The 5 steps

Wars cost a boatload of money. So 101 years ago this week Ottawa dreamed up a way to finance WW1. “Let’s tax what people earn!” said the federal finance minister, a dude with a fetching mustache named Sir Thomas White. “Capital idea!” replied Prime Minister Robert Borden, a Tory from NS. And thus, income tax was born.

The rate ranged between 2% and 25% for households earning over $6,000 and was pegged at 4% for single men bringing in at least $2,000. Yes, it was always intended to be temporary. But as things turned out, the tax didn’t really get rolling until a few months before the war ended. And it was such a money machine! Just like the HST these days. So once the mechanism was in place, it would never be dismantled.

Today the top marginal rate is 53%, and the federal government still doesn’t collect enough to pay its bills. So it runs a deficit. That’s added to the debt, which this week sits at $659 billion (and grows by $49 million per day). So you can pretty much count on higher taxes going forward. After all, we have a pipeline to pay for.

“From time to time you mention some ways families can save tax,” says Jason, who earns $220,000 along with his wife and thinks he’s being raped by the system. “Can you give me just the top five things to do? This is insane.”

J got a promotion and recently started earning $165,000, while Peg makes $55,000 as a dental office admin. No kids. No pets. No pensions. A mortgage. A Jetta and, in their late thirties, way too little saved.

So, here are five concrete, immediate things you can do to whittle away at your tax bill while seriously starting to invest more of the household cash flow.

To start, imagine if you could invest money inside an RRSP, receive a big tax deduction, then somehow arrange to remove the money later without having to pay all the tax back? Well, you can do exactly that with a spousal plan. In any family where a big income disparity exists, this is Strategy No. 1.

In this case Jason can make the max RRSP contribution ($26,500) and put it into a spousal for Peg. He pays $12,353 less in income tax and after three years the funds become his spouse’s property. She can withdraw them at her marginal tax rate (29% as opposed to 44%). Or, if she’s not working, effectively tax-free. Bingo.

Now, consider setting up a joint non-registered investment account. Also called a ‘cash’ account, this is where you earn investment returns in the form of lowly-taxed capital gains and dividends. By making it joint (instead of Jason’s name) the returns can be split evenly between the two spouses – so half of the investment income is taxed in her hands. In that case Peg would get to keep 86% of the profit on assets that grew in value.

By the way, a joint NR account is a must for estate planning. If one of you is carried off by an antelope (happens) then the funds automatically become the property of the others spouse. No lawyers. No will. No probate. No tax.

Thirdly, Jason could loan Peg money for her to invest. The CRA has a “prescribed loan rate” which is a ridiculous 2%. So all she needs to do is pay him that amount of interest on an annual basis. All of the investment gains are hers – none is attributed back to him for tax purposes (even though that’s where the money came from) – and Peg can even deduct the 1% interest paid from her taxable income. Sweet.

Of course, these lovebirds should also be organizing their regular expenses to save tax. In many marriages people get it all wrong – having the main wage-earner invest and the other person buy the kibble. Nope. In this case J should pay all expenses and P should invest all of her after-tax income. That way the gains made on those investments will be taxed at a lower rate. How does that not make sense?

And, fifth, make sure your TFSAs are filled, and stay brimmed – and Jason can give Peg the money to do that. There will be no attribution back to him for the funds he hands over which she can then invest for taxless gains. They just need to ensure the TFSA is invested by her directly after she receives the gift, then make each other the “successor holder” on the accounts. More antelope protection.

Of course there are lots of other things this couple can do, but this is a great start. Besides we need some space left in this blog to diss realtors…

$     $     $

Today (September 18th) is supposed to be The Beginning of The End for the Dark Times for real estate buyers, at least in the Big Smoke. After seven years of fighting the federal competition cops over keeping MLS data secret from consumers (and losing), Toronto realtors woke up to this statement on Monday:

Matthew Boswell, Interim Commissioner of Competition, issued the following statement today regarding the Toronto Real Estate Board’s (TREB) compliance with the Competition Tribunal’s June 2016 order addressing their anti-competitive conduct:

“Following the Supreme Court’s recent decision not to hear TREB’s appeal, the Bureau understands that TREB will implement the Competition Tribunal’s Order on September 18, 2018. The Order requires TREB to end its anti-competitive practices, thereby giving home buyers and sellers in Canada’s largest real estate market access to a greater range of innovative service options, delivered through greater competition among TREB’s members.

We will be closely watching to ensure that the letter and spirit of the Tribunal’s order is adhered to, so that consumers can finally benefit from the competition and innovation they have been waiting for.”

So, there you have it. In the hours and days to come, password-protected sites will be springing up all over, providing consumers with vital stats they could not see before. Days-on-market. Sold histories. Listing and re-listing dates. The whole nine yards.

Will it make a difference to the market? Maybe. Informed consumers are less likely to be lured into blind auctions, bully offers, bidding wars and other high-stress situations where arrogant rock star realtors and greedy vendors intimidate buyers and squeeze prices higher. At least, that’s the hope. Finally. But I’m watching.

151 comments ↓

#1 DoufGord's Canadian Millenial on 09.18.18 at 4:46 pm

I’m so horny right now to discover websites that will release real estate data for Toronto.
This is more exciting that seeing our modern feminist teachers pose nude for feminist and LGBT causes.

#2 Arctic Gringo: Qalunaaq on 09.18.18 at 4:49 pm

Early, early. Happy Tuesday!

#3 big oil still pays my bills on 09.18.18 at 4:50 pm

Garth…we need to talk…..so I plan to buy over $100K RRSP this year…..and 3 years from now, wife can draw with no tax? she doesn’t work….. this sounds too easy.
Dave

#4 Tax Facts on 09.18.18 at 4:50 pm

“Thirdly, Jason could loan Peg money for her to invest. The CRA has a “prescribed loan rate” which is a ridiculous 1%. So all she needs to do is pay him that amount of interest on an annual basis. All of the investment gains are hers – none is attributed back to him for tax purposes (even though that’s where the money came from) – and Peg can even deduct the 1% interest paid from her taxable income. Sweet.”

***************************

The interest rate on prescribed rate loans is up to 2% thanks to all the BOC hikes the past year or so. While the lucrative 1% rate is now gone and may never return, it still makes sense to do this type of loan now at 2%. It’s only going to go higher from here, and the awesome thing about these things is you can fix the interest rate at 2% forever no matter what the future BOC rate is.

You are correct, of course. I was just being nostalgic… – Garth

#5 ArcticOutback on 09.18.18 at 4:57 pm

Daily reader, infrequent poster. Wanted to take this opportunity to sincerely thank you for all of your work that goes into this outstanding blog. Mandatory suck up over with; I have never agreed with the at times obscenely high commissions that Real Estate agents recieve and how these percentages have held steady even had home prices have increased tenfold over the years. Obviously there are excellent experienced agents out there whose savvy saves their clients thousands. I was wondering if you see commission rates changing or capped in the future?

#6 In Garth We Trust on 09.18.18 at 4:57 pm

Sage advice from the bearded mystic, all knowing, all wise, financial tea leaf reading oracle that runs this pathetic blog. Any chance Captain Garth of starting a new political party in this fair land and having your blog dogs run in all the ridings? You must have a blog dog in all the ridings….

#7 Stan Brooks on 09.18.18 at 4:58 pm

Much higher taxes, much higher prices at the stores:

Grocery store chain CEOs warn higher food prices coming amid cost pressures

https://ca.finance.yahoo.com/news/grocery-store-chain-ceos-warn-185440966.html

And people up to their eyeballs in debt, unable to scrap $ 200 in case of emergency. A G7 ‘economy’. ‘High’ standard of living.

#8 Michael on 09.18.18 at 4:58 pm

Did the prescribed rate note bump up to 2% this spring?

#9 dakkie on 09.18.18 at 4:59 pm

How Millennials Impact the Housing Market

http://www.investmentwatchblog.com/how-millennials-impact-the-housing-market/

#10 Swm on 09.18.18 at 5:01 pm

For #2 with the joint accounts, shouldn’t they follow attribution rules? Unless they ignore these rules, tax will be the same. They can save on broker and other fees.

#11 In Garth We Trust on 09.18.18 at 5:04 pm

01 Entrepreneur on 09.18.18 at 3:04 pm

“We need a Canadian superhero!:

That superhero runs this blog cowboy! The bearded, former parliamentarian, denouncer of corrupt politicians, voice of the little guy, holder of the best financial blog in Canada, a lone voice crying out in the financial wasteland known as Canada, Harley riding badass and all round jolly good fellow fits the superhero bill perfectly!

#12 Lawnboy on 09.18.18 at 5:12 pm

Hey,….could I use that Dog in the Iditarod Race?
Sandle her up and “gitter done” . Just need the one dog.

LB

#13 Stone on 09.18.18 at 5:18 pm

By the way, a joint NR account is a must for estate planning. If one of you is carried off by an antelope (happens) then the funds automatically become the property of the others spouse.

—————

Can you provide source or proof of people being carried off by antelopes? I’d like to create a buzz around this and market a new insurance product to protect poor unsuspecting sheeple who may inadvertantly be carried off by antelopes. I’m thinking this could be more popular even than critical life insurance or end of the world insurance.

I so enjoy the comedic relief this blog provides on a daily basis.

#14 yorkville renter on 09.18.18 at 5:23 pm

any good realtor would have provided the data in question… just saying.

