I am not a professional accountant but I think I know more about personal tax than 99% of Canadians. This video is very well made. Even I learned something from it.
... ya, be a good slave ... income tax is extortion/theft ... go all cash income and stop paying slave tax which the government (govern=control/mente=mind....duhh)
Literally knew everything in this video that was applicable to me. So saved nothing. And guess what, I dont think i know more that 99% of most Canadians, you Conceited nerd clown.
The fact that so many citizen don't understand these basic Canadian tax principles really highlights how preposterously complex it really is. If the government had truly built it for its citizens, it would've, at the very least, had it taught extensively in public schools. Right now the vast majority of people just wing it or delegate their reports to hired accountants, without understanding most of what's happening, to the detriment of their future financial health and security.
how'd you simplify it though? they didn't make it complex for fun, it's a cumulation of decades of policies designed to fit changes in economic conditions.
Tax law are complex for the reason that a lot of people will take advantage of it if it's not written that way. Same way criminal or any other law are complex, to prevent people from cheating the system and commit crime without being held accountable
This video should be taught to every single Canadian during high school (14-18) and AGAIN at 22-25 (and likely again at 30-40 "if" they reach Canada's new housing vaulting bar in the clouds) Great video
... ya, be a good slave ... income tax is extortion/theft ... go all cash income and stop paying slave tax which the government (govern=control/mente=mind....duhh)
@@amank.7052 It is a big task but for future generations this type of knowledge isn't "new tech" or an innovation, it is necessary knowledge (that should become common knowledge). Education system really needs an overhaul for financial education.
just missed one thing for RRSPS which is that yes it is 18% of your gross income, although it is up to a maximum set by the CRA (which this years is $31,560). Also, another great way to reduce your taxes payable each year is actually taking advantage of tax-exempt equity life insurance polices that allow you to dump in money just like a TFSA, except that there is no limit, is allowed to grow tax free, and also able to access that money without any tax! Great video overall.
Hi there, great video - I am an accountant. Everything here was great tips but in regards to employer matched RRSP contributions, these are added to income as a box 40 tax benefit and then deducted off - its a net zero game. Only the employees contribution truly reduces taxable income. Well put together video, well spoke and great presentation, keep up the good work!
The rise in tax rates is why I decided to roll over my 401k to a Roth IRA. I don’t want to be 59 and paying taxes on withdrawals from my retirement account.
Pre-tax contributions can help lower income taxes during your working years, while after-tax contributions can reduce your tax burden in retirement. Both have their advantages, but it’s also smart to save outside traditional retirement plans, such as individual investment accounts or with guidance from a financial advisor.
I completely agree. I'm in my mid-40s, getting closer to retirement, with over $2 million in non-retirement funds. I'm debt-free and hold relatively little in my retirement accounts compared to my total portfolio over the last three years. Honestly, you can't ignore the value of a good financial advisor-just make sure to do your homework and find a trustworthy fiduciary.
This is a spam thread with a few bots "conversing" until eventually mentioning the name of a scam financial advisor that will appear legit but isn't. That's why someone is mentioning a 401k on a video about Canada.
Tax accountant here. There are some misinformation here on CCA on rental property, and I would generally be carefully doing income split outside of RRSP without talking to an actual CPA. Honest advice, if your tax involves complex topics (i.e. mutliple rental property, estate tax, any income splitting (other than RRSP), etc), speak to a CPA. Another thing, you can't "AVOID" tax, that's what GAAR (General Anti-Avoidance Rules) are for, you can use the tax deferral / saving method allowed by the CRA.
@@ChefVlahosThis part especially. Especially with the newly enforced (rules were always there but not enforced) mandatory disclosure requirements especially when it comes to application of tax strategies within the ITA. Since there's not gonna be a client that'll pay me 25k for the service.. why should we risk a 25K fine?
I think you make a very good point with medical expenses. A lot of taxpayers don't know that. They think they can only claim the medical expense in the year its incurred.
It's a fairly significant number to start getting any relief. My wife and I both have autoimmune diseases and her diagnosis required travelling 100km each way to specialists a couple of times a month for a year. Usually we don't reach the threshold. We always track and file it though.
@@thevilifyingforce Yes its the lesser of 3% of your net income or $2,759 in 2024. You and your wife can jointly file your respective medical expenses on one return. The travel expenses count because its more than 40 km away from your house. That would include both vehicle and meal costs. Just vehicle costs alone I calculate $2,832 annually ($0.59 x 400 x 12)
@fantasyguru26 my apologies, I didn't provide enough context to the post. Something about my brain wandering away on me. We certainly did get a good claim that year, but usually we don't. Is I guess what I was trying to say.
Over paying taxes through payroll taxes, means you give the gvt an interest free loan. You should balance out by using annual calculators and work it back to weekly, biweekly. Also taking benefits and let company pay the vendor, means you sacrifice income. Benefits are taxable. Check out for an employer monthly parking benefit. There's not loss for both. You effectively pay the tax on he benefit which cash flow wise is cheaper than paying the monthly parking out of after tax pay. Effectively you paying your parking with pre-tax money. I had this benefit previously. It works like a charm
This was an extremely insightful video. Much more detailed than many others on YT for Canada. Keep these videos coming! You unquestionably earned a subscriber. Would love to learn more about Canadian small business tax deductions and the lesser known deductions.
