?
Coming soon!
Sorry, but your point about the donations being tax deductible is simply not accurate. And one second after, you use the term tax credit instead. Which one is it? You cannot deduct tax credits directly from a taxable income or revenue. Only actual tax deductions like RRSP help in that regard.
Is there a way to reduce deductions on your salary so you can invest that amount until tax season? I'm looking at form T1213. Is this a good idea? Pros / cons? And when can this be done and take effect?
It's def one idea. So you get to keep more of your tax money and invest.
Pros. More cashflow
Cons: no tax return
And you need to show a consistent Rrsp contribution first.
Also your company is willing to do that. Some time HR might think too much trouble to rejected it.
Brilliant content keep it up 🌟
Thank you!
Great channel.Canadian content 👍🏻🦫
More secrets like this please!
😀
correct me if I am wrong, but I think the Tax Free Saving account render pretty much most these tax deduction tricks (e.g. interest exp/consultant exp) ineffective, as the income you generate are tax free, and so does the expense. But how about RRSP? Can i deduct all these interest exp/consultant fee when my RRSP mature? But is it even possible?
but it seems like these tricks are most useful for super high income people who max out their RRSP and TFSA
Thanks for the great tips!
Hi SC, yes, so for example say you take out $10,000 of RRSP, then your total income will be + 10,000, then you do all the other tax deductions, like interest, constellation etc and say it's -5000. so your net total income is 5000 and you pay tax according to it.
are you an accountant? do you work with people in BC?
Hi Jay, I am not an accountant.
I work as a financial advisor which provide consulation for ppl to build wealth.
And yes I work with ppl in BC.
Great channel
Thank you!
I have paid around 600 to CRA as I didn't know all this.. Can I get that money back if I contribute to RRSP and TFSA?
Hi Siddhartha.
Can you share more?
Because you are self employed?
You have many side gig?
Overtime alot?
Usually putting into rrsp will lower your taxable income hence pay less tax to the government
@@ThomasCChan thanks for your reply no I work a regular full time job but even with my 42k income I paid almost 250 dollars last year and in 2018 my income was 35k but I was working 2 part time jobs and paid almost 600 so I wanted to know if I claim those payments back
@@17sidnag long story short. Because your part time don't know you have other part time jobs. So they will only withhold a smaller portions.
So to solve that you can contribute alittle on your rrsp to reduce the tax. Therefore you don't have to write the cheque to CRA.
For the exact number, you need to find an accountant
Reducing capital gains on selling a second property?? Help!
Hi Dyanne,
Feel free to have a chat with us
www.thomascchan.com/thomas
Great info. Question: My TFSA is maxed out (and invested in stocks). I had never contributed to RRSP and my 'room' is about 80k. I already invested 55K last year in stocks. On my Tax Return I should use the max amount I can (about 27K) and keep the rest for next years until I max out too. I am 62 and don't plan to retire in the next 10 years. Should I keep contibuting/investing in RRSP until maxed out too?
Hi Henry, thanks for the support!
2 benefits of the rrsp:
a) reduce your taxable income for current year
b) tax shelter / later purpose
since you mentioned that you don't plan to retire in the next 10 years, i assume you will be receiving work income and the money in rrsp is pure for saving.
then RRSP is a good idea to help you with A) and B), but the question is how much per year and when you put it in.
as always, check with your accountant or financial advisor to make sure the math adds up
cheers :)
@@ThomasCChan Yes, I plan to work at least 10 more years (FT). The RRSP is 100% invested in stocks (as my TFSA is).
Thank u
How do I stop the background music play while you talk? very difficult to understand what you talk!
You can check out my recent videos. I made a remaster version. 😃
thomas your crushing! this is awesome
Thank you Quinton!
You should do a video for the large numbers of divorced men who lost almost everything in the division of assets. Where you loose half of your RRSP's half of your pension and cut your assets in half like home value because you had to sell it. Then buy a condo or townhouse and you still have a big mortgage. Now gear it to the 58 or 60 year old who is very close to retirement so time is not on your side. Non of your videos deal with this, yet there are so many of us in that position. Small RRSP's only a few hundred thousand dollars in asset of your condo. What age is better for CCP and OAS. Smaller incomes and top up on OAS if income is below $44,500/yr. or right at that with a little RRIF or RRSP income to put it around $45,-$50,000. What if they keep working to say 67 or 68 or 70 yrs old. what happens. Is it better to draw of RIFF and RRSP for a couple years and delay collecting CCP and OAS ? This might sound complicated but it is just numbers that can be generalized. 2020 Divorce rate is 2.71 million (Google), growing each year adding to last years numbers and many years before number. That makes a lot of men in that situation. How about the Smith maneuver in this situation?
