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.
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.
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.
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!
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)
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.
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.
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.
Election is one of those things that could really contribute to portfolio growth and vice versa. I've been going hard with my investments this year and have been able to build up to 180k. Are there tips I could apply to help me grow my portfolio even more during this election season?.
Well detailed video. Things are a bit strange right now. Inflation is making the dollar weaker for buying things like basic needs, but it's getting stronger against other stuff. So, stuff like stocks, houses and precious metals aren't doing so great because folks are putting their money into banks for safety but I'm worried about my retirement savings losing value fast
If you are in cross roads or need sincere advice on the best moves to take now its best you seek an independent advisor who knows about the financial markets. It's better to hire a skilled financial planner especially if you're not one yourself. I hired one, after my retirement pension took a hit in April due to the crash
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
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.
... 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)
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
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!
This is by far the most directly impactful, knowledge full video I've watched on UA-cam 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! 😮💨
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.
Just wanted to share this: UA-cam 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.
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.
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.
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
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
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.
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.
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.
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.
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.
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.
Is this true?: If you did not claim any depreciation, the tax authorities (like the CRA in Canada or the IRS in the U.S.) still assume that you could have claimed it. This is called allowed or allowable depreciation, and you may still face depreciation recapture based on what you were eligible to claim, even if you didn’t take advantage of it.
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.
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 this great video. My employer operates a lock-in work/group RRSP account where I contribute and the employer matches my contribution. 1) Will my contribution to this group RRSP reduce the contribution room in my personal RRSP account? 2) If I choose to increase my contribution to the group RRSP in order to reduce my taxable income, will the extra contribution reduce the contribution room in my personal RRSP account?
@@TwainRyanLee Thanks for your timely response, sir. But I read on some online platform that contributions to a work/group RRSP, where contributions create a pension adjustment (PA), are tracked separately by the CRA and does not reduce the contribution room in personal RRSP? I am not sure how true this is or how it works.
Thank you for the great information you provide on yor videos. I'm 65 retired still working but getting CPP. My husband 68 retired also getting CPP. Can we split income since he's cashing out his RRIFS even though i still work? Can a pension from abroad be split? I do appreciate your help.
Yes he can split RRIF income to you but you need to consider both your marginal tax brackets to see if it’s worth doing. Pension income from abroad can be eligible for pension splitting as well!
@@TwainRyanLeewow thank you for your quick response. For this year it's not worth it to splitt but I needed to know if i should quit my work before end of December or work a few more months as I planned. From some other videos I saw on UA-cam I was under the impression if a have a pay cheque in 2025 i would not be able to do the income splitting.
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)
For RRSP withdrawals taxes will not be deducted if the purpose of withdrawal is LLP life long learning plan and First time homes buyers plan. The bank will ask you these questions when completing the form.
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!
(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.
2:40 This sounds like misinformation. There are detailed payroll tables for every pay amount and pay period type (daily weekly monthly etc) for all of tax, CPP, EI and QPP, right to the penny, and all payroll software uses these tables, which are among the first next-year info to come out in any given year. Nobody takes "a little bit extra". You get a refund becase your non-refundable tax credits reduce your taxable income, which was taxed at what you made, so you end up paying more taxes than you have to most of the time. If NRTC's were factored in to tax rates no one would get a refund.
i dont know in what province you live but here i ask my employers to take 0.00 to give to the gov. i put aside what i will need to pay when i get asked for it. Also in my province when you can ask your employer to take a certain amount of what you want them to put aside for the refund if you should have one.
iv been dirt poor most of my life so i never gave any of these "savings" account a single thought. Living pay cheque to pay cheque such things are a luxury. I did luckily manage to open a TFSA a couple years back...I've managed to maybe put in about 5k a year, which is slow as shit but at least I have a small next egg now in case I become unemployed or run into some emergency. Years ago if I became unemployed I would be royally fucked with nothing to fall back to. I didn't have a family I can just go back home to and crash, nah I was going to be homeless and out on the streets. Thank god, I managed to survive the darkest days...I had just enough money to survive 1 more month before I was out of options, luckily managed to land some crappy job that allowed me to live.
On a more happy note, i've finally ended up with a good job about a year ago and now make about 50k a year, which i'm extremely satisfied with...gives me so many options I never had before. Will finally start looking at those rrsp and other savings options since they are more in the realm of possibilities now.