... ya, be a good slave ... income tax is extortion/theft ... go all cash income and stop paying slave tax which the government (govern=control/mente=mind....duhh)
... ya, be a good slave ... income tax is extortion/theft ... go all cash income and stop paying slave tax which the government (govern=control/mente=mind....duhh)
Dude, you're actually the best man. Thank you for such candid and engaging personal finances tips. You are doing all British Columbians and Canadians a great public service. Thank you.
Just wanted to share this: RUclips has recommended this video on my home page for the last 4 days. I will click on it, like, and leave a comment so I don't get recommended this again. No problem for helping the algorithm. Have a good one.
One edit needed: CCA recapture is limited to the amount of CCA ever taken on the property (hence "recapture"). If you sold the property for more than the original cost, the difference is still a capital gain. So in your rental property example, there's a CCA recapture on the 100k of CCA taken to depreciate the property to 500k, and there's a 100k capital gain because you sold it for $100k more than the purchase price (700-600). You don't add the full 200k as recapture because there's only 100k of CCA to recapture in the first place.
This guy doesn't know much, but he is a salesman, not an accountant. He didn't mention a few other things, like donating your publicly traded securities.
Woww I have never subscribed so fast in my life. Thank you for simplifying it enough for us normal folks to actually understand how to survive Canada 😅❤. I just landed my first job after university and want to be more financially successful soo can’t wait for more videos like this 💕
I was very much impressed by the knowledge included in this video, and he offered it all while not even once asking you to click subscribe, this or that. Like many other listeners I wish I had known all this 10 and 20 years sooner. Good job!
Instant subscribe! Man youre simply too good at explaining the complex tax structures in simple words. Every question I had was answered in one video and learned many new things. Many thanks for sharing your wealth of knowledge 🙏
This is by far the most directly impactful, knowledge full video I've watched on RUclips this year! OMG! Thank you, THANK YOU! Please and please make MORE! I'm subscribed now. Superb pace of narration too. Sometimes youtube can use its algorithm for good 😂
Great video Ryan! Thank you. I plan to integrate some of these breaks into my finances. I'm hoping we can get out of this decade of robbery and have a election soon. I have never been so broke in my life! 😮💨
Great video. Just one correction - recapture is only up to the original cost. So you will get $100k tax as orignary income (ie. Diff between your UCC and ACB) and the other $100k still as captial gain (i.e. diff between ACB and proceed).
@7:32 - There's no withdrawal limit, but the withdrawal has to specifically be for purchasing a home though from what I understand. Correct me If I'm wrong.
FHSA is great it just has a annual limit of $8000 when you first open it, and ONLY carries forward $8000 per year. Meaning if you open it this year and do not make any deposits for couple years it will cap at $16,000. So for everyone young adult here you can open an account but make no deposits just to have that room available. Also there is a lifetime limit of $40,000.
Thanks for creating this video, very helpful for people who are novice in this topic and also helps to provide and ask questions to their tax consultants.
During my working years (retired now), I asked my HR payroll to take an additional $100 per pay (every two weeks) in extra taxes. I saw this as a form of "forced savings". I know it goes againts rules of investing right away, but because of a defined benefit pension at work I was limited in the amount of RRSP room due to the provision of pension adjustments. I was still able to maximize my RRSP contibutions (used my tax refund for RRSP contributions). But having the extra taken off had 2 benefits: (1) always getting a good tax return, and (2) since my take home pay was reduced, the actual gap between my income during my working years and my retirement income was smaller.
@@flashmedia8953 All of my RRSP contirbutions during my workinmg years were in the form of spousal contibutions. Since we are savers, we are both maxed out of TFSA contibutions.
I remember my mom explaining the tax bracket thing to me when she didn't get the raise that came with her increasing responsibilities. This is what her employer told her. Later she found out the women here were getting paid much less than the men and she left because of this. Fortunately there is pay transparency laws now but every time I hear this, it originates from an employer
Just watched your Video - Excellent ! : ) I have subbed ... Appreciate the ''verbal'' as well as the ''power point'' parts of the vid also - Helps Me to [better] 'grasp' what you're saying / explaining by 'hearing' & ''seeing'' what you've just said ! Thanks again !! HAGD, Cindy : )
Thank you Twain. Someone who finds themselves unemployed but owes the government taxes from previous tax year and does not have said amount in the month to month operating banking account but does have investments. The question is; if one withdraws from the investments to pay the taxes, does the government still tax the full amount?
Yes the investments will still get taxed as usual, but they can apply for penalty & interest relief with the CRA if they’re experiencing financial hardship
RRSPs are considered a "tax deduction" in the year they are claimed. In reality, they are a tax deferment until you are compelled to cash them in your "golden years," at which time they become taxable income.
not really. Your RRSP will mature at age 71. At that age, you can no longer contribute to your RRSP and you're required to take that money out. The best option you can do for this is to transfer your RRSP into RRIF. From your RRIF, you can have a minimal withdraw amount stated by the Federal government. Anything above the minimum amount will get taxed.
