Thursday, February 15, 2001

Winnipeg Free Press

Location: Winnipeg, Manitoba

Page: 74

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Winnipeg Free Press (Newspaper) - February 15, 2001, Winnipeg, Manitoba 4 The Jewish Post ft News Financial Guide 2001 Investment Strategies in Todays Low Interest Rate Environment Joel investment would like to invite you to join him for dinner at Baileys Restaurant on March Joel will be hosting a seminar focusing on investing in todays low interest rate Topics of discussion will include RRSP Strategies Mutual Fund Investing Tax Sheltered Investments Time PM Date March 2001 Location Baileys Restaurant Limited Seating Still Available To Reserve Your Complimentary call Joel Cogan Investment Comm FCSI BMO Nesbitt Burns Private Client Division We Wrote The Book On Personal Tax Planning When it comes to minimizing income CGA wrote Back by popular the Personal Tax Planning booklet is free for the ask brought to you as a public service by the Certified General Accountants Association of Personal Tax Planning can help you 1 minimize your personal taxes currently payable 2 estab lish an ongoing process by which you can review and revise your tax plan as personal circum stances or relevant legislation and 3 better appreciate the complex federal and provincial rules that govern tax including current reform The booklet outlines employment income and income and expenses from a business or self investment income and capital gains Income tax shel ter deferred income personal tax and To pick up your complimentary visit the Winnipeg Centennial Library or the CGA office Number Four Donald Street Manitoba R3L 2T7 Tel 4771256 18002828001 Dont overtax your finances SOP Here are sbitfe tips to ensure that your RRSP contributions ddht overtax your finances Set up an automatic withdrawal plan with a financial institution so you re contribut ing an affordable amount to ydur RRSP each Factor it in as an expense to pay self as part of your budget That way you wont be scraping to find money in RRSP If youre facing a cashflow crunch to come up with monthly RRSR consider talking to Revenue Canada and your employer fcrreduce the deducted from your paycheque sd that it fits fits With your RRSP Consider talking arj adviser or banker about how to reduce mortgage payments to tocontribitte tpyour RJISP investors Who Will gain from com pounding of their RRSP and have maritime to pay off a butions missed in previous yearijof dont have the funds at the ertd of the year an dptlorj is an RRSP banks offerspecial loan But of taking on a loan thats unmanageable or makes it too difficult to set up a monthly contribution Slock Options Benefits By SAULTARGOWNIK CM CCA Gislason Targownlk Peters Certified General Accountants The 2000 federal budget pro posed changes to the rules withrespect to qualifying employee stock options of publicly listed shares exercised after February The new provision post pones the taxation of the potential gain on stock options until such time as the shares are rather than when the option was This provision is subject to a annual vesting Prior to February 2000 the tax treatment of stock options related to the date the option was At this date the excess of the stocks fair market value at the date ac over the options exercise price was taxed as employment in and this same amount was added to the costbase of the Canada Customs and Revenue Agency has developed certain ex ceptions from the above tax treat A deduction of 25 of the benefit is allowed against taxable income if the following conditions existed The option was granted after Feb ruary The option price was not less than the Fair Market Value at the time the option was granted The employee dealtatarms length with the corporation and The at the time of was a prescribed share as defined bv J The benefit is included in income during theyear of share instead of when provided the following conditions existed The corporation was a Canadian controlled private corporation The option was granted after March 1977 The shares were acquired after May and the employee dealt at arms length with the The 25 deduction from taxable income applied if the shares were not disposed of for two years after unless the transaction arose as a consequence of No taxable benefit or 25 de duction applies for shares acquired before May provided the following conditions existed The corporation was a Canadian controlled private corporation The option was granted after March 1977 The employee dealt at arms length with the corporation arid The shares were held for a mini mum of two years before disposi For the 2000 taxation year the 25 deduction from taxable income mentioned in the above exceptions is adjusted as follows For the period February 2000 to October 2000 the deduction is 33 For the period October 2000 to December 2000 the deduc tion is Due to the complicity of the treat ment of stock it would be prudent to seek professional advice prior to your exercising any stock