#15 Adele on 09.18.18 at 5:34 pm

Garth, you’ll be pleased to know that my next album will be titled 65. I’m don’t expect that you will be around to enjoy it.

However, I don’t understand the negativity. Don’t you remember how really annoying the Gypsy Kings were?

btw, if you paid the underlings more than $25K, they wouldn’t need to try and sell that 130% bs.

#16 Linda on 09.18.18 at 5:38 pm

Like ‘Stone’, I’m agog with anticipation regarding someone being carried off by an antelope. Hitherto I had always presumed them to be shy, retiring mammals with herbivore tendencies. Or are you referring to the fact that some antelope may be a vector for bubonic plague? The revenge of the antelope!

Herbivores – deadlier than you think.

#17 ELI5 on 09.18.18 at 5:45 pm

“In this case J should pay all expenses and P should invest all of her after-tax income. That way the gains made on those investments will be taxed at a lower rate. How does that not make sense?”

It’s not making sense to me. I get that it would make sense to pay for tax deductible things but otherwise, if all the money ends up in the same joint account, what difference does it make?

#18 crossbordershopper on 09.18.18 at 5:48 pm

so so so a regular

#19 Marco on 09.18.18 at 6:06 pm

How about 5 concrete things a single guy can do to avoid taxes…

#20 crossbordershopper on 09.18.18 at 6:08 pm

so compared to the us, which is the only other country that you really can since this young couple with no kids and is mobile can save themselves 3 million in taxes by simply going to the usa.
with savings you can make a case that they will be 10 million wealthier with the tax savings differential over their lifetime.
simple tax savings differential, no changes to lifestyle or opportunities which are much better in the usa then in SOCIALIST LAND.
a couple married filing jointly, $220 canadian, converted to american is $170K
he structures his job as a 1099, he pays himself 35K from business pays 15.3% in ss and medicare tax.
so thats $5300. which you will see will be all his tax, which isnt tax its his pension and health care costs.
$165cdn is $127K but there are many things that he cant write off now that he can in running his business so he can easily come up with 17K in personal expenses, at home, auto , cell, food, so $110K-35K salary to himself from his business.(tested many times at that level from irs as base)
there is a 20% deduction from income from the business is $75K minus 15K equals $60us net plus her 55K cdn(42 us). which we cant really do much.
so we are agi at 102K us.
now 401K on self employeed easy $40k , your saying no one saves 40K for an rrsp they do when they dont pay taxes which i will show you. thats 62K. i can go through detal of 401 , 401k, self employeed income 401K but lets keep relatively straightforward. i could of gone into real estate depeciation etc, but lets say he wants to just relax with his dog on weekends.
so together we are at 62K us now $30K in mortgage interest on their 2 homes, yes they should own 2 homes and right it off, why just one. 750k mortgage max say 4% on 30 year fixed equals $32, now the new salt deduction is 10K which is the property tax level in florida for the two homes, a little high but these are nice homes, you get real nice homes for that price down there. why live in a shoe box like in canada
so now $22k, no tax in florida, so 10% is 2.2K in tax total.
that couple in canada would pay 40K in tax between the two of them , 12 cdn for her on the 55 cdn, and 50 cdn on his 165. so 62K is about 48k us.
and that tax savings alone funds their 401k.
with 30 years and better investments in the us marketplace, like is it not self evident right now that the canadian investment climate sucks. innovative, dynamic worldwide conglomerates are all us based.
so 40k for 30 years is millions of dollars, millions, and then your worried about dividend and interest, well their zero, yes zero at 77K above that like 10 and 15% straight , for a couple to make 77K in dividends you will need millions and they will have, i just outlined.
thei retiement is taxable but thats next course to withdraw 401k without tax.
so please pack your bags and come down.

#21 Blogdog123 on 09.18.18 at 6:11 pm

How about sites without passwords to see all real estate data…. that would be real progress…

#22 Reximus on 09.18.18 at 6:13 pm

I have no idea why this TREB ruling is such a big deal, for prospective buyers…if they didnt get this info before they bought (which was easy) they’re total dingbats

#23 Blackdog on 09.18.18 at 6:15 pm

Anyone using spousal RRSPs should be aware of this withdrawal rule:
“The tax on withdrawals from a spousal plan will be taxed in the planholder’s hands only if no contribution has been made to ANY spousal RRSP in the year of withdrawal or the two preceding calendar years.”

I think I have seen Garth suggest that the 3 year window restriction on withdrawals only applies on a per account basis (sorry Garth if I am mistaken).

https://www.moneysense.ca/columns/super-saver/the-facts-on-spousal-rrsp-withdrawals/

#24 Doug t on 09.18.18 at 6:18 pm

TREB the leeches of the industry – these people remind me of the stuff I scrape off the bottom of my boots after being in my buddies barn

RATM

#25 Mark on 09.18.18 at 6:29 pm

So when does the curtain get pulled back on Ottawa sales history / data? Any insider info on that, Garth? Prices continue to remain sticky here no doubt in part to stable government wages but also thanks to continuing realtor games and gimmicks. and a constant supply of gullible buyers.

#26 Capt. Serious on 09.18.18 at 6:35 pm

We’re doing most of Garth’s list of 5. Still need to get the joint account set up. I’d never thought much about consolidating spending and saving with the higher/lower income person until a year or so ago, but we’ve got that set up now.
Q: Can one take a sole account and make it joint going forward? Though I guess this complicates the gain attribution / splitting?

#27 TheUnhealthy on 09.18.18 at 6:50 pm

It’s a low income year for me. No extra $ to invest. Am I correct in thinking that I can perform a ‘contribution in kind’ from the existing positions in our joint margin account into my RRSP and deduct that same amount from my taxable income? Paying the appropriate taxes on the capital appreciation, of course.

#28 Never Trust Anyone Over 55 on 09.18.18 at 6:52 pm

So, I finally got the Vancouver house sold that I inherited from my mom who paid 33k for it.

2.1M coming my way.

So, my wife doesn’t work. Makes zero. I am going to put it all in her name.

#29 Happy Housing Crash Everyone! on 09.18.18 at 6:53 pm

HAPPY Happy Housing Crash Everyone!!

We are finally free from SHYSTER lies. I cant wait for when revisions are made on monthly sales . SHYSTERS are finished. The truth will now get out

Happy Housing Crash Everyone!

#30 WelcometoSlurrey on 09.18.18 at 6:54 pm

Garth , any word if this type of data release is going to happen in the Lower Mainland ?

#31 Karl on 09.18.18 at 6:55 pm

Garth, what if the the couple each make relatively the same income? Can they pile their cash into one TFSA to maximize compounding?

Nope. – Garth

#32 Stats freak on 09.18.18 at 6:55 pm

Can I make my sister the successor holder of my TFSA? Or does it have to be my husband?

Spouses or dependent children. – Garth

#33 Waiverless on 09.18.18 at 7:09 pm

#28 Never Trust Anyone Over 55

What was the assessed value?

#34 Shawn Allen on 09.18.18 at 7:11 pm

Compound Math

#31 Karl on 09.18.18 at 6:55 pm
Garth, what if the the couple each make relatively the same income? Can they pile their cash into one TFSA to maximize compounding?

Nope. – Garth

********************************
In any case, earning a given percent will compound up to exactly the same amount whether in one account or two.

#35 AJ on 09.18.18 at 7:11 pm

Husband has to report the 2% interest received as income, but still a good plan provided we’re taking big $$ investment returns.

#36 Blogdog2017 on 09.18.18 at 7:13 pm

“By making it joint (instead of Jason’s name) the returns can be split evenly between the two spouses – so half of the investment income is taxed in her hands.”
**********************************************

Can anybody please clarify the income splitting rules. Do the spouses need to contribute evenly in order to split the investment income evenly?

If one spouse makes 100% of the contributions, can the income still be split evenly or in some other percentage?

Thanks.

Once you open a joint account you own the money jointly. Ensure she loves you. – Garth

#37 Ace Goodheart on 09.18.18 at 7:15 pm

A while back there was talk of reducing the salaries of senior and high wage earning Federal Civil Servants. The idea was that managers, CEOs, COOs, judges, those high up in the government, top military brass, and others simply earned too much money.

The reaction was swift. Universal condemnation by these individuals to this unholy grab against their incomes. There was talk of requesting salary increases.

So what does the government do?

What would you expect a bunch of trust fund kids making their money off of low taxed dividends and capital gains to do?

They increased the top marginal tax rate for salaried individuals.

This had the immediate effect of reducing the incomes of high wage earning civil servants.

Of course anyone else on a salary got whacked too.

But the smell of victory was clear in the air.

Take that, you working stiffs.

#38 Triplenet on 09.18.18 at 7:31 pm

#21 Blogdog 123
Why don’t you just download the internet?
It’s free. Perhaps you’ll put it in a neat package for us to download, add your comments and solve all the real estate problems for the rest of us.
It may be a full time job….but you’re the man.
Especially if it’s free.
Your the best.

#39 Barb on 09.18.18 at 7:34 pm

Clear and concise example of what J & P — and others in a similar situation — should be doing, Garth.

Well done, as always, Mr. T.

#40 Jim Brooks on 09.18.18 at 7:47 pm

#20 CrossBorderShopper

Get the memo out to the over 200 million Americans who can’t afford a $1000 emergency hospital visit or a $500 emergency car repair. As a snow bird that goes to Florida every year tells me, the poverty he sees en route is not seen in any part of Canada and he has driven it from coast to coast. A buddy of mine just asked for money to help cover $50k hospital costs for a friend of his in your great USA. What a joke, the leading cause of bankruptcy in the USA is medical treatment costs. I went to a concert in Detroit last year and couldn’t wait to get back to good ‘ol Windsor. Security checks at a theatre that were just like an airport security check. A friggin theatre! Enjoy your gun totting country and 200 million who can’t afford a basic emergency expense.