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: ua-cam.com/video/3HelwubpgWY/v-deo.htmlsi=V8KkA9GtxqPksa1-
I’m 70 and retired and have money invested with Edward Jones. It’s a reasonable amount , but not a lot ,if that makes any sense. I don’t trust the markets in the upcoming months and want out for a while. What is the least expensive way in doing this, and how?
Hi Lee, thank you for providing such valuable content. I had one question. For the contributions that I make My company will contribute to the DPSP account instead of the RRSP account and it says withdrawal is not possible in DPSP account. Any idea on this?
DPSP is basically locked in until you leave the employer, when you leave you have the option of doing a transfer to RRSP without triggering taxes, or you can make a withdrawal but it will trigger taxes
People who do not understand simple fractional math and refuse a raise because they'll pay more in tax deserve their station in life which is dwindling away slowly
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.
I never get a refund because I didn't ask HR to pay Max tax. So end of year I have to pay CRA. I'd rather have the money with me to invest instead of giving it to the government to waste for that year.
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?
Excellent researched video. Knew some of what you said but learned a lot as well! I am a higher income earner than my wife so yearly I give her the maximum four her tax savings account since I have already maxed out my own, but I have never done the”loan” you speak of and simply transfer the money into our account for her to invest. Hmmmm, your thoughts would be appreciated.
Im single, no kids, family. Funny, I'm in lower tax bracket, under 50K have a small PSP, I opted to collect CPP at 62 to supplement my income, No raises in my company in past 5 years. Wham! ! tax time, I ended paying CRA $3,000K. I asked why, because I'm at highet tax bracket now. There is no break for single people. I can't even start drawing down RSP now more taxes . I literally have to retire, be broke before drawing my RSP.
How can I invest using my credit card ? What that means ? Instead of using e-transfer for deposit, use the credit card for the deposits? Or what ? I only have TFSA . Thanks
I feel like this is more about deferred than actually paying less! Myself I am now a Mexican resident and will be working on setting myself up to NOT pay Canadian taxes anymore.... I pay well over 15K on 75/self employed income + you have to factor in BC taxes at 12% on almost everything....and on and on.
Part 2 on more hidden ways to reduce taxes: ua-cam.com/video/Up--Fu5YZgc/v-deo.html&ab_channel=TwainRyanLee
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!
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.
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?
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.
I learned more in 25min than I ever knew about taxes. thank you!
Thanks glad it was helpful!
I have never heard taxes explained so well! I actually understood it for once lol 😊😅
Glad you enjoyed it!
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!
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)
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.
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!
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.
Election is one of those things that could really contribute to portfolio growth and vice versa. I've been going hard with my investments this year and have been able to build up to 180k. Are there tips I could apply to help me grow my portfolio even more during this election season?.
Well detailed video. Things are a bit strange right now. Inflation is making the dollar weaker for buying things like basic needs, but it's getting stronger against other stuff. So, stuff like stocks, houses and precious metals aren't doing so great because folks are putting their money into banks for safety but I'm worried about my retirement savings losing value fast
If you are in cross roads or need sincere advice on the best moves to take now its best you seek an independent advisor who knows about the financial markets. It's better to hire a skilled financial planner especially if you're not one yourself. I hired one, after my retirement pension took a hit in April due to the crash
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
Thank you for putting this out, it has rekindled the fire to my goal
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!
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)
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
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 by far the most directly impactful, knowledge full video I've watched on UA-cam 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!
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! 😮💨
FINALLY A VIDEO WITH ALL THE TRICKS TO HELP SAVE ON TAXES, now I share with my friends ty
Glad it was helpful!
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.
Just wanted to share this: UA-cam 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!
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
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!
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
Clear , concise information in easy to understand way. Great video. I am going to binge watch your videos. Congratulations
Thanks glad to hear that!
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
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.
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.
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
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.
this is the best financial video ive ever seen
Thanks for the kind words!
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
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!
I would consider myself pretty knowledgeable, but this video showed me a few tricks I didn't know about.
This is an incredible video, information-dense and super helpful! thank you so much!
Thanks glad you enjoyed it!
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.
This is the kind of stuff that I love to watch. Subscribed :)
Thanks. Welcome aboard
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
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.
