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Of course, one optimal way to lower taxes is to invest in tax-sheltered accounts. You live in your primary residence 2 of the last 5 years, and you get 250k single or 500k married. And the savings from the investment tax cuts are expected to be larger in subsequent years because of gains in the stock market. Investors in LSIFs are eligible for fairly generous tax credits that are not available to investors in other mutual funds. These blog compilations include Don't Mess With Taxes entries. The old rules stated that you would have to reinvest. Naturally, the topic of investment taxation could itself fill a book.
The Dividend Tax Credit provides preferential tax treatment of dividend income for stockholders of Canadian resident corporations. Tax shelters allow a taxpayer to make larger deductions from income than they would be able to otherwise. Comments are moderated, and will not appear on this weblog until the author has approved them. Great review! I look forward to posting mine on monday. Congress is now debating whether to make the Bush tax cuts permanent. So authors Taylor Larimore, Mel Lindauer and Michael LeBoeuf wisely opt for an overview to familiarize readers with two important tax concepts.
Interest income is effectively reported on an annual basis even if it is not received in a particular year. This does not allow a reduction to the amount added to the tax liability. Regardless of the type of fund, the income earned retains its character for tax purposes when distributed to the unitholders.
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