#41 marcus on 09.18.18 at 7:52 pm

Boom! Elevated debt levels remain a vulnerability for the economy. Canadian households are the most leveraged in the Group of Seven, with total debt of about C$2.19 trillion ($1.68 trillion), or C$1.69 in debt for every C$1 of income. That jeopardizes the sector’s future contribution to real gross domestic product growth. -Bloomberg

#42 Aaarrr on 09.18.18 at 7:53 pm

The returns CANNOT be split evenly in a joint NR account. You must report based on how much each spouse contributed to the account.

https://www.canada.ca/en/revenue-agency/services/forms-publications/tax-packages-years/general-income-tax-benefit-package/non-residents/5013-g/general-guide-non-residents-total-income.html#P630_71510

Example
Sally and Roger received a T5 slip from their joint bank account showing the $400 interest they earned in 2017. Sally had deposited $4,000 and Roger had deposited $1,000 into the account.

Roger reports $80 interest, calculated as follows:

$1,000 (his share) ÷ $5,000 (total) × $400 (total interest) = $80

Sally reports $320 interest, calculated as follows:

$4,000 (her share) ÷ $5,000 (total) × $400 (total interest) = $320

You seriously believe CRA parses every couple’s joint investment account for the source of the funds? In the real world joint money is joint money. Just consider the proceeds of a house sale, for example. – Garth

#43 LP on 09.18.18 at 7:54 pm

#32 Stats freak on 09.18.18 at 6:55 pm
Can I make my sister the successor holder of my TFSA? Or does it have to be my husband?

Spouses or dependent children. – Garth
************************************
But, if she left her sister the funds in that TFSA would she not inherit it tax free? Then she could immediately open her own account and deposit the inheritance or top up the account she already has.

She could inherit the funds but not add them to her TFSA. Any growth in the account between death and distribution would be taxable to the beneficiary. – Garth

#44 yvr_lurker on 09.18.18 at 7:55 pm

Those five rules are great if one person makes considerably more than the other. However, in our case we are stuffed. We both are high earners, with no extra RRSP or TFSA room left. In our BC, 49.8% and 45% marginal rates for us. Although we are grateful, and I hope the Gov’t uses the $$ well, the nearly 50% marginals do not inspire us at kill ourselves any further with work to get a salary increase.

#45 Sam on 09.18.18 at 8:00 pm

>>Now, consider setting up a joint non-registered investment account. Also called a ‘cash’ account, this is where you earn investment returns in the form of lowly-taxed capital gains and dividends. By making it joint (instead of Jason’s name) the returns can be split evenly between the two spouses – so half of the investment income is taxed in her hands. <<

I asked my advisor at one of the robos about this, and he said that's not the case. CRA would require us to properly attribute the source of the invested funds, and the proceeds would be taxed accordingly.

So what's right?

In the real world, I am. – Garth

#46 prash42 on 09.18.18 at 8:01 pm

Alternatively, consider working in a low tax country for a few years, particularly if you’re in prime earning age. We did this for 7 years before immigrating to Canada, each year saving about 5x what we save in Canada. For pretty much the same combined salary and living expenses as in Toronto. The math will vary depending on your salary, but the savings are material for most people. Plus living in a different culture is an eye opening experience.

#47 rental property math on 09.18.18 at 8:10 pm

#14 yorkville renter on 09.18.18 at 5:23 pm
any good realtor would have provided the data in question… just saying.

—————–
I emailed a realtor who advertises 0.5% listing commission and 1% cash back when buying. I simply said I might be selling in 2 years or so and would like to keep an eye on the sold data. He set me to receive all the info I requested and I never heard from him again. I’ll use him to sell property in the future.

#48 Big Fan on 09.18.18 at 8:17 pm

Hi Garth, I am new to this so I don’t get why you need to loan your spouse money to invest. Can’t you just simply give your spouse money to invest in her NR account? Thanks.

#49 Wrk.dover on 09.18.18 at 8:20 pm

Speaking of Robert Borden, soon to exit the face of the $100 bill, his mansion is at 1991 Prince Arthur. Going up the hill on Quinpool from the Arm, (in Halifax), it is a right. First place on left after corner. Now a condoed fiveplex.

#50 Mean Gene on 09.18.18 at 8:21 pm

Hypergamy has worked out very well for Peg.

#51 I can spell millennial on 09.18.18 at 8:30 pm

Isn’t the government discriminating against single people? Nice cuts for couples who already save on living expenses. What about some love for us?

#52 Aaarrr on 09.18.18 at 8:31 pm

Garth, I thought you advocated for avoiding tax within the rules, not for breaking the rules? Just because it’s difficult for the CRA to catch you, does that mean it’s ok?

How about if one spouse has a huge income and the other stays at home with zero income. You really think the CRA is going to be just fine with declaring that the investment income is split between them evenly when it’s completely obvious that one never contributed? There are many examples like this in the “real world”.

In a joint account they own the funds equally. Similar to gifting money to a spouse, or funding a partner’s TFSA. – Garth

#53 WUL on 09.18.18 at 8:36 pm

Were I TREB, I would go to the Hague and appeal this abhorrent court ruling. Justice can still be found. After all, “…the law is for sale, especially for those too big to fail”.*

WUL

* Attribution: Some roots/folky song I heard on the best radio station evah. CKUA (the former U of AB student radio station out of YEG).

#54 meslippery on 09.18.18 at 8:38 pm

“Carried off by an antelope”
Not if the postes go on strike.

#55 D.D. Corkum on 09.18.18 at 8:39 pm

“In the real world, I am. – Garth”

What you can get away with isn’t the same as what is the right thing to do.

I’m not saying you should absurdly track every household expense and receipt… if the contributions are modestly within the means of both partners then there’s no shame in calling it 50/50. But if only one partner has an income, then it would be kind of difficult to justify.

Hardly. Married people co-mingle their money constantly. In fact, they should. This is matrimonial property and they are an economic unit. – Garth

#56 WUL on 09.18.18 at 8:51 pm

The #1 reason high taxes are absolutely necessary:

HYAS, Sask. — A rural politician in eastern Saskatchewan says he’s at a loss to explain why a newly built bridge collapsed just hours after opening.
Reeve Duane Hicks said the Dyck [sic] Memorial Bridge in the Rural Municipality of Clayton looked good on Friday morning when it opened to traffic.

“The company did not build a bridge to fall over. We sure didn’t buy a bridge to fall over,” Hicks said. “Nobody expected this.” [Fake News – I did.]

https://calgaryherald.com/pmn/news-pmn/canada-news-pmn/new-bridge-collapses-into-river-in-rural-saskatchewan-hours-after-opening/wcm/55a2d84d-a9c3-47f9-a70f-ed9fd3692728

Amused on the Prairies,

WUL

#57 Spectacle on 09.18.18 at 8:57 pm

#13 Stone on 09.18.18 at 5:18 pm
By the way, a joint NR account is a must for estate planning. If one of you is carried off by an antelope (happens) then the funds automatically become the property of the others spouse.

—————

Can you provide source or proof of people being carried off by antelopes? I’d like to create a buzz around this and market a new insurance product to protect poor unsuspecting sheeple who may inadvertantly be carried off by antelopes. I’m thinking this could be more popular even than critical life insurance or end of the world insurance.

I so enjoy the comedic relief this blog provides on a daily basis.
————– ( ) —————-

Just sayin…. In the interests of better financial planning and risk management….

Antelope Attacks Mountain Biker! INSANE! – YouTube
https://www.youtube.com › watch

#58 DON on 09.18.18 at 9:06 pm

#24 Doug t on 09.18.18 at 6:18 pm

TREB the leeches of the industry – these people remind me of the stuff I scrape off the bottom of my boots after being in my buddies barn

RATM
*************************
Weed? assuming a BC Barn

#59 Frustrated Kiwi on 09.18.18 at 9:09 pm

#5 ArcticOutback: I was wondering if you see commission rates changing or capped in the future?

I think I can answer that one since you didn’t get a comment back. Our pro-free-market host is unlikely to support capping rates, if you mean capping them by using regulations. Hard to argue why the free-market isn’t working unless Canada has some laws around this I’m not aware of? There are low-rate low-service agents already, aren’t there? I would personally guess that with the rise of more available info we will see more people using the lower service options. But Garth has argued previously why it usually makes sense to use a full service agent (and his arguments seemed logical to me).

#60 Karl on 09.18.18 at 9:10 pm

34 Shawn Allen on 09.18.18 at 7:11 pm
Compound Math

#31 Karl on 09.18.18 at 6:55 pm
Garth, what if the the couple each make relatively the same income? Can they pile their cash into one TFSA to maximize compounding?

Nope. – Garth

********************************
In any case, earning a given percent will compound up to exactly the same amount whether in one account or two.

——————————

I should clarify a few things. We don’t have enough leftover cash to top up two TFSAs (this is after RRSPs topped off). My TFSA has a substantial amount, my wife’s does not. Would it not make sense to pile in our cash into my TFSA so as to have yearly 6% interest return on a vastly larger amount?

We have a joint bank account so all the money comes into and out of the same place.