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
Is this true?: If you did not claim any depreciation, the tax authorities (like the CRA in Canada or the IRS in the U.S.) still assume that you could have claimed it. This is called allowed or allowable depreciation, and you may still face depreciation recapture based on what you were eligible to claim, even if you didn’t take advantage of it.
Great video and very informative. Much appreciated! Subscribed!
Thanks for the support!
Despite my comments well made video keep it up we need more of people like you here in Canada
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!
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?
Thank you a million times for sharing such an educational video!
Thanks love to hear this!
You explain complex things very well, I somehow enjoyed this way more than I thought I would have 😅 subbed 👍
Welcome aboard!
Regarding tax deduction in good debt.. what examples of investment would you recommend that can be paid from a personal line of credit?
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)
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.
Tax in Canada is crazy high and complicated. Thank you for the video
It really is!
Thank you so much for all these well explainded details!
Glad it was helpful!
Very useful video but I wish there was more information and content about any tax benefits from income from dividends and trust accounts.
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
Great video!!! Tons of useful info!
Happy it helped!
Excellent video. Please talk about the home owners who leave in their home and rent and those who don't rent what are the benefits?
Thanks for this great video. My employer operates a lock-in work/group RRSP account where I contribute and the employer matches my contribution. 1) Will my contribution to this group RRSP reduce the contribution room in my personal RRSP account? 2) If I choose to increase my contribution to the group RRSP in order to reduce my taxable income, will the extra contribution reduce the contribution room in my personal RRSP account?
yes and yes. also your employer matching will also reduce the contribution room
@@TwainRyanLee Thanks for your timely response, sir. But I read on some online platform that contributions to a work/group RRSP, where contributions create a pension adjustment (PA), are tracked separately by the CRA and does not reduce the contribution room in personal RRSP? I am not sure how true this is or how it works.
Remember it's locked in. Just match the maximum the employer gives you and don't over contribute in the plan. Invest somewhere else.
Just be prepared for tax claws once you start to draw RSP..
I hate RRSP, wish I never started. TFSA way better, not taxable and earn more.
Thank you for the great information you provide on yor videos.
I'm 65 retired still working but getting CPP.
My husband 68 retired also getting CPP.
Can we split income since he's cashing out his RRIFS even though i still work?
Can a pension from abroad be split?
I do appreciate your help.
Yes he can split RRIF income to you but you need to consider both your marginal tax brackets to see if it’s worth doing.
Pension income from abroad can be eligible for pension splitting as well!
@@TwainRyanLeewow thank you for your quick response.
For this year it's not worth it to splitt but I needed to know if i should quit my work before end of December or work a few more months as I planned.
From some other videos I saw on UA-cam I was under the impression if a have a pay cheque in 2025 i would not be able to do the income splitting.
This video is so useful! I’m new to Canada. There are some misconceptions and uncertain tax rules in my mind. You explained them very well! ❤
Glad it was helpful!
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)
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.
Would you be able to make a video talking more about 24:50? Thank you for the wonderful content!
FHSA &TFSA are good accounts to have. Don't you pay taxes back when you withdraw from RRSP? at that time tax rates could even be higher
For RRSP withdrawals taxes will not be deducted if the purpose of withdrawal is LLP life long learning plan and First time homes buyers plan. The bank will ask you these questions when completing the form.
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!
This was fantastic!
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 😣
Awesome video and superb quality content
Glad you enjoyed it
2:40 This sounds like misinformation. There are detailed payroll tables for every pay amount and pay period type (daily weekly monthly etc) for all of tax, CPP, EI and QPP, right to the penny, and all payroll software uses these tables, which are among the first next-year info to come out in any given year. Nobody takes "a little bit extra". You get a refund becase your non-refundable tax credits reduce your taxable income, which was taxed at what you made, so you end up paying more taxes than you have to most of the time. If NRTC's were factored in to tax rates no one would get a refund.
If I do swing trading as my sole income in a margin account, am I a business? Or is it ordinary capital gains tax?
i dont know in what province you live but here i ask my employers to take 0.00 to give to the gov. i put aside what i will need to pay when i get asked for it. Also in my province when you can ask your employer to take a certain amount of what you want them to put aside for the refund if you should have one.
