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How much do you know about financial independence?

May 24, 2024, 4:33 p.m.
Posts: 551
Joined: May 11, 2022

I know enough to be house rich and cash poor.  Thinking of selling the house, paying off the mortgage and buying the entire province of PEI with the net.

May 24, 2024, 6:56 p.m.
Posts: 16033
Joined: Nov. 20, 2002

I would probably say stay the course ^^ BC nuggets, the thing about moving away is if you wana keep owning RE you can't come back to Vangroovy

20 yrs ago myself and 3 sheets were recommending to NBR move narth for the better lifestyle

I think ever one was worried there were not enough starbucks and no avocado toast so no body came

20 yrs later there are vegetables, coffee and mtn biking every where so you just never know

play the long game


 Last edited by: XXX_er on May 24, 2024, 7:26 p.m., edited 4 times in total.
May 24, 2024, 9:59 p.m.
Posts: 1549
Joined: Feb. 17, 2009

Posted by: heckler

T+1 is coming next week. Are you informed?

https://www.rbcits.com/en/how-we-help/t1-faq.page#:~:text=Canada%20(and%20soon%2Dto%2D,Wednesday%2C%20May%2029%2C%202024.

https://www.bankofcanada.ca/2024/05/move-t1-settlement-government-canada-securities-auctions/

https://www.sec.gov/oiea/investor-alerts-and-bulletins/new-t1-settlement-cycle-what-investors-need-know-investor

https://ccma-acmc.ca/en/wp-content/uploads/CDS-Bulletin-Canadas-Transition-to-T1-June-1-2021.pdf

If you own mutual funds, please be aware that Mutual Fund transactions (purchase and redemption of units) are scoped out of the T+1 settlement regime, however, some fund managers (such as where I work) have elected to adopt T+1.

May 24, 2024, 10:50 p.m.
Posts: 18888
Joined: Oct. 28, 2003

Thanks!  Information and discussion is all I try to share with attempts at relevant articles, sometimes just a quick google. 

My brokerage doesn't have any publicly searched information on the T+1 change coming, but it did have a fairly comprehensive internal explanation.

May 24, 2024, 10:57 p.m.
Posts: 18888
Joined: Oct. 28, 2003

Posted by: Kenny

All I know is the year I finally reach the point where my business might make enough money to start building a portfolio, the government massively neutered the advantages of doing so. Pretty frustrating but cest la vie.

A portfolio can pay eligible dividends too, without selling for gains, no?

May 25, 2024, 3 p.m.
Posts: 14950
Joined: Feb. 19, 2003

New inclusion rate on capital gains is only after the first 250K $. And that applied annually (based on a very lazy google).  And it's not applied on your primary residence.

Hardly a 'neutering' for the average person.


 Last edited by: Couch_Surfer on May 25, 2024, 3:11 p.m., edited 1 time in total.
May 25, 2024, 5:01 p.m.
Posts: 15763
Joined: May 29, 2004

Posted by: XXX_er

I would probably say stay the course ^^ BC nuggets, the thing about moving away is if you wana keep owning RE you can't come back to Vangroovy

20 yrs ago myself and 3 sheets were recommending to NBR move narth for the better lifestyle

I think ever one was worried there were not enough starbucks and no avocado toast so no body came

20 yrs later there are vegetables, coffee and mtn biking every where so you just never know

play the long game

No everyone stay away. There are truck nutz and fuck trudeau types everywhere. The farmers market is like a florida gun show.

No ev chargers at the trail heads either....and your truck gets dirty every time you shuttle.

Its really really awful.


 Last edited by: three-sheets on May 25, 2024, 5:03 p.m., edited 1 time in total.
May 25, 2024, 7:44 p.m.
Posts: 34104
Joined: Nov. 19, 2002

Small town is small, including the mentality of the denizen. Way too redneck.


 Last edited by: switch on May 26, 2024, 7:19 a.m., edited 1 time in total.
May 25, 2024, 8:51 p.m.
Posts: 16033
Joined: Nov. 20, 2002

yes but we still have the avocado toast if you know where to get it

May 25, 2024, 9:21 p.m.
Posts: 18888
Joined: Oct. 28, 2003

Posted by: Couch_Surfer

New inclusion rate on capital gains is only after the first 250K $. And that applied annually (based on a very lazy google). And it's not applied on your primary residence.

Hardly a 'neutering' for the average person.

Average person, hardly. As I understand it, for a corporation (ie “my business”), not, since there isnt the 250k annual exemption.


 Last edited by: heckler on May 25, 2024, 9:22 p.m., edited 1 time in total.
May 25, 2024, 10:32 p.m.
Posts: 791
Joined: Jan. 2, 2018

Posted by: heckler

Posted by: Couch_Surfer

New inclusion rate on capital gains is only after the first 250K $. And that applied annually (based on a very lazy google). And it's not applied on your primary residence.