@@flashmedia8953 Yes really. RRIF funds count as taxable income in the year you withdraw them. Anything above the minimum is taxed right away (withholding tax) instead of like an annual income, but you still pay income tax on RRIF withdraws up to the minimum.
the part about capital gains is insane, taking 100% of the the risk and getting sooo much money taken from the government while they had absolutely zero risk... just PAINFUL
(Generally) poor people who have never broken out of the first tax bracket don’t understand marginal tax rates because they never had to experience it.
Excellent video Twain! Clear, concise and understandable - thank you! I jumped on midstream and with the US dollars in the video I initially thought info was US based. I thought this might be worth a mention but glad that I hung in to see the rest of your presentation. Great job!
Thank you so much for your research and sharing your knowledge with us. There's so much information about the states not too much for Canada. I appreciate this video very much ❤
... ya, be a good slave ... income tax is extortion/theft ... go all cash income and stop paying slave tax which the government (govern=control/mente=mind....duhh)
When I worked for a certain company about 30 years ago they had set pay raises that were triggered when certain criteria were met. But one particular raise amount was withheld for some employees because their net income would have went down, even after filing taxes. The company would wait for the next trigger for the higher raise amount. It does happen but it is rare. It is not a myth.
That first point, I had a client who had an employee that refused a raise because he didn't want to pay more taxes. My client is a good guy so he asked me to do up two different paystubs for the employee so he could see the difference.
Can't find much fault with what you said, except for the CCA recapture on the rental property. With depreciable properties, the POD for CCA purposes cannot exceed the original capital cost. In this case, $600K. This means that the recapture is only $100K. However, because you sold it for $700K and the cost is $600K, you have a capital gain of $100K. This capital gain is included in income at 50%, so the total amount of income to be added to your taxable income for the year from selling the rental property is $150K, not $200K.
Thanks for sharing this information-it was incredibly helpful and gave me a real confidence boost in understanding how to file my taxes here in British Columbia! Navigating tax regulations can feel overwhelming, but your guidance made it so much clearer. I feel much more prepared and informed now-appreciate the support!
... ya, be a good slave ... income tax is extortion/theft ... go all cash income and stop paying slave tax which the government (govern=control/mente=mind....duhh)
Thank you, what an excellent video you made! I will be sharing this with my friends. Just a thought, have you considered doing a video for those of us in Quebec? I'd love to see that.
I heard that if you are regular ‘giver’ and donate a significant amount, say 10% or more of gross income, you can then ask your employer to apply a lower tax bracket to your paycheques. You of course get a lower refund on your tax return, but you have more cash in hand throughout the year. Is this true?
As a self-employed household, you cannot deduct 100% of your purchases as write offs; try 50%. You still shell out at least half. You also pay for your own dental/eyes/prescriptions, etc., unlike 'employees' as well as no Vacation Pay. We pay in to CPP and ALWAYS owe taxes.
Nice, well explained video. My spouse and I are retired and have a tfsa and each collect pensions. One of the our pensions is greater than the other so we pretty much just use income splitting to save on taxes. Medical expenses may also be available this year so it was good to hear your information on that. Thanks.
At 22:55 he said taxable income would be 200K when you depreciate. This is not 100% correct. It is actually broken up into two parts: Recapture and Capital gain. His recapture would be 600K purchase price less UCC of 500K= 100K added to income. Then the Capital gains would be the 700K sale less 600K purchase = 100K capital gain, then we take the 50% inclusion so we will then have 50K in taxable capital gain.
It’s a great way to do currency exchange, just be careful of currency fluctuations when going from USD to CAD. Here’s a good video on the Norbert’s gambit: ruclips.net/video/3HelwubpgWY/видео.htmlsi=V8KkA9GtxqPksa1-
Preferred?? Right.. most people are living paycheck to paycheck and are not expecting, let alone saving for a big payment come tax season. The marginal increase in pay over 26 pay periods will go unnoticed if not enough is taken off through the course of the year
@@James-jk3ei If you want to give the govt a tax-free loan then why don't you go to HR and have them withhold more tax? And please, do you know how many rich people there are? More than 40% own their homes outright. 800 dollar a month car payments and $150 a month cellphone plans are self-inflicted. The AVERAGE tax refund is ~$1000, and that number is kept down by the smart individuals, you think >100 bucks a month will go unnoticed by the 'paycheck to paycheck' people out there?
I believe that your calculation of the taxable capital gain on house sale may be incorrect. The $100,000 recapture is income, but the $100,000 gain over purchase price is the taxable capital gain, which is reduced to $50,000. But did the CRA not recently change the capital gain inclusion rate fron 50% to 2/3 ?
They changed the capital gains rate for personal income from 1/2 to 2/3rds with gains over and above $250,000. The first $250,000 still has the 50% inclusion rate so the $100,000 falls into that.
Hey I just wanted to know if I sell cryptos and alt coins in canada and how much total percentage of amount do I need to pay of profit? also, if I sell them and transfer those money in TFSA account still I need to pay tax? Thank you.
For non-reg accounts, 50% of the gains will be taxed at your highest marginal tax rate. Selling them will trigger taxes, putting it into TFSA just allows it to grow tax-free thereafter
If medical costs sum to greater than 3% of income, but those costs were reimbursed by medical insurance benefits, can we still reduce our income by that amount? Also, does the cost of insurance premiums count as a medical cost?
