Suggestions for how to blow Income Tax return - Page 3 - Calgarypuck Forums - The Unofficial Calgary Flames Fan Community

MoneyGuy · 02-11-2008, 09:52 PM

RRSP! And a hefty tax refund is a sign bad tax planning. It's an interest-free loan to the feds. Stop it.

Jagger · 02-11-2008, 10:07 PM

I would probably pay down my line of credit (which was set up to buy our cabin). That way it is going towards a fun thing. My RRSP's are doing so poorly that I doubt whether I'll be investing that way this year. Much better to pay down my mortgage and LOC. So, SylvanFan, you've got to get yourself a cabin! Lake Isle, Lac. St. Anne etc. are up your way. Nice area.

Sylvanfan · 02-11-2008, 10:11 PM

Quote:

Originally Posted by MoneyGuy

RRSP! And a hefty tax refund is a sign bad tax planning. It's an interest-free loan to the feds. Stop it.

Yeah, I know...but with a joint bank accout, it's the lesser of two evils because my wife would nickle and dime away any funds I give her access to. And with the way the stock market has tanked here in the last little bit....the big lump sum will buy me a lot more at better value right now than if I'd kept buying when it was at the levels it was at.

FireFly · 02-12-2008, 10:31 AM

I'm all about instant gratification and am not going to invest mine in anything other than myself... specifically a trip to New York.

Ozy_Flame · 02-12-2008, 11:07 AM

Is it normal for full-time people to get returns? I thought most people would be paying more taxes, not getting money back. Returns seems like something only meant for students or part-time employees with low income.

Bring_Back_Shantz · 02-12-2008, 11:26 AM

Quote:

Originally Posted by MoneyGuy

RRSP! And a hefty tax refund is a sign bad tax planning. It's an interest-free loan to the feds. Stop it.

That's why I like owing them money at the end of the year....
Actually i hate it, but at least they don't ding you for interest.

Incinerator · 02-12-2008, 11:30 AM

Quote:

Originally Posted by Sylvanfan

3.)Front Loading Washer and Dryer and pay down Secure L.O.C.

You just answered your own question, as if Mrs. Sylvanfan would let you get away with 1) or 2)...lol

Cowperson · 02-12-2008, 01:56 PM

My goal is to solve this problem by jacking my income so high that it can't help but outpace all my deductions and my tax refund shrinks to zero as a result.

Cowperson

TimSJ · 02-12-2008, 02:16 PM

paying off kitchen reno

Bobblehead · 02-12-2008, 02:18 PM

Quote:

Originally Posted by Bring_Back_Shantz

That's why I like owing them money at the end of the year....
Actually i hate it, but at least they don't ding you for interest.

Just be careful you don't trigger installment payments.

Sylvanfan · 02-12-2008, 02:48 PM

Quote:

Originally Posted by Cowperson

My goal is to solve this problem by jacking my income so high that it can't help but outpace all my deductions and my tax refund shrinks to zero as a result.

Cowperson

Isn't the best way to create wealth is by making your money as tax efficiently as possible. So in theory, the more you make, the more you should be finding ways to write it off. Really you should want your writeoffs to essentially shrink your net income to zero. Than again...being rich is way more fun than being wealthy is.

Cowperson · 02-12-2008, 04:34 PM

Quote:

Originally Posted by Sylvanfan

Isn't the best way to create wealth is by making your money as tax efficiently as possible. So in theory, the more you make, the more you should be finding ways to write it off. Really you should want your writeoffs to essentially shrink your net income to zero. Than again...being rich is way more fun than being wealthy is.

Shrinking my net income to zero would be pretty much impossible considering I'm already deducting a five figure number for the wife, RSP's, pre-taxing business expenses, deducting and depreciating a vehicle . . . . and any number of other interesting things that can explode in the night (and have survived a CCRA audit too).

No . . . . it's not even close to zeroing.

So . . . . I must earn piles more to make the refund go away. I must. I must. I must.

Cowperson

jammies · 02-12-2008, 05:06 PM

Don't listen to these people that want you to spend it sensibly - a giant meteor could hit the Earth next month and kill us all, and THEN where will your RRSP be?

Seriously, spend it on something fun, like a trip, or a dirt bike, or a mistress. Obviously you have enough financial sense to work the numbers so you get a big refund, so now's your opportunity to indulge yourself.

llama64 · 02-12-2008, 05:31 PM

Build a "World's Largest ......" on your lawn.

You fill in the blank

sixpacked · 02-13-2008, 02:10 PM

Quote:

Originally Posted by Ozy_Flame

Is it normal for full-time people to get returns? I thought most people would be paying more taxes, not getting money back. Returns seems like something only meant for students or part-time employees with low income.

Yes and no depends on your situation. If you started investing in your RRSP, birth of children, change in marital status, a large refund may be coming. In 2007 budgetary announcements, will cause most people to receive a refund. Actually a lot of part-time workers, especially those with several jobs, get dinged big-time becasue their employers don't deduct enough.

albertGQ · 02-13-2008, 02:14 PM

Quote:

Originally Posted by sixpacked

Actually a lot of part-time workers, especially those with several jobs, get dinged big-time becasue their employers don't deduct enough.

Exactly. My PT job deducts zero, so I'm "forced" to make a massive contribution for 2007. I basically put 100% of what I made in my PT job towards my RSPs

Bring_Back_Shantz · 02-13-2008, 02:30 PM

Quote:

Originally Posted by Bobblehead

Just be careful you don't trigger installment payments.

Yeah, unfortunately after the bill I'm going to receive this year, that's probably going to happen. Fortunately I think I've got a pretty good arguement that this was a somewhat rare occurance and won't be happening every year.

Sylvanfan · 02-13-2008, 02:33 PM

Quote:

Originally Posted by albertGQ

Exactly. My PT job deducts zero, so I'm "forced" to make a massive contribution for 2007. I basically put 100% of what I made in my PT job towards my RSPs

You can get a form to fill out to give to your employer to inform them that you have another job so that they will deduct more money from your pay checks. Of course, you're better off to just take that money yourself and put it into an RRSP and try to balance it out so that it's even at year end.

albertGQ · 02-13-2008, 02:36 PM

Quote:

Originally Posted by Sylvanfan

You can get a form to fill out to give to your employer to inform them that you have another job so that they will deduct more money from your pay checks. Of course, you're better off to just take that money yourself and put it into an RRSP and try to balance it out so that it's even at year end.

Yup. That's what I'm doing this year. Since I don't "need" my paycheques from my PT job, I'm going to buy RSPs every two weeks with 100% of my cheques.

sixpacked · 02-15-2008, 03:39 PM

Quote:

Originally Posted by fotze

Are there ways to kind of defer/hide income if you get a big glut such as exercising options, other than maxing out RRSP's and donating to charity? If you are not a "consultant" as well?

I'll just cover my ears when you talk about hiding income.

. But unfortunately, for those of us who aren't "consultants", a lot of CRA attention/heat has been headed that way as well, the best tax savings areas are RRSPs, donations are ok, but there are limits and they aren't dollar for dollar. The big glut you are talking about would be a capital gain, and to make it less painful, you are taxed on only 50% of the gain.