#61 DON on 09.18.18 at 9:11 pm

https://www.cbc.ca/news/canada/british-columbia/158-laid-off-as-videogame-developer-capcom-shutters-burnaby-office-1.4828997

Office in Japan…at least their are giving their former employees severance. Hopefully that helps out (especially with the cost of living in Van). All the best to those employees.

Hopefully this isn’t the start of something.

#62 Bobby on 09.18.18 at 9:17 pm

Taxes are high and increasing because politicians have lead Canadians to believe that everything is free. Just look out here at loopy BC. Nothing is free, it is us that are paying. People here are flummoxed when they see the price of everything rising.
He financial illiteracy of Canadians is mind numbing.

#63 Karl on 09.18.18 at 9:18 pm

To go further, I understand if I gave my wife half of my TFSA funds to open hers and both got 6%, it would be equal to the entirety of funds gained if everything was in one account.

But is there any point to the splitting it up? I’d understand for RRSP purposes, but not TFSA.

#64 Eco Capitalist on 09.18.18 at 9:26 pm

@ #19 Marco

I second that, though to satisfy the 21st century thought police, we should be asking Garth about 5 concrete things single PEOPLE can do to reduce their tax.

#65 NEVER GIVE UP on 09.18.18 at 9:48 pm

In Los Angeles now in the land of the Stockholm syndrome! This is not the land of the free these people are bound with Incredible regulation form-filling an officious paperwork, astonishing in my opinion. I went to pay a $65 Shipping Company bill at the Bank of America and as a foreigner they won’t take my debit card even in their ATM machine but Walmart will! Anyway I went to pay the $65 bill and the teller said we don’t accept cash! Only if you’re a bank account holder can I accept cash from you! But even more astonishing is the fact that they took a check from me from another bank. Why would they want a stupid check that I scribbled on a piece of paper that could easily be fake instead of cash? The reason is is that short of putting a chip in your arm they want to know everything about you what you did where you spend your money and they want to crush the freedom of cash out of the system it’s just the beginning.
Just try to get a bank account as a Canadian with proper business visas in this country! Not one American owned bank will accept you none of them! The only way you can get an account here as a business even though you have the right to be here and the right to do business is to use a bank that’s been bought out by a Canadian Bank. and that is not because they cannot open an account it’s because they don’t want to open an account because they all have Stockholm Syndrome from 9/11 and the ensuing incredible paperwork that the government keeps on them to track foreigners!
My assessment is that this is the least Free Nation on Earth! I still want to do business here and I’m following the rules but as a foreigner here I’m treated way differently and the roadblocks are immense! BTW when I tried to use their ATM machine it just kept saying transaction cancelled. I used several accounts all were transaction cancelled! I called my bank while I was standing in front of the ATM machine they said there is nothing wrong with my account. It’s just Bank of America won’t deal with foreigners! Would we treat Americans This Way in Canada?

#66 Vampire studies on 09.18.18 at 9:52 pm

27 Unhealthy (hoping you get better). If you are having a low income year, why bother with RRSP contribution? Save it for a higher earning year.

#67 WUL on 09.18.18 at 9:58 pm

#63 Eco Capitalist on 09.18.18 at 9:26 pm
@ #19 Marco

I second that, though to satisfy the 21st century thought police, we should be asking Garth about 5 concrete things single PEOPLE can do to reduce their tax.
************

Top 4:

1. Get married.
2. Don’t declare tips at the coffee shop as income.
3. Lie on your tax return.
4. Become extremely rich. Cap gains, dividend credits offshore accounts and high priced tax lawyers keep you out of the soup.

#68 Lead Paint on 09.18.18 at 10:01 pm

#22 Reximus on 09.18.18 at 6:13 pm
I have no idea why this TREB ruling is such a big deal, for prospective buyers…if they didnt get this info before they bought (which was easy) they’re total dingbats
——————————————————–
So when you are researching the most important investment you’ll make in your life, would you prefer to access pertinent information directly as you wish, or call a biased salesperson to (hope to) get the information?

Does your livelihood involve controlling the pricing information doled out to otherwise ignorant consumers? If so, you can probably answer your own question with a bit of thought.

I’m assuming you Google several times a day and find it preferable that some biased human does not reside between you and your information request….

Or look at it this way – why is ‘Google’ a word? People love access to information.

Or would you rather try to track down The Honourable Mr. Garth Turner each night to get his thoughts on…. just about everything?

Give me a shout if you want more information on this topic, I’ll respond at my leisure, and probably only if I think I can make some coin off of you.

#69 DON on 09.18.18 at 10:16 pm

https://www.theglobeandmail.com/business/article-grocery-ceos-warn-higher-food-prices-coming-amid-cost-pressures/

https://www.theglobeandmail.com/business/article-real-estate-developer-fortress-faces-foreclosure-battles-as-mortgage/

#70 Jim Brooks on 09.18.18 at 10:21 pm

#64 Never Give Up

Thanks for the news from the ground in Trumpland. What a joke!

#71 Newcomer on 09.18.18 at 10:35 pm

#45 Sam on 09.18.18 at 8:00 pm

I asked my advisor at one of the robos about this, and he said that’s not the case. CRA would require us to properly attribute the source of the invested funds, and the proceeds would be taxed accordingly.

——

If spouse A contributes 2K and spouse B contributes 4K, and the return is 300, which they declare as 150 each, and the tax man says, “Wait a minute,” can they not just stated that B gifted 1K to A at the time of the deposit?

Wouldn’t same thing apply to the fellow who (apparently, unnecessarily) wanted to but both spouses’ money in one TFSA. Can’t you accomplished that by gifting it to them?

On a related note, what’s the point of being married and not sharing everything? I mean, I get it, not everyone can be trusted, and people change and all. But then why get married? Why not just live together?

#72 Jimers on 09.18.18 at 10:36 pm

If you dont like paying Income Tax move to Puerto Rico! Where everybody collectively refuses to pay US Federal Income Tax. Just dont expect any FEMA aid if you have a disaster.

#73 Russ on 09.18.18 at 10:55 pm

WUL on 09.18.18 at 9:58 pm

#63 Eco Capitalist on 09.18.18 at 9:26 pm
@ #19 Marco

I second that, though to satisfy the 21st century thought police, we should be asking Garth about 5 concrete things single PEOPLE can do to reduce their tax.
************

Top 4:

1. Get married.
2. Don’t declare tips at the coffee shop as income.
3. Lie on your tax return.
and more
=============================

Thanks for the smile LUW

When I saw the request of 5 for single people, my first thought too was “get married” .

The thought did not accompany a comprehensive rumination and list such as yours.

I just thought it will give him years of something else to worry about.

Cheers, R

#74 Shawn Allen on 09.18.18 at 10:58 pm

TFSA splitting

#62 Karl on 09.18.18 at 9:18 pm
To go further, I understand if I gave my wife half of my TFSA funds to open hers and both got 6%, it would be equal to the entirety of funds gained if everything was in one account.

But is there any point to the splitting it up? I’d understand for RRSP purposes, but not TFSA.

************************************
Karl, if you only have cash to contribute to one TFSA, I see no reason not to put it all into your own TFSA. Putting half in your spouses TFSA will not change the compounding . But it would become 100% her money and why give her that control of your money for no benefit? But if it is her money then it seems fair to go into her name.

#75 Ponzius Pilatus on 09.18.18 at 11:06 pm

#28 Never Trust Anyone Over 55 on 09.18.18 at 6:52 pm
So, I finally got the Vancouver house sold that I inherited from my mom who paid 33k for it.

2.1M coming my way.

So, my wife doesn’t work. Makes zero. I am going to put it all in her name.
—————
I just forwarded this to the CRA.
Get prepared for a knock on your door.

#76 theoryAndPractice on 09.18.18 at 11:14 pm

#48 Big Fan on 09.18.18 at 8:17 pm
————-
Keyword here is tax deductibility of interest paid on a loan, prescribed rate,

Here it is CRA explanation if you are wondering further ;

https://www.canada.ca/en/revenue-agency/services/tax/technical-information/income-tax/income-tax-folios-index/series-3-property-investments-savings-plans/series-3-property-investments-savings-plan-folio-6-interest/income-tax-folio-s3-f6-c1-interest-deductibility.html#N10241

.. And further reading is here with a tax court case ;

#2- https://business.financialpost.com/personal-finance/taxes/what-you-need-to-know-about-deducting-interest-on-investment-loans

and even further reading ;

#3- Prescribed rate , when & how payments must be done and more:

https://www.advisor.ca/tax/tax-news/last-chance-for-family-loans-prescribed-rates-to-rise-april-1

#77 Danny on 09.18.18 at 11:29 pm

Garth we have a Victory…..thank you for educating us on the unfair practice of the Real Estate cartel….for many years. Your courage is recognized.

White collar corruption……does take a long time to go through the judiciary.

See Tricky Dougie Ford…….why the little guy needs the Judiciary.

In this case the real friend of the little guy…..is the judiciary….not a politician who created chaos in Toronto City Hall many years ago……and now at Queens Park.

Will Ford stay out of this…or invoke the “not withstanding clause ” here too…..to help his real estate friends?

Will we now see the belly of the Cartel?

Hope so.

#78 Paddler on 09.18.18 at 11:29 pm

Why was this Tribunal order not implemented across Canada in every province?