Only out-of-pocket costs can be considered as medical expense, so if the costs were reimbursed then it cannot be claimed. Premiums paid by yourself to private health insurance plans can count as medical expense
If you anticipate having significant income in retirement (for example you will receive a defined benefit pension) or will be in a higher tax bracket then currently, then TFSA should be maximized before investing in RRSPs
One question, can I use my RRSP and/or TSFA balance as collateral to borrow money? I ask because if that’s possible I could get free-tax money from them. Thank you.
Part 2 on more hidden ways to reduce taxes: ruclips.net/video/Up--Fu5YZgc/видео.html&ab_channel=TwainRyanLee
I am not a professional accountant but I think I know more about personal tax than 99% of Canadians. This video is very well made. Even I learned something from it.
Awesome glad you enjoyed it!
... ya, be a good slave
... income tax is extortion/theft
... go all cash income and stop paying slave tax which the government (govern=control/mente=mind....duhh)
@@TwainRyanLee
I am widow and have not worked in Canada. I have inherited my husband’s rrsp
How can I take out Money from rrsp with less tax cut?
Wow you so smart, loser.
Literally knew everything in this video that was applicable to me. So saved nothing. And guess what, I dont think i know more that 99% of most Canadians, you
Conceited nerd clown.
The fact that so many citizen don't understand these basic Canadian tax principles really highlights how preposterously complex it really is. If the government had truly built it for its citizens, it would've, at the very least, had it taught extensively in public schools. Right now the vast majority of people just wing it or delegate their reports to hired accountants, without understanding most of what's happening, to the detriment of their future financial health and security.
lol really? It’s not difficult to understand. It shows how preposterously lazy and dumb people are.
how'd you simplify it though? they didn't make it complex for fun, it's a cumulation of decades of policies designed to fit changes in economic conditions.
Tax law are complex for the reason that a lot of people will take advantage of it if it's not written that way. Same way criminal or any other law are complex, to prevent people from cheating the system and commit crime without being held accountable
This video should be taught to every single Canadian during high school (14-18) and AGAIN at 22-25 (and likely again at 30-40 "if" they reach Canada's new housing vaulting bar in the clouds)
Great video
Thanks glad it was helpful!
... ya, be a good slave
... income tax is extortion/theft
... go all cash income and stop paying slave tax which the government (govern=control/mente=mind....duhh)
@@VFX_My_Life it should, but it's not. For a very good reason.
Wonder why 😐🤨🤔
Instead They’ll continue teaching gender dysphoria.
@@amank.7052 It is a big task but for future generations this type of knowledge isn't "new tech" or an innovation, it is necessary knowledge (that should become common knowledge). Education system really needs an overhaul for financial education.
Very well explained. Should be mandatory for every Canadian to watch. I have never seen Canadian personal taxes so well explained. Kudos!
Thanks glad you enjoyed it!
I learned more in 25min than I ever knew about taxes. thank you!
Thanks glad it was helpful!
just missed one thing for RRSPS which is that yes it is 18% of your gross income, although it is up to a maximum set by the CRA (which this years is $31,560). Also, another great way to reduce your taxes payable each year is actually taking advantage of tax-exempt equity life insurance polices that allow you to dump in money just like a TFSA, except that there is no limit, is allowed to grow tax free, and also able to access that money without any tax! Great video overall.
Ok, I need more info on this, can you help me out?
Hi there, great video - I am an accountant. Everything here was great tips but in regards to employer matched RRSP contributions, these are added to income as a box 40 tax benefit and then deducted off - its a net zero game. Only the employees contribution truly reduces taxable income. Well put together video, well spoke and great presentation, keep up the good work!
The rise in tax rates is why I decided to roll over my 401k to a Roth IRA. I don’t want to be 59 and paying taxes on withdrawals from my retirement account.
Pre-tax contributions can help lower income taxes during your working years, while after-tax contributions can reduce your tax burden in retirement. Both have their advantages, but it’s also smart to save outside traditional retirement plans, such as individual investment accounts or with guidance from a financial advisor.
I completely agree. I'm in my mid-40s, getting closer to retirement, with over $2 million in non-retirement funds. I'm debt-free and hold relatively little in my retirement accounts compared to my total portfolio over the last three years. Honestly, you can't ignore the value of a good financial advisor-just make sure to do your homework and find a trustworthy fiduciary.
This is the direction I want to take with my finances as I prepare for retirement. Can you recommend the advisor who helped you get ahead?
This is a spam thread with a few bots "conversing" until eventually mentioning the name of a scam financial advisor that will appear legit but isn't. That's why someone is mentioning a 401k on a video about Canada.
Tax accountant here. There are some misinformation here on CCA on rental property, and I would generally be carefully doing income split outside of RRSP without talking to an actual CPA. Honest advice, if your tax involves complex topics (i.e. mutliple rental property, estate tax, any income splitting (other than RRSP), etc), speak to a CPA. Another thing, you can't "AVOID" tax, that's what GAAR (General Anti-Avoidance Rules) are for, you can use the tax deferral / saving method allowed by the CRA.
