Start banking your child’s RRSP contribution room 09/11/99

When the child eventually does
start an RRSP, he or she will be
able to deposit that contribution
room amount, resulting in a larger
retirement nest egg,” says Katz.

Managing Your Personal
Taxes contains other tax
planning tips for Canadians of
all ages and walks of life. Other
highlights from Managing Your
Personal Taxes include:

• If you have sufficient earned
  income in the year you turn 69,
  consider making a contribution for
  the next year, in addition to the
  one made for the current year,
  just before the year end. Although
  you are required to collapse your
  RRSP before the end of the year in
  which you turn 69, you are still
  able to deduct excess RRSP
  contributions in subsequent years.
  You will be subject to a 1% penalty
  tax for one month, but this may be
  more than offset by the tax savings
  from the contribution.

• If you have received shares
  from the demutualization of a life
  insurance company, consider
  donating these windfall shares to
  a charity to realize a tax saving.
  

• Capital gains can be sheltered
  from tax by disposing of
  investments with accrued capital
  losses prior to the end of the
  year. The superficial loss rules
  will deny the capital loss if
  you or your spouse acquire
  identical investments during the
  period commencing 30 days prior
  to, and ending 30 days after, the
  date you or your spouse sell the
  investments.
  

-IE Staff

For more please see:

www.eycan.com and

www.newswire.ca