Got a refund?  Think RRSP If you anticipate receiving a tax refund, you may already be dreaming about how to spend it – maybe a trip or a new IPad.  Here’s a better idea:  use your refund to top up your RRSP (Registered Retirement Savings Plan) and enjoy a bigger nest egg when you need it. If you contribute now for the current year, you will be putting your money to work almost a year earlier than those who wait until the the last minute.  You will maximize the tax savings and tax-deferred growth that make RRSPs so attractive in the first place. Let’s say your reinvest your tax refund of $2,000 in your RRSP.  You will then have a $2,000 tax deduction for 2010 representing a $700 tax savings (assuming a 35% marginal tax rate).   Not bad for reinvesting the government’s money!  If you invested this $2,000 tax refund for 30 ...

CLU Comment - May/Jun 2010   <-------- Click to open The CLU Comment is a publication distributed by CLU Institute®.  The most recent issue (May/June 2010) outlines what is taxable in the event your life insurance policy is “disposed of”.  Also there are recent proposals that may alter the way life insurance policies are valued when donated to a charity.  Both of these topics and more are discussed in this issue.  If you have questions or comments about the material provided, please call our office.  We look forward to speaking with you soon.  Background Information: DISPOSITION OF A LIFE INSURANCE POLICY Income Tax Act references: Subsection 148(1) – amounts included in computing policyholder’s income [on disposition of a life insurance policy] Section 54 and subparagraph 39(1)(a)(iii) – [exclusion of a life policy (other than a segregated fund contract) from the definition of capital property] Paragraph 56(1)(j) – life insurance policy proceeds [inclusion in regular income] Subsection 148(4)– income from ...