It’s wild how the ‘official rules’ never quite match the unwritten rules everyone actually follows.
@@Fatima_33 Until they get caught. This is an argument I often have with new clients, and always starts with "my friend said..."
Not all CPAs understand this shit. Most of them are garbage and lack understanding of the advance rules.
It's a clickbait video It's not meant to be taking literally.
@@ChefVlahosThis part especially. Especially with the newly enforced (rules were always there but not enforced) mandatory disclosure requirements especially when it comes to application of tax strategies within the ITA.
Since there's not gonna be a client that'll pay me 25k for the service.. why should we risk a 25K fine?
I have never heard taxes explained so well! I actually understood it for once lol 😊😅
Glad you enjoyed it!
Best Video for 2025 Taxes . Thank you & waiting for more of such videos .
Thanks for your kind words! More to come
I think you make a very good point with medical expenses. A lot of taxpayers don't know that. They think they can only claim the medical expense in the year its incurred.
It is a rolling 12 months. Just one of those odd rules
That depends on your total income. I earn over 100k per year, many years I tried to claim medical expenses and received nothing out of it.
It's a fairly significant number to start getting any relief. My wife and I both have autoimmune diseases and her diagnosis required travelling 100km each way to specialists a couple of times a month for a year. Usually we don't reach the threshold. We always track and file it though.
@@thevilifyingforce Yes its the lesser of 3% of your net income or $2,759 in 2024. You and your wife can jointly file your respective medical expenses on one return. The travel expenses count because its more than 40 km away from your house. That would include both vehicle and meal costs. Just vehicle costs alone I calculate $2,832 annually ($0.59 x 400 x 12)
@fantasyguru26 my apologies, I didn't provide enough context to the post. Something about my brain wandering away on me. We certainly did get a good claim that year, but usually we don't. Is I guess what I was trying to say.
Over paying taxes through payroll taxes, means you give the gvt an interest free loan. You should balance out by using annual calculators and work it back to weekly, biweekly. Also taking benefits and let company pay the vendor, means you sacrifice income. Benefits are taxable. Check out for an employer monthly parking benefit. There's not loss for both. You effectively pay the tax on he benefit which cash flow wise is cheaper than paying the monthly parking out of after tax pay. Effectively you paying your parking with pre-tax money. I had this benefit previously. It works like a charm
This was an extremely insightful video. Much more detailed than many others on YT for Canada. Keep these videos coming! You unquestionably earned a subscriber. Would love to learn more about Canadian small business tax deductions and the lesser known deductions.
Thanks I appreciate that! More to come
... ya, be a good slave
... income tax is extortion/theft
... go all cash income and stop paying slave tax which the government (govern=control/mente=mind....duhh)
I don’t think there is any youtube video out there that explains it so clearly. Looking forward for more such videos
Thanks a lot for the compliment!
... ya, be a good slave
... income tax is extortion/theft
... go all cash income and stop paying slave tax which the government (govern=control/mente=mind....duhh)
Dude, you're actually the best man. Thank you for such candid and engaging personal finances tips. You are doing all British Columbians and Canadians a great public service. Thank you.
Thanks for the kind words, glad you enjoyed it!
Just wanted to share this: RUclips has recommended this video on my home page for the last 4 days. I will click on it, like, and leave a comment so I don't get recommended this again. No problem for helping the algorithm. Have a good one.
Thanks!
One edit needed: CCA recapture is limited to the amount of CCA ever taken on the property (hence "recapture"). If you sold the property for more than the original cost, the difference is still a capital gain. So in your rental property example, there's a CCA recapture on the 100k of CCA taken to depreciate the property to 500k, and there's a 100k capital gain because you sold it for $100k more than the purchase price (700-600). You don't add the full 200k as recapture because there's only 100k of CCA to recapture in the first place.
i dont think hes an accountant, missing some knowledge, bet yet still trying to give advice to others lol
This guy doesn't know much, but he is a salesman, not an accountant. He didn't mention a few other things, like donating your publicly traded securities.
True and capital depreciation is only applied to the buildings but the not land portion.
@@Scyllusyou mean "not" the land part
@@robpet4424 good catch.
Woww I have never subscribed so fast in my life. Thank you for simplifying it enough for us normal folks to actually understand how to survive Canada 😅❤. I just landed my first job after university and want to be more financially successful soo can’t wait for more videos like this 💕
Awesome congrats on your new job and welcome aboard!
I was very much impressed by the knowledge included in this video, and he offered it all while not even once asking you to click subscribe, this or that. Like many other listeners I wish I had known all this 10 and 20 years sooner. Good job!
Thanks glad you found it helpful!
this is such good information. not enough youtubers are talking about CANADIAN taxes.
Thanks glad you liked it!
exactly! I watch podcasters like Dave Ramsey but it generally focus on American finances
FINALLY A VIDEO WITH ALL THE TRICKS TO HELP SAVE ON TAXES, now I share with my friends ty
Glad it was helpful!
Instant subscribe! Man youre simply too good at explaining the complex tax structures in simple words. Every question I had was answered in one video and learned many new things. Many thanks for sharing your wealth of knowledge 🙏
Really appreciate your comment and welcome aboard!
