Panic Switch
Today,
I learned that Canada allows you to use up to $20,000 of RRSP-protected investments on your first condo/house, tax-free. This is actually only a half-truth as I knew a bit about it (called the HBP, Home Buyer's Plan), but I didn't know exactly how it worked (or the fact that the money needs to be "paid back" to your RRSP investment within 15 years.)
This is crazy-awesome.
Basically, RRSP investments that I could be keeping with me for my retirement (when my salary'll be less and therefore I'll have a lower tax incidence) can be brought into the "Real World" right now, tax-free!
As someone who's looking at buying a condo by this time next year (and who is currently at not-exactly-low tax bracket), this is ridiculously attractive. It allows me to take out a chunk of taxable income (that for some reason my company didn't convert to RRSP investments) and free it up, and it also pushes me to a lower tax level for this year (given my battle plan, a year of max income for a couple of years to come.)
...hmm...this means that I might be slightly ahead of plans...I approve of this.
...shit...this also means that if I want to reap the full benefit of this Home Buyer's Plan, I might need to wait to receive my Notice of Assesment for 2009 to make sure I've fully legally maxed out this year's RRSP, and that's delivered post-June...
More reasons that I really want to get some kind of certificate in Accounting/Management...
I learned that Canada allows you to use up to $20,000 of RRSP-protected investments on your first condo/house, tax-free. This is actually only a half-truth as I knew a bit about it (called the HBP, Home Buyer's Plan), but I didn't know exactly how it worked (or the fact that the money needs to be "paid back" to your RRSP investment within 15 years.)
This is crazy-awesome.
Basically, RRSP investments that I could be keeping with me for my retirement (when my salary'll be less and therefore I'll have a lower tax incidence) can be brought into the "Real World" right now, tax-free!
As someone who's looking at buying a condo by this time next year (and who is currently at not-exactly-low tax bracket), this is ridiculously attractive. It allows me to take out a chunk of taxable income (that for some reason my company didn't convert to RRSP investments) and free it up, and it also pushes me to a lower tax level for this year (given my battle plan, a year of max income for a couple of years to come.)
...hmm...this means that I might be slightly ahead of plans...I approve of this.
...shit...this also means that if I want to reap the full benefit of this Home Buyer's Plan, I might need to wait to receive my Notice of Assesment for 2009 to make sure I've fully legally maxed out this year's RRSP, and that's delivered post-June...
More reasons that I really want to get some kind of certificate in Accounting/Management...