Registered Educational Savings Plans are not a tax planning tool.
They can increase tax payments upon withdrawal for both the child and the contributor. The investment aspect can also be in question.
Tax Free Savings Accounts can save you a very small amount of taxes now but cost you much more in tax savings in other areas.
It is important that you are incorporating is for the right reason.
Incorporating may prove to be an expensive situation to get into and out of later with little or no tax savings.
Rental income is a long term investment which may lead to greater tax savings later. It is not a vehicle to produce expenses to create an immediate tax advantage now.
The purpose of self employment is to create income. Self employment to create a loss may lead to difficulties in the future.
CANADA REVENUE AGENCY
The information provided by the Canada Revenue Agency for the majority of questions may be correct. A recent survey shows that 25% of the answers on the telephone are incorrect.
The basic problem is they do not either understand the question nor know the whole story.
Tax software is only a tool for tax preparation not unlike a hammer in building a house. Proper tax preparation requires a plan to save tax dollars. A tax plan requires an architect to build a firm foundation.
Tax preparation software provides no accountability or recourse other than the Canadian Revenue Agency
Interest on a Margin Account to Purchase Stocks
Pitfall: Interest on a margin account to purchase stocks is not an eligible interest expense. Interest to earn interest or dividend income is the only interest allowed. The interest to purchase stock is added to the adjusted cost of the stock when you sell it.
What's Upcoming in 2019 and future years
The Child Tax Benefit will be changing to an indexed tax free credit.