Dude that monstera needs some love in the background. Its screaming for wata haha.
Thanks for the info
This is by far the most directly impactful, knowledge full video I've watched on RUclips this year! OMG! Thank you, THANK YOU!
Please and please make MORE!
I'm subscribed now.
Superb pace of narration too.
Sometimes youtube can use its algorithm for good 😂
Thanks glad you enjoyed it! More to come!
This was so simple. You're saving me
money. Thank you man. Subbed.
Thanks for the support!
Great video Ryan! Thank you. I plan to integrate some of these breaks into my finances. I'm hoping we can get out of this decade of robbery and have a election soon. I have never been so broke in my life! 😮💨
Great video. Just one correction - recapture is only up to the original cost. So you will get $100k tax as orignary income (ie. Diff between your UCC and ACB) and the other $100k still as captial gain (i.e. diff between ACB and proceed).
This is the kind of stuff that I love to watch. Subscribed :)
Thanks. Welcome aboard
Thank you so much,clear,concise, one of the best video on this matter!!!You just gained a new subscriber and I ve already shared it❤
Awesome thanks, welcome aboard!
@7:32 - There's no withdrawal limit, but the withdrawal has to specifically be for purchasing a home though from what I understand. Correct me If I'm wrong.
That’s correct!
FHSA is great it just has a annual limit of $8000 when you first open it, and ONLY carries forward $8000 per year. Meaning if you open it this year and do not make any deposits for couple years it will cap at $16,000. So for everyone young adult here you can open an account but make no deposits just to have that room available. Also there is a lifetime limit of $40,000.
That’s right. The maximum Carryforward amount is $8000 and this is the max you can “catch up” in any given year
It’s very clear, well explained with examples, pros n cons… thank you so much
Thanks glad you enjoyed it
Thanks for creating this video, very helpful for people who are novice in this topic and also helps to provide and ask questions to their tax consultants.
Thanks!
this is the best financial video ive ever seen
Thanks for the kind words!
During my working years (retired now), I asked my HR payroll to take an additional $100 per pay (every two weeks) in extra taxes. I saw this as a form of "forced savings". I know it goes againts rules of investing right away, but because of a defined benefit pension at work I was limited in the amount of RRSP room due to the provision of pension adjustments. I was still able to maximize my RRSP contibutions (used my tax refund for RRSP contributions). But having the extra taken off had 2 benefits: (1) always getting a good tax return, and (2) since my take home pay was reduced, the actual gap between my income during my working years and my retirement income was smaller.
that was terrible idea. You could easily transfer your RRSP contribution to your spouse.
@@flashmedia8953 All of my RRSP contirbutions during my workinmg years were in the form of spousal contibutions. Since we are savers, we are both maxed out of TFSA contibutions.
I remember my mom explaining the tax bracket thing to me when she didn't get the raise that came with her increasing responsibilities. This is what her employer told her. Later she found out the women here were getting paid much less than the men and she left because of this. Fortunately there is pay transparency laws now but every time I hear this, it originates from an employer
It’s always better, to have an honest employer.
Despite my comments well made video keep it up we need more of people like you here in Canada
Clear , concise information in easy to understand way. Great video. I am going to binge watch your videos. Congratulations
Thanks glad to hear that!
Just watched your Video - Excellent ! : ) I have subbed ...
Appreciate the ''verbal'' as well as the ''power point'' parts of the vid also - Helps Me to [better] 'grasp' what you're saying / explaining by 'hearing' & ''seeing'' what you've just said !
Thanks again !! HAGD, Cindy : )
Thanks for the support and glad you found it helpful!
Thank you Twain. Someone who finds themselves unemployed but owes the government taxes from previous tax year and does not have said amount in the month to month operating banking account but does have investments. The question is; if one withdraws from the investments to pay the taxes, does the government still tax the full amount?
Yes the investments will still get taxed as usual, but they can apply for penalty & interest relief with the CRA if they’re experiencing financial hardship
@@TwainRyanLee Thank you
RRSPs are considered a "tax deduction" in the year they are claimed. In reality, they are a tax deferment until you are compelled to cash them in your "golden years," at which time they become taxable income.
That’s right!
not really. Your RRSP will mature at age 71. At that age, you can no longer contribute to your RRSP and you're required to take that money out. The best option you can do for this is to transfer your RRSP into RRIF. From your RRIF, you can have a minimal withdraw amount stated by the Federal government. Anything above the minimum amount will get taxed.
@@flashmedia8953 Yes really. RRIF funds count as taxable income in the year you withdraw them. Anything above the minimum is taxed right away (withholding tax) instead of like an annual income, but you still pay income tax on RRIF withdraws up to the minimum.
@@flashmedia8953You still have to include the RRIF income, minimum or not, in your taxable income.
@@flashmedia8953No, all RRIF withdrawals are taxable income!
the part about capital gains is insane, taking 100% of the the risk and getting sooo much money taken from the government while they had absolutely zero risk... just PAINFUL
Very useful video but I wish there was more information and content about any tax benefits from income from dividends and trust accounts.
You explain complex things very well, I somehow enjoyed this way more than I thought I would have 😅 subbed 👍
Welcome aboard!