#79 Oft deleted much maligned stock.picker on 09.18.18 at 11:39 pm

Wow….the media finally reports that Trudeau’s strategy on NAFTA is specific to dragging his heels and waiting on a Democratic Party clCongess to oust Trump.

https://www.reuters.com/article/us-trade-nafta/canadas-trudeau-under-growing-pressure-to-get-nafta-deal-done-idUSKCN1LY2RY

Liberals have never wanted a deal obviously, they are part of the Obama led “resistance” in the US and Soros fronted “Globalist Movement” in EU. He doesn’t give a rats ass about Canada. The proof has been there all along but the barking dog CBC goons and American leftist propagandists have been pulling Juniors strings all along. Frankly I wasn’t surprised his sex assault case has vanished from the airwaves…..but sinking hundreds of thousands of jobs in Canada over a political movement on another continent is deplorable.

#80 -=jwk=- on 09.18.18 at 11:54 pm

@ #64

Just try to get a bank account as a Canadian with proper business visas in this country! Not one American owned bank will accept you none of them! The only way you can get an account here as a business even though you have the right to be here and the right to do business

You need a USA mailing address, a piece of ID and a tax number to open a bank account in USA, or Canada. If you are doing business in USA (not just holding a business visa) you should already have an EID/ITIN for the business. It’s simple. I have accounts in both countries at multiple banks over the years (Centura, Key, RBC, WaMU, Wells Fargo) Both business and personal accounts.

There are two ATM networks, Plus and Cirrus. Look on the back of your card and use ATM’s that match your card. Again, pretty simple. I recommend you get a USD CC, swipe only, for use down there. Just easier than having the Pin card error out all the time.

Would we treat Americans This Way in Canada?
yes. we have the same money laundering laws as the US, so our requirements to open a bank account are pretty much the same. Ditto Europe. China is much harder :)

#81 theoryAndPractice on 09.19.18 at 12:01 am

#62 Karl on 09.18.18 at 9:18 pm

Attribution rules , Google it

https://ca.rbcwealthmanagement.com/documents/214796/0/Income+Splitting+and+the+attribution+rules.pdf/269e09e6-ce29-4a3a-a48d-204884dc789a

and ,

https://www.taxtips.ca/personaltax/lend-to-spouse-child.htm

and ,
https://www.advisor.ca/tax/tax-news/george-making-spousal-attribution-rules-work-for-you/

https://ca.rbcwealthmanagement.com/documents/707423/707439/Income+from+joint+accounts+held+between+spouses.pdf/556683ec-47cd-4633-95e4-e2a9cd8ef2aa

#82 HereYouGo on 09.19.18 at 12:05 am

https://translate.google.ca/translate?sl=auto&tl=en&js=y&prev=_t&hl=en&ie=UTF-8&u=http%3A%2F%2Fforum.yorkbbs.ca%2Fproperty%2F4795454.aspx&edit-text=&act=url

Things are about to unravel once the new builds are completed in the next year. Areas in Richmond Hill, Newmarket, Aurora are already seeing declines of 30-40%. Have you seen some listings for Townhomes at $900k-$1.1mm?. These are all new builds that are worth $650k-$750k at the current market valuation so something has to give.

#83 Stan Brooks on 09.19.18 at 12:22 am

#74 Ponzius Pilatus on 09.18.18 at 11:06 pm
#28 Never Trust Anyone Over 55 on 09.18.18 at 6:52 pm
So, I finally got the Vancouver house sold that I inherited from my mom who paid 33k for it.

2.1M coming my way.

So, my wife doesn’t work. Makes zero. I am going to put it all in her name.
—————
I just forwarded this to the CRA.
Get prepared for a knock on your door.

We better reform our tax system. It contradicts basic logic.

Business loans for investments between spouses with interest deductible?

Gifts between spouses limited and regulated for tax purposes?
Should she pay for that diamond engagement ring she got when engaged or married?
Or it is still considered your property for tax purposes when/if sold/returned to the jeweler?

Assets acquired during marriage, including inheritance considered as single ownership for tax purposes while considered jointly owned when divorced?

What if a second house is sold, paid off with only one person in the family contributing to the payments if the other does not work, are they both considered owners and is the capital gain split between them for tax purposes and why exactly that differs from other forms of investment? Should it not be distributed proportionally to income ‘invested’ and how the hell can that be tracked back?

Confusing and unjust (to be mild here) but I guess not the type of unjust as to attract the french villa guy.

Some of the most convoluted, non-legislated (not voted) tax rules (not even laws!) invented on demand to make the life of the average person much more difficult.

Authorities can invent any rule they want without it being voted anywhere, the problems is not in the laws but in the rules and interpretations. Stop that. Simplify the tax system and give people some room to breathe.

Just wondering who gave him the money for that french villa maintained in a foreign company for tax purposes, daddy or the rich wife?
Pathetic little man.

#84 Nonplused on 09.19.18 at 12:25 am

Uh oh, Syria just shot down a Russian plane with 14 souls on board because there were 4 Israeli F-16’s behind it lobbing missiles at targets in Syria. Russia is not happy because they think the Israelis used the Russian plane as a shield on purpose, which they probably did.

I don’t think Russia will respond, they seem to be in favor of de-escalation, but I think they’ll be staying well away from Israeli planes from now on to make sure the Syrians get a clear shot. Also it is unlikely the Russians will reveal their flight plans in advance anymore as they have been doing to avoid inadvertent airspace conflicts. If you can’t even send an unarmed reconnaissance plane on a regular flight without someone trying to sneak in behind it and drop a few cruise missiles then you are better off not to tell people when you are flying.

This has the potential to get out of hand quickly. Syria, Iran, Russia, Turkey, Hezbollah, Israel, ISIS, Al Quada, the Kurds, the US, and a number of other armed groups all have forces deployed in the region. Russia and the US have both moved large naval fleets to the region. Russia, the US, Syria, Israel and to some extent Turkey are all operation in the air. They all have conflicting objectives. Confusion runs high as do tensions. It won’t take much and there will be an F-18 on the ground or a destroyer on fire and then all hell is going to break loose.

So step 1 is to stock your pantries with whisky and spam before you worry about all this investing stuff.

The US, Russia, England, France, China, and Israel all have enough nukes to really mess things up.

#85 Shawn on 09.19.18 at 12:49 am

Average 401(k) balance by age
How much Americans have in their 401(k) plans as of the second quarter of 2018. Source: Fidelity

Age 20 to 29: $11,500
Age 30 to 39: $42,700
Age 40 to 49: $103,500
Age 50 to 59: $174,200
Age 60 to 69: $192,800

#86 NEVER GIVE UP on 09.19.18 at 12:54 am

I feel like I should say something positive in light of my previous comments.
At street level the people in LA are great, just as the people are virtually everywhere in the world that I have been and many will bend over backwards to help you.

#87 diharv on 09.19.18 at 1:29 am

If people are are going to fall all over themselves opening a pandoras box regarding who contributed what , what’s attributed to whom , let em . The CRA has bigger fish to fry.

#88 Smoking Man on 09.19.18 at 1:33 am

DELETED

#89 Money Coach on 09.19.18 at 2:43 am

#62 Karl on 09.18.18 at 9:18 pm

One reason that you might want to split up your TFSA funds equally into your account and your wife’s account is that tax laws could potentially change in the future. If TFSA’s somehow became taxable (unlikely but you never know) there may be some advantage in having roughly equal amounts to draw on.

The same logic applies to Spousal RRSP’s after age 65. After 65 you can split RRSP and RRIF income. You can’t split it before 65, so if you are planning on drawing from it before then, it pays to have some funds in each of your names. If you are planning on waiting until after 65 though, it currently makes no difference if you each hold 50/50 or all the funds are in one persons name. BUT you just never know. If in the future RRSP/RRIF income no longer qualifies for income splitting, you will wish you had RRSP/RRIFF income equally divided.

#90 Bdwy sktn on 09.19.18 at 2:49 am

Going up the hill on Quinpool from the Arm, (in Halifax)…
…..
Didn’t know this. Btw.The “halifax” is redundant for even many of us out here in bc!
…..
Shawn… But it would become 100% her money and why give her that control of your money for no benefit
……
Dude you married? It’s called ‘our’ money in a partnership.

Which goes to the point of gifting and attribution. The higher paid spouse can give every last penny of take home pay to the partner. It can go into a separate account in one name not joint. Perfectly legal so far. When the recieving spouse invests THAT money gains are attributed back to the high earning spouse. Or so it’s supposed to go. Tough to track down though. We just buy property/land/investments in my (stay home spouse) name only. By the time we need to sell the source will be forgotten for decades.

A strategic divorce may also be in the cards as one spouse holds mucho rrsps, the other none.
True income (and asset)splitting.

#91 BillyBob on 09.19.18 at 3:28 am

#64 NEVER GIVE UP on 09.18.18 at 9:48 pm
In Los Angeles now in the land of the Stockholm syndrome! This is not the land of the free these people are bound with Incredible regulation form-filling an officious paperwork, astonishing in my opinion. I went to pay a $65 Shipping Company bill at the Bank of America and as a foreigner they won’t take my debit card even in their ATM machine but Walmart will! Anyway I went to pay the $65 bill and the teller said we don’t accept cash! Only if you’re a bank account holder can I accept cash from you! But even more astonishing is the fact that they took a check from me from another bank. Why would they want a stupid check that I scribbled on a piece of paper that could easily be fake instead of cash? The reason is is that short of putting a chip in your arm they want to know everything about you what you did where you spend your money and they want to crush the freedom of cash out of the system it’s just the beginning.
Just try to get a bank account as a Canadian with proper business visas in this country! Not one American owned bank will accept you none of them! The only way you can get an account here as a business even though you have the right to be here and the right to do business is to use a bank that’s been bought out by a Canadian Bank. and that is not because they cannot open an account it’s because they don’t want to open an account because they all have Stockholm Syndrome from 9/11 and the ensuing incredible paperwork that the government keeps on them to track foreigners!
My assessment is that this is the least Free Nation on Earth! I still want to do business here and I’m following the rules but as a foreigner here I’m treated way differently and the roadblocks are immense! BTW when I tried to use their ATM machine it just kept saying transaction cancelled. I used several accounts all were transaction cancelled! I called my bank while I was standing in front of the ATM machine they said there is nothing wrong with my account. It’s just Bank of America won’t deal with foreigners! Would we treat Americans This Way in Canada?

