Winning the Tax Game 2006 : A Year-round Tax and Investment Guide for Canadians

by Tim Cestnick

• ISBN13: 9780470838105
• ISBN10: 0470838108
• Format: Paperback
• Copyright: 2006-05-01
• Publisher: WILEY

Summary

Get in the game and step up to the plate - it's time to save tax! Canadians love to hate taxes, and complaining about a huge tax bill is something of a national sport. But most Canadians have done little or nothing to reduce the income tax they pay. If you want to win the tax game, you've got to step up to the plate!Noting can better protect hard-earned income and help to accumulate wealth than clever tax strategies. In this fully refreshed and updated bestselling guide, Canada's foremost tax expert, Tim Cestnick, shows you how you can build a successful game plan that will reduce your taxes and maximize after-tax investment returns.What's inside Winning the Tax Game 2006: Essential guidelines and changes for the 2006 tax season Details of last-minute proposed changes to income trusts and tax rates Updates on RRSPs, interest deductibility, and other pending tax changes A look at the most recent innovations in tax-smart investing Critical strategies for families, employees, and the self-employed Advice designed to maximize your retirement income Strategies to deal with your estate in a tax-smart manner A summary of changes relevant in your province Tim's "Tax Planning Tip Sheet," a detailed check list to design your own game plan for paying less tax helpful charts, tables, and sidebars for fast access to important information

Table of Contents

Acknowledgments	vii
Tax Planning lip Sheet	viii
Foreword: Stepping Up to the Plate	xv
Changes Making the Headlines	xix
Chapter 1 Pre-Game Warm-Up: The Basics of Tax Planning	1	(16)
Playing by the Rules	2	(1)
Knowing the Numbers Game	3	(4)
Timing Your Taxes	7	(5)
Fighting When You're Right	12	(5)
Chapter 2 Home Team Advantage: Tax Planning for the Family	17	(51)
Splitting Family Income	18	(21)
Educating the Family	39	(9)
Heading for Home	48	(4)
Claiming Family Care Costs	52	(6)
Surviving Separation and Divorce	58	(10)
Chapter 3 Signing with the Team: Strategies for Employees	68	(39)
Optimizing Employment Benefits	69	(19)
Claiming Employment Deductions	88	(5)
Driving Automobiles on the Job	93	(7)
Deferring Compensation	100	(5)
Calling It Quits	105	(2)
Chapter 4 Becoming a Free Agent: Strategies for Self-Employment	107	(25)
Jumping on the Bandwagon	108	(2)
Choosing Your Business Structure	110	(7)
Claiming Business Deductions	117	(12)
Adding Up the Tax Hits	129	(3)
Chapter 5 Bulls, Bears, and Baseball: Strategies for Investors	132	(46)
Investing in a Tax-Smart Manner	133	(11)
Understanding Tax-Smart Strategies	144	(18)
Sheltering Income with Life Insurance lice	162	(7)
Borrowing to Invest: Leveraging	169	(9)
Chapter 6 Earning the Gold Glove: Strategies for Retirement	178	(49)
Understanding RRSP Basics	179	(10)
Contributing to Your RRSP	189	(18)
Withdrawing from Your RRSP	207	(11)
Benefiting from RRIFs and Annuities	218	(4)
Understanding Registered Pension Plans	222	(5)
Chapter 7 American League Rules: United States' Connections	227	(14)
Reporting Your U.S. Income	228	(2)
Profiting from U.S. Real Estate	230	(5)
Cutting Your Gambling Losses	235	(2)
Staying Canadian	237	(2)
Considering U.S. Estate Taxes	239	(2)
Chapter 8 A League of Their Own: Provincial Tax Issues	241	(16)
Walking to a Different Drummer	242	(8)
Understanding the Quebec Difference	250	(7)
Chapter 9 Bottom of the Ninth: Planning for Your Estate	257	(24)
Knowing What to Expect	258	(1)
Giving It Away Today	259	(3)
Giving It Away at Death	262	(12)
Providing Tax-Free Death Benefits	274	(2)
Planning for U.S. Estate Taxes	276	(5)
Glossary of Abbreviations	281	(14)
Marginal Tax Rates for 2005	282	(7)
Federal Personal Tax Rates for 2005	289	(1)
Provincial Personal Tax Rates for 2005	289	(1)
Federal Personal Tax Credits for 2005	290	(1)
Additional Federal Tax Credits	290	(1)
Canada Pension Plan Contributions 2005	291	(1)
Employment Insurance Premiums 2005	291	(1)
Dividends	292	(1)
Old Age Security Benefits	292	(1)
Canada Pension Plan Benefits	293	(1)
RRSP Contribution Limits	293	(1)
Minimum Annual RRIF Wit	293	(2)
Index	295