In Canada, we are investing essentially 3 separate tax options for our money. Sometimes it is confusing and we are fighting the security options of risk verses return. Unfortunately, most of us do not know of another place, other than real estate or a bank to invest.
The three types of capital income Canadians are generally available:
Income class of interest - the highest rate of taxes (including income from employment) for the individual, but asthe safest in terms of security of investment. A generally lower yields. Savings accounts, guaranteed investment certificates, term deposits and bonds of interest are the traditional tools to win. As "debt" as a file, if your money to borrow money at the center of the lenders (banks, public institutions, private investment) for an agreed rate of interest.
Dividends - preferred tax rate on revenue from profits obtained through the sale of the createdby the companies that have invested in many stocks, dividend payments, which can be used as an income without having to reduce the capital invested. Income from rental of properties in this category in question. Dividends are taxed annually.
Capital gains - the tax preference, based on investment growth. Stocks, real estate investment and investment funds generally fall into this category. This is a personal exemption of taxes on capital gains when you selltheir homes, but there are guidelines and restrictions should be left to an investment professional to order for you. After the structure of investments, which are taxed year, or are imposed only at the sale) (sale of a service.
I think the investment opportunities of both personal and own your store. I hope that this simplified analogy makes sense for you.
1) With the purchase of property, including land and buildings, was an investment. WhenWill transfer the ownership of a service () is increased the value of the property, proceeds from the sale of the property is a capital gain and profits to 50% of the price to pay would be taxed when you invest in a GIC or tax you pay your salary.
2) The company sells products. The proceeds from the sale of goods is to pay a dividend, which has a low rate of taxation compared with the tax on interest income or employment.
3) If you are taking medication, or if youthen take the money, who took advantage and leave the money in the bank, where interest accumulates. This is recognized as the interest of business and is completely passive higher.
In Canada, we also call a good use of tax havens, the registration of retirement savings plan (RRSP). First, an RRSP is not an investment, a tax assessment. This tax will reduce its tax shelters, is the deferral of income until his retirement at a later date. This is a greatcause in the fiscal year that immediate investments to grow tax-free status and composition of works to their advantage.
The biggest disadvantage of an RRSP is considered income for his retirement, and is subject to the highest form of taxation ... All this not only benefits. The tax breaks that the Government of Canada is now under the income tax, as he retired in the same category.
So what's the answer? Well, aNumber of strategies that are used to reduce taxes. It 'better to be open or talk with the investment bank founded a professional or investment firm. With all the investment in computer programs that are available today, you can take a picture of the fiscal strategy, which is beneficial for you, now and in the future. Not feel the weight of investing with them, to feel comfortable. Moreover, the Internet is an important resource, and we would do well to make their ownResearch.
If you are a bit 'more profit-oriented and risk, may also invest in private (private / municipal bonds, real estate, Real Estate Investment Group and many other options), but it feels good to be determined. At the end of the day, it's your money and you want to understand the overall direction and possible outcomes in the end.