==================================

Stop feeding Jim Brooks, he’s getting a hate-on.

Having taken up residence in the Middle East, Asia, and now Europe, I can assure you that being a Stranger in a Strange Land is pretty much the same all over the world. When you’re new somewhere it’s always varying degrees of difficulty to accomplish bureaucratic tasks. I assume you did some research before attempting to conduct business in the US and concluded that doing so is worth the hassle?

Be thankful that at least Americans (sort of) speak English.

#92 M on 09.19.18 at 3:45 am

Stats for Greater Vancouver from realtor Paul Boenisch

Sept 18 New 266 Sold 99 TI:13,418
Sept 17 New 360 Sold 93 TI:13,339

Sept 14 New 143 Sold 85 TI:13,239
Sept 13 New 225 Sold 58 TI:13,240
Sept 12 New 268 Sold 90 TI:13,147
Sept 11 New 325 Sold 77 TI:13,057
Sept 10 New 487 Sold 87 TI:12,916

Sept 7 New 197 Sold 87 TI:12,681
Sept 5-6 New 609 Sold 195 TI: 12,653
Sept 4 New 498 Sold 53 TI:12,439

Inventory at the end of August was 12,510

#93 Oft deleted much maligned stock picker on 09.19.18 at 5:00 am

More proof that Trudeau and other rogue government actors are being manipulated by ex officials in the Obama administration that they can “wait out” the Trump administration.

https://www.breitbart.com/national-security/2018/09/18/marco-rubio-demands-doj-investigate-john-kerrys-rogue-diplomacy-with-iran

Obviously Trudeau is not working for Canada but a conspiracy of malcontents who don’t give a damn about Canadian jobs. Trudeau is waiting for Obamas triumphant return….but can our businesses and workers be subjected to the whims of Trudeaus chief advisor….Democratic organizer David Axelrod?

#94 supermarche37 on 09.19.18 at 5:55 am

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#95 Steve French on 09.19.18 at 6:02 am

Smoking Man’s always going on about George Soros but the real billionaire elite who pulls the strings is Rupert Murdoch (owner of Fox Entertainment).

Murdoch recently decided to remove the elected Australian Prime Minister Malcolm Turnbull, and installed someone more to his liking.

https://www.theguardian.com/australia-news/2018/sep/19/turnbull-warned-rupert-murdoch-trying-remove-him-prime-minister

https://en.wikipedia.org/wiki/News_Corp

NewsCorp is where the real power behind the throne lies.

#96 Evangeline on 09.19.18 at 6:24 am

#94 Steve French on 09.19.18 at 6:02 am
“Smoking Man’s always going on about George Soros but the real billionaire elite who pulls the strings is Rupert Murdoch (owner of Fox Entertainment).”

That means that Jerry Hall is the real power. :-)

#97 Stan Brooks on 09.19.18 at 6:52 am

Interesting read.

Controversial commissions: DIY investors fight back against trailer fees

https://ca.finance.yahoo.com/news/controversial-commissions-diy-investors-fight-010000818.html

A Toronto man says his “head exploded” when he learned he’d lost more than $60,000 from his retirement nest egg by paying fees for financial advice he never got — and that his broker isn’t legally allowed to provide.

“Investors are getting screwed,” said Steve Pozgaj.

Pozgaj, 65, is one of a growing number of Canadians who are do-it-yourself investors, using online brokerages to purchase mutual funds and other investments, instead of through a financial adviser.

Paying sales fees for people who sell mutual funds as trailer fees on behalf of the financial institutions, and for financial advises you never got.

Fraud squared. Better learn investing yourself.

No, the lesson is: don’t buy mutual funds. – Garth

#98 theoryAndPractice on 09.19.18 at 7:09 am

Thirdly, …

Peg can even deduct the 2% interest paid from her taxable income. Sweet.- GT

———————–
(Just about %2 part) :

But Jason then has to declare %2 interest as income at his tax rate that is much higher.

Let’s say if Peg deduct 2% , paying $1000 interest back to Jason at her tax bracket she would save at ( 30 % tax bracket )= $300 but then Jason (at 50% tax bracket) must pay $500 income tax on that %2 ? Is not it so ? They then basically lost $200 during the process on paper.

Would not it be better to give interest free loan to lower tax bracket ? Is it the reason CRA pushes prescribed rate ?

Without the loan structure the investment gains would be attributable to the person who provided the funds. You are focusing on minimal interest and ignoring the point of the exercise. – Garth

#99 theoryAndPractice on 09.19.18 at 7:41 am

Without the loan structure the investment gains would be attributable to the person who provided the funds. You are focusing on minimal interest and ignoring the point of the exercise. – Garth

Thanks for the answer, I agree and understand the overall gain from the move is * way * higher,

I was just looking what exactly happens to the other side of the equation.

#100 Tater on 09.19.18 at 7:58 am

#14 yorkville renter on 09.18.18 at 5:23 pm
any good realtor would have provided the data in question… just saying.
—————————————————————-

What percentage of people in any industry would you consider good at their jobs? ……just saying

#101 Mogulrider on 09.19.18 at 8:07 am

As a Nova Scotian I have a great of experience with the outcome if publishing private data on real eatate. Viewpoint.com which publishes sales data on all properties gives all your personal property details.

The downside if publshing data is the negative effect it has on property people own. Neighbors, trolls etc scour sales data to harass people who bought property near them.

As you will find out. Your neighbors will comment constantly about your purchase at local parties etc.

I’ve had people come in my property complaining and telling me what I paid for my land. I also have had people tell me what property I own. All this data is available to view if you want to pay for it.

It is seedy and unconstutional in my opinion. Just wait you will find out.

#102 Mogulrider on 09.19.18 at 8:10 am

Btw giving investment advice without a license is illegal isn’t it?
People want to be careful here

#103 Howard on 09.19.18 at 8:11 am

New allegation against T2 : http://warrenkinsella.com/2018/09/save-your-pretty-words/

Maybe start a pool as to how many people eventually come forward against him?

#104 Howard on 09.19.18 at 8:18 am

My bad, it seems that was one of Kent Hehr’s conquests.

#105 theoryAndPractice on 09.19.18 at 8:25 am

#96 Stan Brooks on 09.19.18 at 6:52 am

Thanks for the post, one more time it proves that Canadians are seen as herds. Wherever you turn, there is legalized theft, real estate ,financial institutions and notable giant corporations and so on.

I recall giant communication companies was charging $2 not to publish subscriber names in 411 directory in monthly bills without even mentioning at subscription time. Not sure, if they still do so.

#106 Peter on 09.19.18 at 8:27 am

Garth, if the Supreme Court has ordered that TREB is required to provide buyers/sellers detailed real estate data, does that mean other real estate boards across Canada will also be required to do the same? Thanks for your posts over many years.

No it does not. But the writing is on the wall. They will all comply in time. – Garth

#107 crowdedelevatorfartz on 09.19.18 at 8:40 am

@#100 Mogulrider

Viewpoint is bad?
Unbiased, easily accessable information is a violation of privacy ?
You have friends and neighbors harrassing you over your purchases?
Are you a realtor?
Or do you just need a gate to keep out the riffraff and new friends?

#108 Stone on 09.19.18 at 8:47 am

Interesting. From 60 Minutes Australia.

https://m.youtube.com/watch?v=smPR0s2W-Ck

https://m.youtube.com/watch?v=BbFvwYVfwq0

https://m.youtube.com/watch?v=T3ZrjqCQRog

How far away is Canada to this versus Australia?

#109 KLNR on 09.19.18 at 8:50 am

haha

https://www.thebeaverton.com/2018/09/doug-ford-invokes-war-measures-act-to-remove-toronto-bike-lanes/

#110 Gravy Train on 09.19.18 at 9:00 am

#3 big oil still pays my bills on 09.18.18 at 4:50 pm

If it appears too good to be true it probably is…

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/contributing-a-rrsp-prpp/contributing-your-spouse-s-common-law-partner-s-rrsps.html

If you contributed amounts to your spouse’s or common-law partner’s RRSP in 2015, 2016, or 2017, you may have to include in your 2017 income all or part of the amount your spouse or common-law partner withdrew in 2017 from his or her spousal or common-law partner RRSP.

Of course. Funds must remain the property of your spouse for three years. That has always been the case. – Garth

#111 Gravy Train on 09.19.18 at 9:00 am

#93 supermarche37 on 09.19.18 at 5:55 am
“I am always trying to find informative information.[…]” Me, too! (As well as instructive instructions.) :)

#112 fleeced on 09.19.18 at 9:03 am

#28 Never Trust Anyone Over 55 on 09.18.18 at 6:52 pm

Based on your username I hope she is not over 55

#113 dharma bum on 09.19.18 at 9:23 am

#100 Mogulrider

It is seedy and unconstitutional in my opinion.
——————————————————————–

It’s also kind of a Maritimers’ attitude thing. Y’know, always minding everybody else’s business.

