Business Administration - Financial Planning RFC122 Chapter Notes - Chapter 3: Tax Bracket, Income Splitting, Ordinary Income

• School: Seneca College
• Department: Business Administration - Financial Planning
• Course: Business Administration - Financial Planning RFC122
• Professor: Peter Wan

Document Summary

3 tax planning rrsps and other tax-assisted retirement plans. Can be used for: retirement, financing first home, training, post- secondary education, tax deferral. Concept: if you agree to put some of your salary/self-employment away, you won"t ha(cid:448)e to (cid:271)e ta(cid:454)ed i(cid:373)(cid:373)ediatel(cid:455) o(cid:374) the i(cid:374)(cid:272)o(cid:373)e, i(cid:374)terest when received rather than earned. Example: if you earn ,000, you pay tax on ,000, suppose you earn ,000 but you put ,000 of that into an. Rrsp deductible are deductible for any given year they are contributed in the year or within 60 days after the end of the year: contribute by february 29, 2016, you can get a deduction for. Three factors limit the amount you can contribute to an rrsp: dollar limit. 2016 - ,370: per(cid:272)e(cid:374)tage of pre(cid:448)ious year"s ear(cid:374)ed i(cid:374)(cid:272)o(cid:373)e. 18% of the pre(cid:448)ious year"s ear(cid:374)ed i(cid:374)(cid:272)o(cid:373)e. 18% of your earned income for 2015 will determine contribution in 2016.