Thank you so much for all these well explainded details!
Glad it was helpful!
Just the fact that he had to start with how the marginal tax rate works is a tragedy...
(Generally) poor people who have never broken out of the first tax bracket don’t understand marginal tax rates because they never had to experience it.
Go to South America to see what tragedy really is in society 😣
This is an incredible video, information-dense and super helpful! thank you so much!
Thanks glad you enjoyed it!
Excellent video Twain! Clear, concise and understandable - thank you! I jumped on midstream and with the US dollars in the video I initially thought info was US based. I thought this might be worth a mention but glad that I hung in to see the rest of your presentation. Great job!
Thanks for hanging in there and glad you enjoyed it!
0:44 It still blows my mind how many people don’t understand this.
Thank you so much for your research and sharing your knowledge with us. There's so much information about the states not too much for Canada. I appreciate this video very much ❤
You are so welcome!
... ya, be a good slave
... income tax is extortion/theft
... go all cash income and stop paying slave tax which the government (govern=control/mente=mind....duhh)
This was amazing! Would love for more on this content. May I ask, what’s the document noted on 19:49?
Thanks glad you enjoyed it! Here you go: www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4036.html
I believe this is the best video on tax savings I have ever seen. Thank you!
Awesome really appreciate it!
He missed a lot of important things, and screwed up others. But that is to be expected. Never take your tax tips from a salesman.
@@t2p5g4 like what?
Great video!!! Tons of useful info!
Happy it helped!
Is the Group RRSP different from my personal RRSP?
Group RRSP are set up by your employer and usually provides 1:1 or partial matching for contributions
When I worked for a certain company about 30 years ago they had set pay raises that were triggered when certain criteria were met. But one particular raise amount was withheld for some employees because their net income would have went down, even after filing taxes. The company would wait for the next trigger for the higher raise amount. It does happen but it is rare. It is not a myth.
All part of the wage suppression scheme killing the middle class as the rich get richer
What is the name of the 50 page cra document your were referring to?
It’s CRA’s guide to rental income: www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4036.html
Your script was very well formatted, as soon as some pointers needed an explanation - it followed. Nice video!
Glad you enjoyed it!
That first point, I had a client who had an employee that refused a raise because he didn't want to pay more taxes. My client is a good guy so he asked me to do up two different paystubs for the employee so he could see the difference.
Your client is a good person haha. Too many people have missed out on pay raises because they didn’t fully understand how it works
Can't find much fault with what you said, except for the CCA recapture on the rental property. With depreciable properties, the POD for CCA purposes cannot exceed the original capital cost. In this case, $600K. This means that the recapture is only $100K. However, because you sold it for $700K and the cost is $600K, you have a capital gain of $100K. This capital gain is included in income at 50%, so the total amount of income to be added to your taxable income for the year from selling the rental property is $150K, not $200K.
Thanks for sharing this information-it was incredibly helpful and gave me a real confidence boost in understanding how to file my taxes here in British Columbia! Navigating tax regulations can feel overwhelming, but your guidance made it so much clearer. I feel much more prepared and informed now-appreciate the support!
You are so welcome!
... ya, be a good slave
... income tax is extortion/theft
... go all cash income and stop paying slave tax which the government (govern=control/mente=mind....duhh)
Amazing thank you so much for promoting tax relief for the Canadian tax system. Bless you brother love this.
My pleasure! Glad it was helpful
Thank you a million times for sharing such an educational video!
Thanks love to hear this!
Question: do you have a video specifically on TFSA … and if profits made from this account by shares they are considered as revenue to declare ?
Thank you, what an excellent video you made! I will be sharing this with my friends.
Just a thought, have you considered doing a video for those of us in Quebec? I'd love to see that.
This was fantastic!
Glad it was helpful!
Great video and very informative. Much appreciated! Subscribed!
Thanks for the support!
I heard that if you are regular ‘giver’ and donate a significant amount, say 10% or more of gross income, you can then ask your employer to apply a lower tax bracket to your paycheques. You of course get a lower refund on your tax return, but you have more cash in hand throughout the year. Is this true?
You should include the Working Income Tax Benefit, which is a life-saver for lower income Canadians!
Awesome video and superb quality content
Glad you enjoyed it
As a self-employed household, you cannot deduct 100% of your purchases as write offs; try 50%. You still shell out at least half. You also pay for your own dental/eyes/prescriptions, etc., unlike 'employees' as well as no Vacation Pay. We pay in to CPP and ALWAYS owe taxes.
Thanks, great video. A lot of things I learnt and I’m 32 years old. Wish I knew this earlier
Thanks glad it was helpful!
Nice, well explained video. My spouse and I are retired and have a tfsa and each collect pensions. One of the our pensions is greater than the other so we pretty much just use income splitting to save on taxes. Medical expenses may also be available this year so it was good to hear your information on that. Thanks.
At 22:55 he said taxable income would be 200K when you depreciate. This is not 100% correct. It is actually broken up into two parts: Recapture and Capital gain. His recapture would be 600K purchase price less UCC of 500K= 100K added to income. Then the Capital gains would be the 700K sale less 600K purchase = 100K capital gain, then we take the 50% inclusion so we will then have 50K in taxable capital gain.