#114 Gravy Train on 09.19.18 at 9:37 am

This is a tough hurricane, one of the wettest we’ve ever seen from the standpoint of water. — Donald Trump

Can anyone top this line? Smokey? :)

#115 Lee on 09.19.18 at 9:59 am

#84 Shawn,

I believe those are the numbers for people who actually have 401Ks. Such people on average are regularly employed in decent jobs.

#116 Bdwy sktrn on 09.19.18 at 10:00 am

Teeny tiny Tilray. Sales 20million. Market cap 21 billion

Makes nortel look pretty good.

#117 Smoking Man on 09.19.18 at 10:03 am

The last hold out of self censership by the silent majority is on fire , its red and its pissed. Linked In goes political.

Red wave at the mid terms. Sorry Frenchy. Looks like Merdoc is winning.

Dr Smoking Man
Phd Hetdonomics.

#118 Gravy Train on 09.19.18 at 10:22 am

#109 Gravy Train on 09.19.18 at 9:00 am
Wow! Thief! You purloined my moniker! Couldn’t you come up with an original handle? If you insist on using my nom de plume, I guess I’ll have to use a different one: How about the pseudonym ‘Eric Blair’ or maybe ‘Sugar Daddy’? I suppose I should be flattered by your imitation. :)

#119 maxx on 09.19.18 at 10:39 am

@#7

Learning to cook, meal planning and avoiding processed food will wipe the smarmy smiles off of food industry CEOs faces right quick.

Plus, it’ll promote robust health, something most processed food doesn’t deliver.

#120 NEVER GIVE UP on 09.19.18 at 11:00 am

79 -=jwk=- on 09.18.18 at 11:54 pm
yeah my ATM card has the plus symbol and the plus symbol is proudly displayed on Bank of America’s ATM machine. So I can’t think of any other reason why they refuse to accept my card even though my bank TD said everything is fine.
With regard to bank accounts in the US perhaps you got your accounts in Better Days. Sadly I have directly contacted many US Banks and would not even entertain me for a business account. They flat-out stated they do not open business accounts for foreigners under any circumstances. Chase , Wells Fargo, several others we called their offices and got the same response.
I file US taxes as a Canadian Corporation and have an EIN number. Also have an E-1 business Visa. Everything is in order but the new truth is they just don’t want to do business with foreigners.

#121 Smoking Man on 09.19.18 at 11:05 am

#117 Gravy Train on 09.19.18 at 10:22 am

#109 Gravy Train on 09.19.18 at 9:00 am
Wow! Thief! You purloined my moniker! Couldn’t you come up with an original handle? If you insist on using my nom de plume, I guess I’ll have to use a different one: How about the pseudonym ‘Eric Blair’ or maybe ‘Sugar Daddy’? I suppose I should be flattered by your imitation. :)
….

Happens to me all the time, suck it up snowflake..

#122 Braj on 09.19.18 at 11:35 am

#100 Mogulrider on 09.19.18 at 8:07 am
As a Nova Scotian I have a great of experience with the outcome if publishing private data on real eatate. Viewpoint.com which publishes sales data on all properties gives all your personal property details.

The downside if publshing data is the negative effect it has on property people own. Neighbors, trolls etc scour sales data to harass people who bought property near them.

As you will find out. Your neighbors will comment constantly about your purchase at local parties etc.

I’ve had people come in my property complaining and telling me what I paid for my land. I also have had people tell me what property I own. All this data is available to view if you want to pay for it.

It is seedy and unconstutional in my opinion. Just wait you will find out.

***

Get over it, land ownership and taxes paid should be public record. Estonia is way ahead in this regard.

#123 Braj on 09.19.18 at 11:42 am

#83 Nonplused on 09.19.18 at 12:25 am
Uh oh, Syria just shot down a Russian plane with 14 souls on board because there were 4 Israeli F-16’s behind it lobbing missiles at targets in Syria. Russia is not happy because they think the Israelis used the Russian plane as a shield on purpose, which they probably did.

I don’t think Russia will respond, they seem to be in favor of de-escalation, but I think they’ll be staying well away from Israeli planes from now on to make sure the Syrians get a clear shot. Also it is unlikely the Russians will reveal their flight plans in advance anymore as they have been doing to avoid inadvertent airspace conflicts. If you can’t even send an unarmed reconnaissance plane on a regular flight without someone trying to sneak in behind it and drop a few cruise missiles then you are better off not to tell people when you are flying.

This has the potential to get out of hand quickly. Syria, Iran, Russia, Turkey, Hezbollah, Israel, ISIS, Al Quada, the Kurds, the US, and a number of other armed groups all have forces deployed in the region. Russia and the US have both moved large naval fleets to the region. Russia, the US, Syria, Israel and to some extent Turkey are all operation in the air. They all have conflicting objectives. Confusion runs high as do tensions. It won’t take much and there will be an F-18 on the ground or a destroyer on fire and then all hell is going to break loose.

So step 1 is to stock your pantries with whisky and spam before you worry about all this investing stuff.

The US, Russia, England, France, China, and Israel all have enough nukes to really mess things up

***

Doomsday talk, war is $ maker. Blowing up the planet does not assist with that, and if that is the direction we are headed then you don’t have much to worry about.

#124 Gravy Train on 09.19.18 at 11:55 am

#120 Smoking Man on 09.19.18 at 11:05 am
“Happens to me all the time, suck it up snowflake..” Who’d want to imitate you, Smokey? You’re a derelict! :)

#125 BCPaul on 09.19.18 at 12:16 pm

#14 yorkville renter on 09.18.18 at 5:23 pm
any good realtor would have provided the data in question… just saying.

Yes, but what is the percentage of buyers that know this? I would guess very few.

Information is power!

Most realtors I know are worse then used car salesmen when it comes to informing potential buyers.

#126 ts on 09.19.18 at 12:19 pm

@#118

Agree 100%. Also, if time permits, having a vegetable garden also helps. There’s nothing like eating a home-grown tomato, green beans, cucumber (which are super easy to grow) without pesticides, GMO’s, etc.

#127 Mattl on 09.19.18 at 12:31 pm

Hardly. Married people co-mingle their money constantly. In fact, they should. This is matrimonial property and they are an economic unit. – Garth

Or as my wife would say, whats mine is mine and whats yours is mine.

Great post BTW

#128 RyYYZ on 09.19.18 at 12:53 pm

I came to realize just how badly our high marginal rates bite this year, when I was “laid off” from my employer of 18 years. I got 57 weeks of severance pay, in a lump sum. All of it just gets added to my income for the year.

No recognition of the fact that it’s a payout for 18 years of service, no way to defer any of it. RRSP already mostly maxed out, so no help there. On the good side I found another job (at somewhat less money – happy to have it in the IT field at age 51) already. On the downside, everything I make for the rest of this year the gov’t will get at least half of. I’ll have to write the gov’t a big cheque at the end of the year.

Working hard and earning money above the board is not rewarded in this country, but punished. Meanwhile, our political and economic masters aren’t bothered by this, because they make their money sitting on their asses collecting capital gains and dividends from money they inherited, and getting taxed at half the rate on it.

I still think cracking down on bogus income-splitting schemes was correct. If taxes on self-employed professionals and small business owners are too high (as they are), the correct solution is not to allow them to fraudulently evade it by claiming spouses and children as employees (when they really aren’t).

Unfortunately, most of the people in this country are envious of “the rich” and have no understanding of how this punitive level of tax on the productive hurts our economy.

I already knew and believed this, but actually getting hit with the 50+ % marginal rate on ~$100k of earnings really brought it home.

#129 Wrk.dover on 09.19.18 at 12:58 pm

#100 Mogulrider on 09.19.18 at 8:07 am

As you will find out. Your neighbors will comment constantly about your purchase at local parties etc

____________________

Maybe you set a new record for pretentious overpayment?

We also know what your Audi cost, but don’t care about your wife’s Kia.

If you check out my assessment, you will appeal yours.

#130 GW on 09.19.18 at 1:49 pm

FUCK OFF you prick entitled GOVT WORKER…..

Gravy Train on 09.19.18 at 9:37 am
This is a tough hurricane, one of the wettest we’ve ever seen from the standpoint of water. — Donald Trump

Can anyone top this line? Smokey? :)

#131 Gravy Train on 09.19.18 at 1:53 pm

#118 maxx on 09.19.18 at 10:39 am
“Learning to cook, meal planning and avoiding processed food will wipe the smarmy smiles off of food industry CEOs faces right quick.

“Plus, it’ll promote robust health, something most processed food doesn’t deliver.”

#125 ts on 09.19.18 at 12:19 pm
“Agree 100%. Also, if time permits, having a vegetable garden also helps. There’s nothing like eating a home-grown tomato, green beans, cucumber (which are super easy to grow) without pesticides, GMO’s, etc.”

We’ve got a backyard garden along with a peach tree and a block garden in the front yard, so we have peaches, strawberries and blueberries for breakfast; butter lettuce, cucumbers, and tomatoes for salads; and beets, carrots and green beans for supper—at least until winter approaches.

