FINA 385 Lecture Notes - Lecture 3: Registered Retirement Savings Plan, Property Tax, Tax Deduction
26 May 2016
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Describe the importance of taxes for personal financial planning. o o o. About one-third of each dollar you earn goes to pay income taxes. An effective tax strategy is vital for successful financial planning. To help you cope with the many types of taxes, you should: Make employment, investment and purchase decisions that leave you with the greatest after-tax cash flows and net wealth. Personal income tax both federal and provincial. Filing your federal and provincial income tax returns. Determine whether you are required to file a return. Canadian residents must file a return if they will owe money. Canadian residents are taxed on their worldwide income. Students should file to obtain gst/hst tax credits and create rrsp contribution room. The province of residency as of december 31 determines provincial return. Other provinces apply a tax on income (toni) approach. Illustrate how federal income taxes are computed by completing a federal income tax return: determining total income.