Hardly a 'neutering' for the average person.

Average person, hardly. As I understand it, for a corporation (ie “my business”), not, since there isnt the 250k annual exemption.

Correct. For self employed people investing through their business the new inclusion rate applies immediately. 

Average people are sometimes self employed, and this rule change effects them significantly.

May 26, 2024, 5:04 a.m.
Posts: 18888
Joined: Oct. 28, 2003

https://www.looniedoctor.ca

Kenny, I have only skimmed the articles (too rich for my blood) but this doctor might help, at least to understand your options for your business loonies.


 Last edited by: heckler on May 26, 2024, 5:24 a.m., edited 1 time in total.
May 26, 2024, 10:53 a.m.
Posts: 14950
Joined: Feb. 19, 2003

Posted by: Kenny

Posted by: heckler

Posted by: Couch_Surfer

New inclusion rate on capital gains is only after the first 250K $. And that applied annually (based on a very lazy google). And it's not applied on your primary residence.

Hardly a 'neutering' for the average person.

Average person, hardly. As I understand it, for a corporation (ie “my business”), not, since there isnt the 250k annual exemption.

Correct. For self employed people investing through their business the new inclusion rate applies immediately.

Average people are sometimes self employed, and this rule change effects them significantly.

Is the investment capital considered a business expense? Which would mean that it's effectively going into the investment account untaxed?

If so - the business investment is still going to come out ahead of an individual even with the new inclusion rate.

I just ran the numbers on the new vs old inclusion rate for a business.  On a 100K investment with a 10% compounded return over 20 year period.  Old inclusion nets out around 10% better than the new inclusion rate.


 Last edited by: Couch_Surfer on May 26, 2024, 12:10 p.m., edited 2 times in total.
May 26, 2024, 7:35 p.m.
Posts: 791
Joined: Jan. 2, 2018

Posted by: Couch_Surfer

Posted by: Kenny

Posted by: heckler

Posted by: Couch_Surfer

New inclusion rate on capital gains is only after the first 250K $. And that applied annually (based on a very lazy google). And it's not applied on your primary residence.

Hardly a 'neutering' for the average person.

Average person, hardly. As I understand it, for a corporation (ie “my business”), not, since there isnt the 250k annual exemption.

Correct. For self employed people investing through their business the new inclusion rate applies immediately.

Average people are sometimes self employed, and this rule change effects them significantly.

Is the investment capital considered a business expense? Which would mean that it's effectively going into the investment account untaxed?

If so - the business investment is still going to come out ahead of an individual even with the new inclusion rate.

I just ran the numbers on the new vs old inclusion rate for a business. On a 100K investment with a 10% compounded return over 20 year period. Old inclusion nets out around 10% better than the new inclusion rate.

No, you can't generally expense business investments unless they are expenditures for assets required for operation of the business itself, which would be capitalized and depreciated in most cases. You might make a capital gain on a property, but the initial outlay is just tax deferred in that case as the proceeds of the sale become income.

But I digress, as neither that scenario, nor the 100k over 20 years scenario you mentioned, are really what I was talking about, but I appreciate the thoughts there.

Heckler thanks for the link, he really illustrates how tightly integrated taxes are especially in BC, to insure the overall net tax rate to business owners is pretty much a wash.

That said it does reinforce the idea that for people like me who salary themselves, paying out as much CDA as possible so I can pay myself less salary and leave more $ in the business for tax deferred investment and thus more CDA in the future as thing compound is definitely worthwhile, especially when under the small business tax rate. Because of the compounding nature it may not take much to cross that threshold but that's a future problem and also means if I have a slow year things are more resilient. :)


 Last edited by: Kenny on May 26, 2024, 7:37 p.m., edited 1 time in total.
May 28, 2024, 5:05 p.m.
Posts: 13583
Joined: Jan. 27, 2003

Posted by: three-sheets

Posted by: XXX_er

I would probably say stay the course ^^ BC nuggets, the thing about moving away is if you wana keep owning RE you can't come back to Vangroovy

20 yrs ago myself and 3 sheets were recommending to NBR move narth for the better lifestyle

I think ever one was worried there were not enough starbucks and no avocado toast so no body came

20 yrs later there are vegetables, coffee and mtn biking every where so you just never know

play the long game

No everyone stay away. There are truck nutz and fuck trudeau types everywhere. The farmers market is like a florida gun show.

No ev chargers at the trail heads either....and your truck gets dirty every time you shuttle.

Its really really awful.

From what I heard talking to people when I was there is that there are no plans to grow the town so moving there is inadvisable. There's next to nothing available to live in, be it to buy or rent.

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