Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP
Posting-Version: version B 2.10.2 9/18/84; site lsuc.UUCP
Path: utzoo!lsuc!dave
From: dave@lsuc.UUCP (David Sherman)
Newsgroups: can.general,net.taxes
Subject: Get an RRSP
Message-ID: <395@lsuc.UUCP>
Date: Tue, 12-Feb-85 18:27:20 EST
Article-I.D.: lsuc.395
Posted: Tue Feb 12 18:27:20 1985
Date-Received: Tue, 12-Feb-85 19:00:31 EST
Reply-To: dave@lsuc.UUCP (David Sherman)
Distribution: can
Organization: Law Society of Upper Canada, Toronto
Lines: 32


With the March 1 deadline approaching, I thought I'd
mention the RRSP tax shelter. Many people think tax
shelters are only for the rich, but believe me, the
RRSP is for just about everyone. (In general, the only
reason you would not want one is if you're in a low bracket
this year and expect to be in higher brackets indefinitely
into the future.)

The workings are simple: you can deduct up to 20% of your
earned income, to a maximum of $5,500 ($3,500 if you're in
a company pension plan or DPSP). If you contribute by March
1, you can deduct for 1984, and get your refund sometime this
spring. The value of the deduction depends of course on your
marginal rate. (For example, on $12,500 of taxable income
your marginal rate is about 30%; on $23,000 it's about 37%.)

All interest accrues in the plan free of tax until you take it
out, which can be anytime. If you're married and planning on taking
off time to have kids sometime in the future, then's the time to
plan to take it out (if you time it right, the husband can get
the deduction and the wife, two years later, the income taxed at a
much lower rate).

Last year's fun and games was R&D tax credits, but those are
gone now (in the quick-flip format). So the RRSP is about the
only easy and risk-free things left. Don't miss out!

David Sherman
-- 
{utzoo pesnta nrcaero utcs}!lsuc!dave
{allegra decvax ihnp4 linus}!utcsrgv!lsuc!dave