Which province are you referring to?
iv been dirt poor most of my life so i never gave any of these "savings" account a single thought. Living pay cheque to pay cheque such things are a luxury. I did luckily manage to open a TFSA a couple years back...I've managed to maybe put in about 5k a year, which is slow as shit but at least I have a small next egg now in case I become unemployed or run into some emergency. Years ago if I became unemployed I would be royally fucked with nothing to fall back to. I didn't have a family I can just go back home to and crash, nah I was going to be homeless and out on the streets. Thank god, I managed to survive the darkest days...I had just enough money to survive 1 more month before I was out of options, luckily managed to land some crappy job that allowed me to live.
On a more happy note, i've finally ended up with a good job about a year ago and now make about 50k a year, which i'm extremely satisfied with...gives me so many options I never had before. Will finally start looking at those rrsp and other savings options since they are more in the realm of possibilities now.
@@fatmanslim4592Congrats!!!
These tips are rich people. Notice, these experts dint give low income earners tips or advice? Or single earners.
Thanks for that important education content
Glad it was helpful!
Your script was very well formatted, as soon as some pointers needed an explanation - it followed. Nice video!
Glad you enjoyed it!
To sum: if you're single you're doomed. No tax break for u😂
Great video, Thanks!!!
Glad you enjoyed it!
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
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: ua-cam.com/video/3HelwubpgWY/v-deo.htmlsi=V8KkA9GtxqPksa1-
Amazing video thank you
Glad you enjoyed it
I’m 70 and retired and have money invested with Edward Jones. It’s a reasonable amount , but not a lot ,if that makes any sense. I don’t trust the markets in the upcoming months and want out for a while. What is the least expensive way in doing this, and how?
"Building wealth is like climbing a mountain; investing is the steady ascent, retirement is the summit."
Twain, I'm so excited I found your page! Where do we go to apply for the BPA?
BPA is automatically applied to your tax return in tax softwares
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
Thank you 🙏....... Better inform prior than get burnt with unexpected taxes.
Glad it helped!
Hi Lee, thank you for providing such valuable content. I had one question. For the contributions that I make My company will contribute to the DPSP account instead of the RRSP account and it says withdrawal is not possible in DPSP account.
Any idea on this?
DPSP is basically locked in until you leave the employer, when you leave you have the option of doing a transfer to RRSP without triggering taxes, or you can make a withdrawal but it will trigger taxes
People who do not understand simple fractional math and refuse a raise because they'll pay more in tax deserve their station in life which is dwindling away slowly
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.
So I’m sole proprietorship I should be manually setting aside tax for the CRA according to my annual income bracket?
absolutely!
Great Job!
Thanks!
Superb video. So much actionable advice!
Glad it was helpful!
I never get a refund because I didn't ask HR to pay Max tax. So end of year I have to pay CRA.
I'd rather have the money with me to invest instead of giving it to the government to waste for that year.
That’s definitely an option, just requires more discipline
May I know Spousal RRSP is based on 18% of his income ($80,000) or her income ($150,000)? Thanks
Spousal RRSP uses the higher income spouses contribution room!
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.
Excellent researched video. Knew some of what you said but learned a lot as well! I am a higher income earner than my wife so yearly I give her the maximum four her tax savings account since I have already maxed out my own, but I have never done the”loan” you speak of and simply transfer the money into our account for her to invest. Hmmmm, your thoughts would be appreciated.
Glad it was helpful!
Great video: clear and well explained. I just subscribed . Thank you!
Awesome thanks!
Im single, no kids, family. Funny, I'm in lower tax bracket, under
50K
have a small PSP, I opted to collect CPP at 62 to supplement my income, No raises in my company in past 5 years.
Wham! ! tax time, I ended paying CRA $3,000K. I asked why, because I'm at highet tax bracket now.
There is no break for single people.
I can't even start drawing down RSP now more taxes . I literally have to retire, be broke before drawing my RSP.
Great, Thank you.
You are welcome!
How can I invest using my credit card ? What that means ? Instead of using e-transfer for deposit, use the credit card for the deposits? Or what ? I only have TFSA . Thanks
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.
I feel like this is more about deferred than actually paying less! Myself I am now a Mexican resident and will be working on setting myself up to NOT pay Canadian taxes anymore.... I pay well over 15K on 75/self employed income + you have to factor in BC taxes at 12% on almost everything....and on and on.
you're correct, its mainly deferment. Nobody knows the future, better to invest with post tax now and not depend on government programs.