tax change with Income Trusts
Joined: Nov 2003
Posts: 30,233
Likes: 175
From: Rothesay, New Brunswick, Canada
Originally Posted by whatacar
My broker sent out an e mail to all of her clients and said Do nothing till the dust settles, then we'll talk.
On another note, Harper going against his word is EXACTLY why I HATE politics and always have. They tell you what you want to hear to get elected, than don't live up to any promises. Not sure if this is too harsh or not, but I have always felt that they were nothing more than a bunch of fvcking crooks and that their "word" doesn't mean ****! That may be quite a generalized opinion since there are probably some decent politicians out there (well, maybe), but stuff like this burns my @ss!
Joined: Jun 2002
Posts: 30,341
Likes: 9
From: Cambridge, Ont. Canada
Originally Posted by canuck
That's solid advice IMO. I won't do anything yet either, not until I know the long term affects this will have.
On another note, Harper going against his word is EXACTLY why I HATE politics and always have. They tell you what you want to hear to get elected, than don't live up to any promises. Not sure if this is too harsh or not, but I have always felt that they were nothing more than a bunch of fvcking crooks and that their "word" doesn't mean ****! That may be quite a generalized opinion since there are probably some decent politicians out there (well, maybe), but stuff like this burns my @ss!
On another note, Harper going against his word is EXACTLY why I HATE politics and always have. They tell you what you want to hear to get elected, than don't live up to any promises. Not sure if this is too harsh or not, but I have always felt that they were nothing more than a bunch of fvcking crooks and that their "word" doesn't mean ****! That may be quite a generalized opinion since there are probably some decent politicians out there (well, maybe), but stuff like this burns my @ss!
+1......and I think you were being nice about it Shane....
C.
Registered User
Joined: Nov 2004
Posts: 2,966
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From: Trolling a forum near u.... (T.O.)
i'm still waiting for the day i wake up in the morning... take a pi$$ in my toilet and the current pm's voice comes booming on saying... please deposit 1.50$. i swear to g@d our government taxes absolutely every stinking thing possible. every year record surpluses... yet more and more taxes. wtf is going on?? 
Registered User
Joined: Nov 2005
Posts: 57
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From: Toronto
It seems like this really could have been thought out better. Especially these 2 things:
1. They should have thought about the fact that old people actually die. They are using income splitting to help soften the blow to seniors but what about widows. First, their spouse dies and all RRIF's HAVE TO be cashed in immediately and often almost 1/2 lost to tax. Now Harped just killed a lot of what was left for them. But they are allowed to income split what little income they have left with a spouse that they don't have.
2. SOFTEN THE BLOW wAY MORE!!! Someone above mentioned 800 million/yr lost tax revenue before. Now 25 billion is wiped out and a lot of that (many times more than the 800 million previously lost) could have been taxed as capital gains.
1. They should have thought about the fact that old people actually die. They are using income splitting to help soften the blow to seniors but what about widows. First, their spouse dies and all RRIF's HAVE TO be cashed in immediately and often almost 1/2 lost to tax. Now Harped just killed a lot of what was left for them. But they are allowed to income split what little income they have left with a spouse that they don't have.
2. SOFTEN THE BLOW wAY MORE!!! Someone above mentioned 800 million/yr lost tax revenue before. Now 25 billion is wiped out and a lot of that (many times more than the 800 million previously lost) could have been taxed as capital gains.
Joined: Nov 2004
Posts: 19,619
Likes: 6
From: Nova Scotia, Canada
^ Agree that there could have been a better implementation to reduce such a large loss of capital for Canadian investors. A primary goal of the change is to eliminate a tax vacation from foreign investors, which will be accomplished. They are the only ones who will end up ultimately seeing a $$ difference after selling their units because of proposed changes for dividend income for Canadians.
I'm not familiar with attribution rules on RRIF upon spousal death. That surprises me once cashed out they are considered income or a capital gain to the surviving spouse, all at once. I'll have to check that out.
On the $800 mil. lost tax revenue for the government. It really wasn't lost since the distributions would be considered capital gains and tax recovered ultimately upon sale of the units. Therefore it was really deferred tax revenue to the government.
Edit re RRIF- I did some research with the governement. It appears my hunch was right and although the RRIF funds would be transferred to the named beneficiary and a new RRIf set up the $ gain woul be offset by a tax deduction of same. Bottom line, uless I am interpreting this wrong there would be no tax hit in the case of the death of a spouse with an RRIF.
Here is the source:
http://www.cra-arc.gc.ca/E/pub/tg/rc4177/rc4177-e.html
I'm not familiar with attribution rules on RRIF upon spousal death. That surprises me once cashed out they are considered income or a capital gain to the surviving spouse, all at once. I'll have to check that out.
On the $800 mil. lost tax revenue for the government. It really wasn't lost since the distributions would be considered capital gains and tax recovered ultimately upon sale of the units. Therefore it was really deferred tax revenue to the government.
Edit re RRIF- I did some research with the governement. It appears my hunch was right and although the RRIF funds would be transferred to the named beneficiary and a new RRIf set up the $ gain woul be offset by a tax deduction of same. Bottom line, uless I am interpreting this wrong there would be no tax hit in the case of the death of a spouse with an RRIF.
Here is the source:
http://www.cra-arc.gc.ca/E/pub/tg/rc4177/rc4177-e.html
Last edited by RBull; Nov 2, 2006 at 01:35 PM. Reason: addition
Originally Posted by canuck
That's solid advice IMO. I won't do anything yet either, not until I know the long term affects this will have.
On another note, Harper going against his word is EXACTLY why I HATE politics and always have. They tell you what you want to hear to get elected, than don't live up to any promises. Not sure if this is too harsh or not, but I have always felt that they were nothing more than a bunch of fvcking crooks and that their "word" doesn't mean ****! That may be quite a generalized opinion since there are probably some decent politicians out there (well, maybe), but stuff like this burns my @ss!
On another note, Harper going against his word is EXACTLY why I HATE politics and always have. They tell you what you want to hear to get elected, than don't live up to any promises. Not sure if this is too harsh or not, but I have always felt that they were nothing more than a bunch of fvcking crooks and that their "word" doesn't mean ****! That may be quite a generalized opinion since there are probably some decent politicians out there (well, maybe), but stuff like this burns my @ss!
