How much do you know about financial independence?

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

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.

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.

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?

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.

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.

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

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

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.

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.

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.

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.

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. :)

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.