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Profitable Charitable gift donations
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From what I can tell, the money you 'get back' is non-contractually bound. Ie, at any time, someone could pull the rug out from under you. Or so it seems on the surface...
I'd definately contact a lawyer before doing anything this .. strange.
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3) Invest money from this second mortgage towards GUARANTEED INVESTMENTS which are equal to - or higher than the interest rate of the mortgage. Don't go blowing this on chicks and booze, the casino, the lottery, or risky markets. (no matter how "easy" they say Foreign Exchange is)
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! I would love to find guaranteed investments with a higher interest rate than a consumer morgage. Can you point me at one?
4.7% 5 year fixed morgage vs 2.8% 5 year GIC. That's a 1.9% gap.
Equal interest rate to the morgage wouldn't do anything. The tax deduction from the morgage would cancel out the income earned from the investment.
Argueably, if you could find a capital investment with a rate of return that matched your morgage interest rate, you'd be golden.
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First, Mr. Smith earned $15,000 TAX FREE from his home-based business. Furthermore, he also reduced his income from employment by $4,500. Assuming a marginal tax rate of 32%, Mr. Smith has a NET GAIN of $16,440 for 2004. If his daughter contributed $2,000 from her “salary” to an R.E.S.P., she will also receive an additional $400 in credit from the government. Owning a Home-Business could be Your Pathway to Financial Independence!
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Um, didn't you just deduct more expenses than you earned from the expenses?
Hmm, looks like you are right:
http://www.taxtips.ca/small_business_income_tax.htm
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6. If I have a small business, do I have to file both a personal and a business tax return?
The type of income tax returns you have to file will depend on whether your business is incorporated. If you have an incorporated business, you must complete a corporate (T2) tax return for the business, and you must also complete a separate personal (T1) tax return. If your business is incorporated, the business losses (non-capital losses) cannot be used to reduce income on your personal tax return. However, the non-capital losses of the corporation can be carried back, or carried forward to apply against corporate income in other years. For taxation years ending after March 22, 2004, non-capital losses can be carried forward for up to 10 years to be deducted in future years. For taxation years ending March 22, 2004 or earlier, the carry forward period is 7 years.
If your business is not incorporated, then you only have to file a personal (T1) tax return. The income or loss from the business will be included on your personal tax return. With your personal tax return, you will have to file a "statement of business activities" which includes an income statement for your business. If you have a loss from your business, and you have other income such as employment or investment income, then the business losses will reduce the other income on your tax return. If you have business losses which exceed your other income in the current year, they can be carried back, or carried forward to apply against income in other years.
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m0k13: thanks.
http://www.cra-arc.gc.ca/newsroom/fa...1125tax-e.html
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As explained above, the December 5, 2003 amendments reduce the donation by the amount of any advantage.
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the above, together with
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All tax shelter promoters are required by law to report all sales of their arrangements to the CRA.
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sort of means that you are just begging to be audited for most of these?
The donation is reduced by the amount of any advantage. So all those 'cash back' situations reduce your donation.