Click here to close now.




















Welcome!

News Feed Item

Don't Get "Fooled" This Tax Year-BMO Provides Ideas on How to Minimize Taxes on Investments

TORONTO, ONTARIO -- (Marketwire) -- 04/01/12 -- With today being April Fools' Day and the tax deadline approaching, BMO advises Canadians to make a resolution not to be "fooled" on how their investments are taxed. A survey commissioned by BMO shows that more than three-quarters of Canadians do not take tax implications into consideration each time they make an investment decision.

"There are many tax-saving strategies, some very simple, that Canadians can use to save money in the short and long-term," said John Waters, Vice-President and Head of Technical Expertise, BMO Nesbitt Burns. "The best strategy is to educate yourself on the options available to you, and plan ahead."

BMO offers the following ideas for minimizing taxes on investments:


--  Avoid Nasty Tax Surprises: Always keep personal tax implications in mind
    when making investment decisions. Speak with your financial professional
    about how tax rules impact your investment decisions. Make sure you
    understand your options. 
    
--  Contribute to an RRSP: Contributions to a Registered Retirement Savings
    Plan (RRSP) are tax deductible, and the income earned in an RRSP is not
    taxed until it is withdrawn. This means your savings will grow faster
    than those held outside of an RRSP. There are several ways to optimize
    use of an RRSP, including maximizing your annual contribution limit and
    contributing to a spousal RRSP if there is a disproportionate retirement
    income level between you and your partner.  
    
--  Invest in a TFSA: The Tax-Free Savings Account (TFSA) is a tax-efficient
    vehicle that provides the benefits of tax-sheltered savings and tax-free
    compounding, allowing your savings to grow. Income and withdrawals from
    a TFSA are tax-free; because of its flexibility, it complements other
    existing registered savings plans. 
    
--  Think about income splitting: In order to lower your family's overall
    tax burden, income splitting allows you to spread income among family
    members who are taxed at a lower rate (subject to possible attribution
    rules). Some valid income-splitting strategies include: pension
    splitting between spouses or common law partners; an interest-bearing
    loan to family members in a lower tax bracket; and gifts to adult
    children or other adult family members. 
    
--  Make your portfolio tax efficient: Because not all investments are taxed
    in the same manner, it is important to consider the impact of income
    taxes when evaluating investments for your portfolio. For example, only
    one-half of capital gains are taxable, whereas interest income is fully
    taxed at your marginal tax rate. Certain Canadian dividends also receive
    special tax treatment, resulting in lower effective tax rates. 
    
--  Donate appreciated securities: One of the most tax-efficient ways to
    contribute to a charity is through the donation of publicly-traded
    securities instead of cash. When you make a qualifying donation of
    publicly-traded securities, the capital gains tax that usually applies
    to the sale of a security can be eliminated. However, investors will
    also receive a tax receipt for the fair market value of the securities
    at the time of the donation. 

For more information on BMO, please visit: www.bmo.com.

Get the latest BMO press releases via Twitter by following @BMOmedia.

Contacts:
Media Contacts:
Amanda Robinson, Toronto
416-867-3996
[email protected]

Sarah Bensadoun, Montreal
514-877-8224
[email protected]

Laurie Grant, Vancouver
604-665-7596
[email protected]

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
In their session at 17th Cloud Expo, Hal Schwartz, CEO of Secure Infrastructure & Services (SIAS), and Chuck Paolillo, CTO of Secure Infrastructure & Services (SIAS), provide a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. In his role as CEO of Secure Infrastructure & Services (SIAS), Hal Schwartz provides leadership and direction for the company.
In a recent research, analyst firm IDC found that the average cost of a critical application failure is $500,000 to $1 million per hour and the average total cost of unplanned application downtime is $1.25 billion to $2.5 billion per year for Fortune 1000 companies. In addition to the findings on the cost of the downtime, the research also highlighted best practices for development, testing, application support, infrastructure, and operations teams.
"We've just seen a huge influx of new partners coming into our ecosystem, and partners building unique offerings on top of our API set," explained Seth Bostock, Chief Executive Officer at IndependenceIT, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducte...
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
With SaaS use rampant across organizations, how can IT departments track company data and maintain security? More and more departments are commissioning their own solutions and bypassing IT. A cloud environment is amorphous and powerful, allowing you to set up solutions for all of your user needs: document sharing and collaboration, mobile access, e-mail, even industry-specific applications. In his session at 16th Cloud Expo, Shawn Mills, President and a founder of Green House Data, discussed h...
Mobile, social, Big Data, and cloud have fundamentally changed the way we live. “Anytime, anywhere” access to data and information is no longer a luxury; it’s a requirement, in both our personal and professional lives. For IT organizations, this means pressure has never been greater to deliver meaningful services to the business and customers.
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
There are many considerations when moving applications from on-premise to cloud. It is critical to understand the benefits and also challenges of this migration. A successful migration will result in lower Total Cost of Ownership, yet offer the same or higher level of robustness. In his session at 15th Cloud Expo, Michael Meiner, an Engineering Director at Oracle, Corporation, analyzed a range of cloud offerings (IaaS, PaaS, SaaS) and discussed the benefits/challenges of migrating to each offe...
Puppet Labs has announced the next major update to its flagship product: Puppet Enterprise 2015.2. This release includes new features providing DevOps teams with clarity, simplicity and additional management capabilities, including an all-new user interface, an interactive graph for visualizing infrastructure code, a new unified agent and broader infrastructure support.
Chuck Piluso presented a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Prior to Secure Infrastructure and Services, Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of International Te...
One of the hottest areas in cloud right now is DRaaS and related offerings. In his session at 16th Cloud Expo, Dale Levesque, Disaster Recovery Product Manager with Windstream's Cloud and Data Center Marketing team, will discuss the benefits of the cloud model, which far outweigh the traditional approach, and how enterprises need to ensure that their needs are properly being met.
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobi...