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#1

Gaming HQ / Re: The Miscellaneous PC & vid...

Last post by FunkMonk - Today at 05:05:15 PM

Fellow lovers of democracy. We must liquidate 2 billion bugs to ensure the survival of our way of life. Who is with me?

#2

Off the Record / Re: [Canada] Canadian Politics...

Last post by crazy canuck - Today at 04:39:33 PM

I need to read more about that.

they are raising the exemption threshold so that is good.
They are taxing more the sale of rentals and secondary homes, so that is good.

The rest, I'm not sure of what I'm reading.

This reminds me of the discussion in the UK thread.  The government has stated that they wish to create incentives for the creation of rental properties.  They cut the GST and increased amortization rates for those purposes.  Now taxing properties built for rental when sold seems to run contrary to the policy objective of getting people to invest in the creation of more rental properties.  Why would I do that when I am going to be hit with a larger capital gains tax?  And again, realize that this is mainly corporations doing the building and now the inclusion rate just went up for them on the very first dollar of capital gain.

#3

Off the Record / Re: [Canada] Canadian Politics...

Last post by crazy canuck - Today at 04:34:52 PM

In theory your RRSP is taxed at a lower rate when you retire because you're in a lower tax bracket. So you reduce your tax burden when you're working and get lower taxed income when you retire. That doesn't always work out, especially as life gets more expensive and people live longer.

True, but there are mandatory amounts that must be withdrawn from the RRIF.

That brings me to another move the government made regarding their new definition of a bare trust.  My father in law must draw money from his RRIF.  My wife has power of attorney and manages all of his money and does all his banking.  The financial institution set up a joint account for the two of them to facilite her managing his finances, paying his bills etc.

Now guess what, it is now deemed a bare trust, and we get to the pay the taxes on the account at my marginal tax rate!!!!

#4

Off the Record / Re: [Canada] Canadian Politics...

Last post by crazy canuck - Today at 04:29:52 PM

My RRSPs will also be taxed when I retire. So I'm not gonna worry too much about a business owner being taxed on his million dollar business he sells when he retires.

People who earned all their income as employees will likely not be affected.  Those folks probably have all of their retirement savings in RRSPs, which will be converted to RIFFs.  Or, if really lucky had enough savings to also use TSFAs.

But we are talking about small business owners who probably didn't recieve much by way of salaries, and so did not have the same opportunity to amass much in the way of RRSPs, but built up the value of their businesses instead.  And they need not be "million dollar businesses".  The increase tax rate for corporations kicks in at dollar 0.  And if the small business owner had good tax and legal advice at the time, the owner should be owning the shares in their company in a holding company.  Why, because that is the why the government has been encouraging people to do it for the last 25 years or so. 

A lot of small business people are going to be hurt by this because the nest egg they thought they had built up is now worth a lot less to them after tax.

And remember this is not just about shares in a company, there a lot of properties throughout Canada that are about to change hands.  That will all be fully taxed in the hands of the beneficiaries after the 250k amount.  Which all properties in Canada.

#5

Off the Record / Re: [Canada] Canadian Politics...

Last post by HVC - Today at 04:19:25 PM

I think it's 7k now? It's cumulative though, right? You can add in the current year any unused cap amount from previous years?

#6

Off the Record / Re: [Canada] Canadian Politics...

Last post by Barrister - Today at 04:11:09 PM

TFSA works like that. Qualified investments using TFSA don't incur tax either.

Yeah.  You put money into a TFSA (Tax-Free Savings Account) using after-tax money, but then any gain comes out tax-free.  There's a max annual limit.

#7

Off the Record / Re: [Canada] Canadian Politics...

Last post by Barrister - Today at 04:10:22 PM

If my government-run pension plan goes tits-up I'd be completely screwed.

It your government-run pension goes tits-up, you will have other problems to worry about by then...

Very true.  Which is why I haven't bothered to try and have BOTH a full government pension plan PLUS a well-funded RRSP.

I mean yes, then I'd be doubly protected.  But that would come at significant personal cost now, plus if my government plan goes tits-up there's a good chance the stock market does the same anyways.  And I don't need a double-pension when I hit retirement - what would I do with it at that point?


(Is "tits-up" an offensive phrase?)

#8

Off the Record / Re: [Canada] Canadian Politics...

Last post by HVC - Today at 04:02:14 PM

TFSA works like that. Qualified investments using TFSA don't incur tax either.

#9

Off the Record / Re: [Canada] Canadian Politics...

Last post by Admiral Yi - Today at 03:56:37 PM

In theory your RRSP is taxed at a lower rate when you retire because you're in a lower tax bracket. So you reduce your tax burden when you're working and get lower taxed income when you retire. That doesn't always work out, especially as life gets more expensive and people live longer.

Plus your capital gains and dividends are not taxed.

Do youse guys have an equivalent to the Roth IRA, where it's taxed on the front end as income but not taxed when you withdraw it on the back end?

#10

Off the Record / Re: 2024 US Presidential Elect...

Last post by Sheilbh - Today at 03:53:16 PM

I think your thesis is correct, that video has a larger impact this day and age. It'll be interesting to see how the upcoming deluge of fake video will impact this.

Yeah was listening to something about this. Maybe we're moving out of an age of implicit trust and faith in the image and primacy of the image over the word since photography (not that we ever should have trusted it but...)