Sorry, Garth. I’ve been a bit too talkative today! :)

#132 jess on 09.19.18 at 1:55 pm

..”Be thankful that at least Americans (sort of) speak English.”
=============
associative memories disconnect?
….”Judge went on to a career writing for the Daily Caller, American Spectator and other right-wing outlets. In his writings, he has compared marriage equality to incest; said gay people are “perverts” who caused AIDS; cited without evidence the “very high odds” his bike was stolen by a black man; called Barack Obama “the first female president” and “a clearly unqualified…poster child for affirmative action”; praised “the wonderful beauty of uncontrollable male passion; wondered where all the “manly” journalists have gone; often attacked the liberal press, including a Mother Jones reporter he dismissed as “pro-abortion”; and frequently questioned high-profile accounts of rape and sexual assault, suggesting that women’s clothing choices can entirely understandably lead to rape.

“Of course there is never any excuse to rape someone,” he wrote in one post complaining about feminism. “But it’s possible to have two seemingly contradictory thoughts to be both equally true…If a woman at her computer in Starbucks (is) sending out several signals simply by the way she is sitting, then women who dress like prostitutes are also sending out signals (by) using your body for cheap theatrics.” How unfair, he whines, that any straight white man calling them out is deemed “a shaming patriarchal frat boy jerk.” From his mouth…In the wake of the Kavanaugh furor, Judge recently deleted much of his social media content, including a soft porn YouTube channel featuring sexual videos of young women. They’ve now resurfaced, because the Internet is forever. So, ultimately, is character or the lack therein, which is why all this matters, even from way back when, as we mull the next lifetime Supreme Court justice.”…https://www.commondreams.org/further/2018/09/17/company-he-keeps-kavanaugh-bro-mark-judge-scummy-piece-work

#133 INKS on 09.19.18 at 2:06 pm

I found one website that works with a free account: http://www.mongohouse.com. Sold prices go back 720 days if you are logged in.

#134 Gravy Train on 09.19.18 at 2:21 pm

It has always seemed strange to me.… The things we admire in men, kindness and generosity, openness, honesty, understanding and feeling, are the concomitants of failure in our system. And those traits we detest, sharpness, greed, acquisitiveness, meanness, egotism and self-interest, are the traits of success. And while men admire the quality of the first they love the produce of the second.
— John Steinbeck, Cannery Row

#135 Bdwy sktn on 09.19.18 at 2:55 pm

Tilray mkt cap up over 10billion today
Combined industry Mkt cap got to be pushing 100b.
Total legal market in Canada may hit 3b in a few years.

This makes bitcoin 20k look smart. Nothing like this ever in history. With money this dumb van bungs hit 10m some day.

#136 YVRMan on 09.19.18 at 3:26 pm

Released information on history of houses?
Time to find out how much the Jones’ spent on their new house.
or
How much the Jones’ profitted from their sale at peak.

#137 Linda on 09.19.18 at 3:38 pm

‘Jim’ – all too true about how many Americans are driven to bankruptcy if they or a family member has a serious illness. Add in the fact that declaring bankruptcy DOES NOT wipe out any medical/hospital related debt. The law was amended a number of years ago (under the Bush administration as I recall) to prevent people from being able to wipe out that type of debt by declaring bankruptcy. You might be broke, but you are still liable for any hospital or medical debt you incurred.

#138 bdwy sktrn on 09.19.18 at 3:42 pm

1826 GRANT STREET ask $2,389 close$2,400k dom 8

https://www.google.ca/maps/place/1826+Grant+St,+Vancouver,+BC+V5L+2Y8/@49.2712781,-123.0670436,3a,75y,177.24h,90t/data=!3m6!1e1!3m4!1sfNsF5iJTwH6RDYWdra_j8Q!2e0!7i13312!8i6656!4m5!3m4!1s0x54867138c0dbfc0b:0x8b34ae704db1a946!8m2!3d49.2710026!4d-123.0670233

WOWSA!

over ask, record high, sold instantly WTF is this 2016 again (or 2013 for mark)

sure it’s a huge 36′ lot, rather than the standard 33′, but …wow. a nice heritage restoration, garth did you do this?

fyi it faces on the bocce ball (small)park used daily by old italians , kiddies in play area, countless canines, mexican paper bag drinking parties, plenty of 420, homeless campers (often) , a few skids whom are regulars, hippie slackline walkers and more.

i guess some big money buyers want a much more diverse crowd than the 50/50 mix of oldrichwhite/newsuperrichasian as inhabits the west side;)

‘regular’ places still slower and just under ask. inventory still slow to grow.

urban core here that refuses to melt.

#139 bdwy sktrn on 09.19.18 at 3:46 pm

546 E 20TH AVENUE$2,288 sell$2,300
heres one closer to flop’s hood.

over ask. DOM says zero. sold 2 weeks ago.

not bad for a 50 footer.

#140 Linda on 09.19.18 at 4:02 pm

Further to the medical bankruptcy issue, I did a Google search. The bankruptcy laws were amended under President Bush in 2005. Previously all unsecured debt including medical & credit card debt were wiped out when bankruptcy was declared. Under the new law, those whose income is above a certain amount are still liable for a portion of the costs for medical or credit card related debt & must pay back a court determined portion of the amount owed during the bankruptcy process. Some people may be able to escape payment if their income is deemed to fall below a low income threshold but rest assured the creditors will do everything they can to prove the person declaring bankruptcy does not qualify for that kind of debt relief.

#141 oncebittwiceshy on 09.19.18 at 4:36 pm

bdwy sktrn: “over ask, record high, sold instantly WTF is this 2016 again (or 2013 for mark)”

<<<<<<<<<<<<<<<<<<

Lololololol even the RE agents don't believe that.

http://vancitycondoguide.com/bc-housing-sales-slide-in-august/

"The residential property market in the province of BC continued its downwards momentum in August. Following fewer sales and rising inventory, there appears to be little sign of resurrecting a market bogged down by tighter lending conditions and a swath of government tax policies."

http://www.myvancouverproperty.ca/houses-for-sale-in-vancouver-under-1000000

"Houses for sale in Vancouver <$1,000,000"

#142 Jim Brooks on 09.19.18 at 4:37 pm

#137 bdwy sktrn

“sure it’s a huge 36′ lot, rather than the standard 33′, but …wow. a nice heritage restoration, garth did you do this?”

A huge 36′ ft lot…. Are they splitting these in two for 2 18′ ft lots?

#143 Jim Brooks on 09.19.18 at 4:44 pm

#130 Gravy Train

“We’ve got a backyard garden along with a peach tree and a block garden in the front yard, so we have peaches, strawberries and blueberries for breakfast; butter lettuce, cucumbers, and tomatoes for salads; and beets, carrots and green beans for supper—at least until winter approaches.”

When can I come over for dinner? Good for you! We have a pear, apple and cherry tree. I froze over 60 pounds of cherries this summer. In the veggie garden we have peppers, tomatoes, cucumbers, strawberries and the hardiest and most productive plant of them all, kale. It keeps going from May until late October. Unbelievable amount of kale from a dozen plants. We keep harvesting and it keeps producing. A real wonder plant and so good for you…

#144 oncebittwiceshy on 09.19.18 at 4:44 pm

546 E 20TH AVENUE$2,288 sell$2,300

<<<<<<<<<<<

Yawn … listed $200,000 under assessed and sold for $100,000 under assessed

Market is on fire if you want to unload for under assessed value …. oh, and a lot more will. lol

#145 Jim Brooks on 09.19.18 at 4:53 pm

#136 Linda

It is pathetic that a country that can spend trillions on its military, cannot provide universal health care for its citizens. I had an immediate family member that was treated at Princess Margaret for cancer and it was world class treatment that went very well. This family member was in contact with dozens of people in the USA via social media that were undergoing the same type of cancer and they A. couldn’t believe we incurred no cost for 6 months of treatment and 5 years of follow up visits B.were all very indebted for their treatments, even those who had insurance had to lay out 1000s of dollars for treatment as it was not totally covered…

#146 Gravy Train on 09.19.18 at 5:22 pm

#129 GW on 09.19.18 at 1:49 pm
“[Expletive deleted] you [expletive deleted] entitled GOVT WORKER…..”

For the record I’m a former (retired) accountant—with a very nice investment portfolio.

Oh—and I thought you might enjoy the following quote:
“It’s tremendously big and tremendously wet….”
— Donald Trump describing Hurricane Florence

#147 crowdedelevatorfartz on 09.19.18 at 5:33 pm

@#137 Broadway Skytrain

Ahhh yes the Victoria St Grant St park where bocci ball arguements are settled with knives and guns …………

#148 Jay on 09.20.18 at 8:21 am

Don’t you have to pay a withholding tax when taking money out of an RRSP? If i contribute to a spousal plan, wife isn’t working, can she withdraw tax free?

Of course not. But she might get it all back after filing. – Garth

#149 Ana on 09.20.18 at 11:19 am

Where’s flop been? I read the blog everyday …the comments many days and haven’t seen flop lately. I enjoy his posts even though I don’t live in bC.

#150 bob on 09.20.18 at 11:56 am

Income tax is usually deducted from payroll
but if you have tax owing
can a spouse pay this tax owing?… i.e. can we treat this tax arrears, or tax installment, or tax owing like we do a regular household expense?

#151 Newguy on 09.20.18 at 4:03 pm

@ #83 Stan Brooks on 09.19.18 at 12:22 am

There is a very good reason why so many loopholes favor married couples that singles will never get. Are you ready for the answer? Here goes:

It is because most federal politicians are married.

Follow the money