100 correct yet no answer. Too much of us get use to the abuse and because it's not us we don't care ;(
Thanks for the tax tips Thomas, I will definitely look into the Smith Maneuver since I have an unused line of credit
Haha I just translated what the book said. Thank him! 😆
But CRA says If your taxable income was $50,000 in 2020, you would calculate your federal tax as follows:
Pay 15% on the amount up to $48,535, or $7,280.25
Pay 20.5% on the amount between $48,535 to $97,069, or $300.33
Total federal tax payable: $7,580.58.
Instead you did of 100,000 *30% = 30,000
or am I missing something?
Hi patel,
1. The example I used is federal and provincial tax
2. Your example is $50k and mine was 100k
the more you make , the higher percentage you will get taxed.so you don't just tax double.
3. As I mentioned in the video, I don't calculate to the dot. Just give you a ball park figure.
For the exact amount, please feel free to use the online cal. ..
😃
Misleading info - donations are only for people already doing this for personal reasons who haven’t claimed a credit. Your advice suggests EVERYONE should spend $700 to save $300 but in reality, NOT donating would make you “$400 richer”. Also if you have large credit card debts of $5000 at 19% interest, you would not have a spare $5000 hidden in an investment somewhere.
I love your chanel Thomas im also in Canada 🇨🇦
Sweet! Thanks for supporting!
For immigrant professoionals who will be getting less than $100 per month after working in canada and want to donate that RP back to canadian hospitals as charity, how can they get CRA to direct their so called retirement to a charity direcrly? Given that they will be living outside canada not in canada!
3:33 The conclusion is ridiculous. If you invest the same $1,800 every year upon refund for 30 years, you'll end up with $325,000 / 1.05 = $309,500. The difference is $15,500, which is far less dramatic than it sounds in the video.
I also think there may have been an error but a different one. I tried plugging the numbers to see who was right but I ended up with a future value of $119,589.93. That would mean the $1800 yearly tax refunds growing at 5% would fall far short of $325,000. My inputs were n = 30, i = 5%, PMT = -1800, and PV = 0. I set compounding to annual. Perhaps, Thomas could chime in and explain how he got the numbers
@@augustinwai6399 You are absolutely right. I neglected to check the calculation. My point was that under the same strategy, depositing the $1,800 at the beginning vs the end of each year would lead to a 5% difference in the final value. After double-checking the numbers, here's what I got:
Yearly compounding, year end: $119,589.93
Yearly compounding, year start: $125,569.42
Continuous compounding, year end: $122,233.40
Continuous compounding, year start: $128,500.44
Yet another reason why I wish Quebec would separate thanks Thomas : )
😂
the voice is very low and on top of that, there is this music that unnecessarily playing! I got fed up and finally left!!
You could get yourself a better microphone with all that money you saved from paying less taxes
😃😂 well said.
You can check my latest video to see if the audio has been approved!
@@ThomasCChan Lol, I just wanted to make a funny comment about the bad audio, I'm glad to hear that you improved it since then. Take care
@@HolyPelvisPresley haha no worry. It's one of my early videos. Worth to comment 😂
Im like #1000 😏👍
Work smart and hard and get a bigger paycheck. Lol
🥰🥰
Hi Jason!
you can have multiple TFSA accounts, so what you are saying is incorrect. How are you qualified to make these videos?
Hi T. Thanks for the comment, can you elaborate on that?
Yes it's true you can have multiple TFSA but thats not my topic in this video?
@@ThomasCChan you were comparing rrsp's to tfsa's and you said that you were only aloud 6k in tfsa, which is true but if you can have multiple tfsa's then that comment is misleading and inaccurte
Hi T, not sure which part is misleading or inaccurate?
As of 2021, the max room you can have for TFSA is still $6,000 per year.
similar to RRSP, the unused room before can carry forward to this year.
so say you already max out TFSA already until 2020.
this year you can only put $6,000 regardless of how many TFSA accounts you have.
@@tedcapital1237 Hi, Thomas is correct on this point. It doesn't matter how many TFSA accounts you have, the total amount you can contribute remains the same. Please do not think that each additional TFSA account allows for more contribution room
You can have as many TFSA account as you feel like it but you max contribution room cannot exceed the 6k between all your TFSA . If it does, you pay a penalty. It is your responsibility keep track of the contribution.
Liked your video. Simple explanation and easy steps to save tax.
Hey Ravi! Thanks for watching!
What else you like to know more!