5 Simple Things EVERYONE Can Do To Reduce Taxes In 2023 // Canadian Tax Planning
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- Опубліковано 22 чер 2024
- 5 Simple Things EVERYONE Can Do To Reduce Taxes In 2023 // Canadian Tax Planning
If you're a beginner investor or just looking for some tips and tricks, consider downloading my FREE e-book specially made for Canadian Finance: www.canadianfinancepro.com/be...
This video briefly breaks down how Canadians can reduce their taxes for the upcoming year. The Canadian tax system is cash based, meaning you usually have to prepare during the actual calendar year, once the year is over, nothing can be done to fix or optimize your tax situation.
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Hey guys, welcome to the channel I'm a full time Chartered Accountant as well as a part time Real Estate agent with a background in finance, investing, budgeting and of course, real estate.
I've been on a personal mission for the last 10 years to build multiple streams of income, including both passive and active income. On this journey, I've gained a ton of domain knowledge about personal finance and investments that I would love to share.
My goal for this channel is to help you understand basic taxes, personal finance, investing, budgeting and expense management.
If you're a beginner investor or just looking for some tips and tricks, consider downloading my FREE e-book specially made for Canadian Finance: www.canadianfinancepro.com/beginners-investor-handbook
any tips on taxes saving in crypto?
Great post as per usual, thanks for this
Glad you enjoyed, thanks for the support.
New lens looks amazing man!
😀😀
Really helpful video...short and to the point. Thanks!
Glad it helped.
💡 *Superficial Loss Loop hole- example if you own a S&P500 ETF like VSP you can sell it to claim tax loss and just buy back another S&P500 ETF like XSP*
haha good point, thats real
good video idea thanks
😁
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks
@@DIANNE-g However, if you do not have access to a professional like JUDITH ANN PEACE, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments
@@JOSHUAINN Oh please I’d love that. Thanks!
@@DIANNE-g Judith Ann peace is her name
Lookup with her name on the webpage.
good information! any more options videos coming out?
I'll start doing options again, I stopped filming because nobody was really watching, the Options videos had such low views.
Very niche but the demand will grow soon for it. @@CanadianFinancePro
Great video Bassem! Does the superficial loss applies also to the options you rollup or down for a loss, such as ITM covered calls ot CSPs?
Yes but it has to be the same option, same expiration, same strike etc etc. Different dates are a different option.
@@CanadianFinancePro Perfect! So same strike but expiring next week would be ok, right? Hopefully? 🤣
Thanks for the video Bassem! I know you mentioned that its your personal opinion to max the TFSA before RRSP if income is less than 80K but I see that the federal tax bracket from over $53,359 up to $106,717 is HUGE and I think if I am not expecting to make around 100K anytime soon, why wait to cut my taxes and not start investing now and also invest the tax refunds I am getting in RRSP. (In Ontario, the second tax bracket also ends around 100K) - thoughts? I do contribute to RRSP after maxing my FHSA as my goal here is to use FHSA + HBP from RRSP to buy a house in the next 2-3 years.
I guess if you're going to use it for a down payment on a house, that could work, you're saving more in the short term. I just think: the tfsa will end up giving you more, after tax, over the long run. When you finally withdraw your rrsp when you retire, its taxed, the tfsa isn't taxed. The whole point of the rrsp is: pay into it when you're at a high tax bracket and withdraw when you're at a low tax bracket to permanently escape tax.
Great video, Bassem. And awesome lens! On the TFSA vs RRSP topic: would you still advice folks who earn more than 80k to use RRSP, even if they haven't max out their TFSA? Considering that there are another 20-25y before retirement
Thanks! Just looking at the RRSP, the benefit is 'we get back some tax at our CURRENT rate'. If you're under $80K, let's say you make $50K, your tax bracket is 25% ... The tax savings now of 25% dont provide as much benefit IMO as a tfsa. When you withdraw your rrsp, you're paying tax on it. When you withdraw your tfsa, no tax. For me, to make the rrsp worth it. I would want at least 33% tax savings, which is around the $80K mark. The more you earn, the bigger the RRSP benefit. If you make $150K/year, the tax is 50%, so, the rrsp benefit is 50% tax savings/deferral, which is huge.
@@CanadianFinancePro Thanks, Bassem! It makes sense. I was reluctant to use RRSP at the mid part of my career (when I still have a few decades of salary increase, and thus a better RRSP tax benefit prospect in the future, and lots of room on TFSA). But as you said, it makes sense to start to max out RRSP after 80k and use the TFSA for any spill over cash
Great Video, can you make video for students? How international students can save more in Canada as it is very hard to even save a penny.
Thank you for touching on the charitable donation topic! I do have a question; if I donate money to someone in need from my company without getting a tax slip, can it still go through the company or does it become a personal expense?
Hm, we'll need proof it was actually a donation, it has to be to a registered charity, otherwise, its just a gift of cash, which is not tax deductible. This rule is to close the loophole of everyone giving gifts of cash (but not really) and claiming huge deductions.
Hi @canadianFinance PRO, I am on the higher side of the tax bracket in Quebec and arrived here a year ago. I have already maxed out my TFSA, RRSP, and FHSA. Now, in 2024-25, I am planning to buy a house. May I know if CRA will allow me to take out funds from these three accounts? Also, is it okay to max out these three accounts? Apart from this, as the US market is booming, I have seen around a 10% increase in shares through FHSA, RRSP, TFSA, and Non-Registered too. How do you suggest I save on capital gains? Thank you for your advice.
Hey, your 3 accounts are tax free, you can avoid the capital gains. Also, just a note for the future, once you've made a gain, you can't really fix or adjust or reduce your tax payable. You have to plan IN ADVANCE of making the move.
Hi Bassem please guide on the Tax deductable Mortgage with Smith Manouver - the dividend stocks you suggested Top 3 Canadian ETFs For 2024 // Canadian Passive Income can be used ? please guide - thank you
Quick question , I have pension plan with my employer where they contribute match (DCPP) , is that same as RRSP
Kinda, its actually better than an rrsp, but same idea
Does buying ad space count in your deductibles?
Yes it is an expense incurred to earn income. That's advertising/marketing expense.
TFSA has deadline as RRSP?
It increases annually, but you dont lose your room.
What do charities do with donations?
Well let's just say aggressive spending on themselves. Catered lunches, every meeting had to be catered. All employees were given max bonuses even when they're not performing. The offices were extremely expensive and well designed, all using donations, instead of the actual purpose.
Good content … flat rate method not applicable for 2023
Yeah I saw that after .. I was banking on getting another kick back this year ...
FHSA??
my salary doubled during the summer and my tax bracket is much higher now so i also doubled my rrsp contributions
That's crazy, doubling your salary is impressive, congrats! What field if you dont mind me asking?
@@CanadianFinancePro software engineering. to begin with, my previous salary has been below market average as i was working for public sector. i went to private sector and got surprised at how low my public salary was. lol
That's so good, hopefully your spending doesn't increase along with your salary :p Lifestyle creep is sneaky.@@aaronalquiza9680
@@CanadianFinancePro it's very tempting but my wife and (not to blow smoke up your bum) videos like yours and many others on youtube give me guidelines to be more financially responsible. so thank you. and keep it up for the next generation.
haha I'm glad they're helping some people, at least :p @@aaronalquiza9680
imposible
possible
Whaaat do business owners qualify for the WFH credit?
haha you know they don't :p
@@CanadianFinancePro a girl can dream
Very helpful thank you.. new subbie here
Welcome!@@SimplyShineLV
First
notification gang!
Or you could just quit giving your lunch money to bullies