Quote:
Originally posted by bhuvanj
i wanted to ask as we summit taxes in april 2006 for the year 2005 right? and got that t1 slip showing that my rrsp limit is X amount. so right now as i havnt summit taxes for 2006,
1. can i only transfer X $ in rrsp right now or .
2. can i add my rrsp contribution (by roughly calculating b18% )for year 2006(say Y) and add it in that X amount and summit X+Y?
hope i am able to explain?
You can do #2...as already explained by investpro. Deadline is usually the end of feb.
You can also use an online filing system like ufile.ca...to see how you can maximize your returns. So you can carry some contribution room(some of X) to the next year too(if need be).
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hi
Dimple, Investpro, hemzer, jake3d,
thanks for ur replies. and helping me to know more about rrsp.
one more thing.
as u can see that i dont know much about how to manage finance, are there any financial adviser who can help me,regarding how and when to buy home,plan a car ..how to manage for down payment. we went to td,they told us finacial planner only sit with people who has 100k for investing. so if u want to buy a house wait till u get a second income.
as we have single earning right now, its hard for us to manage for mortgage and all.
thanks
bhuwan
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hello!
Location: Western Hemisphere
Posted on: 02-01-07 15:23:38
Pramod Chopra who contributes a lot to this CD is a Financial Consultant. Why don't you seek his assistance and see if he can answer some of your questions?
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Dimple2001
Location: carl sagan's universe
Posted on: 02-01-07 17:44:31
Quote:
Originally posted by bhuvanj
hi
Dimple, Investpro, hemzer, jake3d,
thanks for ur replies. and helping me to know more about rrsp.
one more thing.
as u can see that i dont know much about how to manage finance, are there any financial adviser who can help me,regarding how and when to buy home,plan a car ..how to manage for down payment. we went to td,they told us finacial planner only sit with people who has 100k for investing. so if u want to buy a house wait till u get a second income.
as we have single earning right now, its hard for us to manage for mortgage and all.
thanks
bhuwan
I would be more than willing to meet you to help out. No obligation rendezvous. Please see your msg inbox. To check out your inbox, please click on the 'my home' icon below your login name on the top left hand corner of the charcha section.
Location: carl sagan's universe
Posted on: 02-01-07 18:10:43
Quote:
Originally posted by bhuvanj
i wanted to ask as we summit taxes in april 2006 for the year 2005 right? and got that t1 slip showing that my rrsp limit is X amount. so right now as i havnt summit taxes for 2006,
1. can i only transfer X $ in rrsp right now or .
2. can i add my rrsp contribution (by roughly calculating b18% )for year 2006(say Y) and add it in that X amount and summit X+Y?
hope i am able to explain?
Like I said b4 2) is definitely possible upto a certain point:
Using the example b4. Let us say that X on your Notice of Assessments (NOA) is $5,000.
Your salary for $2006 is $50,000. Y=18% of this = $9,000.
1)If you haven't already contributed this $9,000 (which I hope you haven't-I'll explain later) and wish to contribute now in 2007, then you can contribute $5,000 + $9,000 = $14,000. However you will get a tax refund on only $5,000 not on $14,000. The deadline to get the tax refund on $5,000 is March 1, so you must contribute before then.
2)If however, you have already contributed the $9,000 you will be penalized at the rate of 1% per month on the excess amount. The excess amount is calculated as follows $9,000-$5,000 -$2,000 (the extra allowable amount one can contribute to one's RRSP without penalty) = $2,000.
This penalty is all calculated on a pro-rata basis.
But I deduce from your information that you have not yet contributed for 2006. Am I correct in assuming that? So 1) would be what you're looking at.
Hope all this helps.
Quote:
Originally posted by dimple2001
Pramod Chopra who contributes a lot to this CD is a Financial Consultant. Why don't you seek his assistance and see if he can answer some of your questions?
Thanks for the nice words Dimple.
I am willing to help fellow Desis by answering their questions regarding mortgages, personal Canadian taxes and financial and retirement planning on this forum, through PM, by email or by meeting them personally in my office with out any obligation.
My contact details and email address can be found in the link in my signatures.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Quote:
Originally posted by investpro
1)If you haven't already contributed this $9,000 (which I hope you haven't-I'll explain later) and wish to contribute now in 2007, then you can contribute $5,000 + $9,000 = $14,000. However you will get a tax refund on only $5,000 not on $14,000. The deadline to get the tax refund on $5,000 is March 1, so you must contribute before then.
hmm, I'm a bit confused about this. I tried googling but cannot get an answer. To make it simple lets try rounding out some numbers.
e.g:
I have an earned income of 100,000 for 2006. No pension adjustments or stuff like that. So the maximum deduction limit is 18% of the same=18,000. I contribute 18,000 to my rrsp.
However my NOA(notice of assesment) has a deduction limit of say 50000 (accumulated from previous years). So, being awash in money, I decide to make a contribution of 50,000 more before March 1, to my RRSP. In effect my taxable income for 2006 has dropped from 100,000 to 100,000-18,000-50,000=32,000. Am I correct?
So if my bi-weekly salary deductions were made at source...would I not get a bigger tax refund than if I had made an rrsp contribution of 18000 only?
Thanks for your expertise.
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