Spousal RRSPs and the Three-Year Rule
A spousal RRSP is one you contribute to and your spouse owns. You take the deduction, they own the money, and in retirement the income is taxed in their hands instead of yours. Withdraw too soon after a contribution and that last part reverses. The short answerYou...
Tax on RRSP Withdrawals: The Withholding Rates, and Why They Are Not the Whole Bill
Take money out of an RRSP and your institution withholds 10%, 20% or 30% depending on how much you take. That is a deposit against your tax bill, not the bill itself, and the gap between the two is where the unpleasant surprise lives. The short answerWithholding is...
Is There an Inheritance Tax in Canada? What Actually Gets Taxed
Canada has no inheritance tax and no estate tax. If you inherit money or property, you do not report it as income and you pay no tax on receiving it. What confuses almost everyone is that tax is still often paid, just by somebody else and for a different reason. The...