Came to the comments to point out this error.
This is big brain, dense video. Subbed
Thanks for the support!
Regarding tax deduction in good debt.. what examples of investment would you recommend that can be paid from a personal line of credit?
Superb video. So much actionable advice!
Glad it was helpful!
Would you be able to make a video talking more about 24:50? Thank you for the wonderful content!
Are you a CPA, or a Licenced Public Accountant? Just wondering.
I’m a financial planner
@@TwainRyanLee OK. You seem to have a lot of knowledge.
Is there any way to claim the cost associated with installing solar panels on a home?
So I’m sole proprietorship I should be manually setting aside tax for the CRA according to my annual income bracket?
absolutely!
Thanks for that important education content
Glad it was helpful!
What’s your thoughts on transfering candian funds using Norbert’s gambit and having my Canadian money invested in us etfs and stocks instead?
It’s a great way to do currency exchange, just be careful of currency fluctuations when going from USD to CAD. Here’s a good video on the Norbert’s gambit: ruclips.net/video/3HelwubpgWY/видео.htmlsi=V8KkA9GtxqPksa1-
The video is very useful. But I want to ask what CRA 50-page publication is. Can you provide me that pdf copy so I can refer it.
Thanks! Here you go: www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4036.html
My friend is annoyed that he has to pay at the end of the year, and no amount of explaining will convince him that this is preferable to a big refund.
Preferred?? Right.. most people are living paycheck to paycheck and are not expecting, let alone saving for a big payment come tax season. The marginal increase in pay over 26 pay periods will go unnoticed if not enough is taken off through the course of the year
@@James-jk3ei If you want to give the govt a tax-free loan then why don't you go to HR and have them withhold more tax? And please, do you know how many rich people there are? More than 40% own their homes outright. 800 dollar a month car payments and $150 a month cellphone plans are self-inflicted. The AVERAGE tax refund is ~$1000, and that number is kept down by the smart individuals, you think >100 bucks a month will go unnoticed by the 'paycheck to paycheck' people out there?
@@Roof_Pizza avg = $1000/yr so 83.33/mo or $41.66/paycheck.. it's peanuts.
"Building wealth is like climbing a mountain; investing is the steady ascent, retirement is the summit."
Can you please explain the Smith Maneuver.
The income we put into the RRSP account...will never be paid back to us...
I believe that your calculation of the taxable capital gain on house sale may be incorrect. The $100,000 recapture is income, but the $100,000 gain over purchase price is the taxable capital gain, which is reduced to $50,000. But did the CRA not recently change the capital gain inclusion rate fron 50% to 2/3 ?
Yes, rate is proposed to change but has not yet been voted in the house.
@@karend.9218 I am surprised that there is not the opposition I expected. I guess Justin doesn't want to raise the tax before an election.
@@cruisecrazy7066the 2/3 inclusion rate only applies to amounts over and above $250,000 gain
They changed the capital gains rate for personal income from 1/2 to 2/3rds with gains over and above $250,000. The first $250,000 still has the 50% inclusion rate so the $100,000 falls into that.
The new inclusion rate only applies to higher income folks.
Hey I just wanted to know if I sell cryptos and alt coins in canada and how much total percentage of amount do I need to pay of profit?
also, if I sell them and transfer those money in TFSA account still I need to pay tax?
Thank you.
For non-reg accounts, 50% of the gains will be taxed at your highest marginal tax rate. Selling them will trigger taxes, putting it into TFSA just allows it to grow tax-free thereafter
@@TwainRyanLee thank you so much for your quick response
Thank you for the informative and comprehensible video! We need more Canadian finance RUclipsrs. Keep up the great work ! 👍
Thanks, more to come!
If medical costs sum to greater than 3% of income, but those costs were reimbursed by medical insurance benefits, can we still reduce our income by that amount? Also, does the cost of insurance premiums count as a medical cost?
Only out-of-pocket costs can be considered as medical expense, so if the costs were reimbursed then it cannot be claimed. Premiums paid by yourself to private health insurance plans can count as medical expense
Thanks for the video. Which one is priority? RRSP? Or TFSA?
Depends on your income. High income (eg high tax bracket) use rrsp. Lower income use tfsa. Or both if you can.
If you anticipate having significant income in retirement (for example you will receive a defined benefit pension) or will be in a higher tax bracket then currently, then TFSA should be maximized before investing in RRSPs
Do you have a video for business owners who pay themselves with dividends not salary?
This is a topic applicable only to people who run their business through a corporation. It was not addressed in this video at all.
Does this also count for a business corporation and HST tax?
Also how do you calculates the brackets when you live in Quebec where you have to declare your taxes for both gouvernement.
One question, can I use my RRSP and/or TSFA balance as collateral to borrow money? I ask because if that’s possible I could get free-tax money from them. Thank you.
Hi, can you please explain how contributing $10,000 to an RRSP equates to a tax refund of $2,912? Thank you!
Correct me if Im wrong but for rental properties you can only deduct the percentage of costs for the portion that you do not live in
You’re right!
There must be a certain amount you must charge a tenant, otherwise you could rent at a low rate and claim higher expenses?