RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:!!!!!!!!!!!,,,,A SLICK Video........From TruDOPE !!!!!!!!!!Hey QUINT__INDEED I OverLooked the TAXES to BE Paid on the BCE Dividends
And BCE Will NOT DOUBLE in the Next 20 YEARS__And the Future VALUE of
the Cottage REMAINS to BE SEEN eh !
BUT So What eh__As THIS Does NOT CHANGE the BCE Dividend Payouts.
My Numbers__EVEN With a CORRECTION to Tax the Dividends__WILL REMAIN
Quite COMPELLING__UNLESS BCE Does CUT the Dividend by a SUBSTANTIAL
Amount
And Virtually 100% that BCE Share Price WILL INCREASE from Current Price eh !
The BOTTEM Line IS that the LONGER One EXPECTS to LIVE__The MORE
COMPELLING Becomes the DO NOT PAY the Capital Gains on the Cottage
and INSTEAD Invest those $$$$$ in BCE Dividends.
IF One EXPECTS to LIVE Not that Many More YEARS__Then the PAY the
TAX on the Cottage According to Your Strategy__Likely WOULD BE BEST
Likely SOMEWHERE Betwee 5 to 10 Years WOULD BE the Break EVEN
Point Between these 2 Strategies?
Quintessential1 wrote: Yeah, tax free red? LOL
Yes red cash paid in taxes today are taxes that do not have to be paid tomorrow.
So while I lament the loss of 44k to the government today I do not forget about the taxes paid on the realestate investment today and I don't really shed a tear for me or the poor kids and their million dollar cottage that will double in value again in a scant 10 years time. Pssst ...will BCE?
Just some notes: The gain is a gain and doesn't include the initial investment already paid with tax paid dollars. 20 years? Living forever are we? I thought this was end of life tax planning?
GLTY and all.
Red_Deer wrote: Hey QUINT__Just ran some numbers into my own Excel Tax Calculator SpreadSheet
which a created over several decades ago__Your 15% IS in the Ball Park.
Here in BC__Say WITH a Modest $35,000 of Other Income__The 250K Capital Gain
results in a Total Tax of
$44,402.58__Which is
17.76% on the 250K Gain
So like You Posted__Quite DOABLE Between YOU and the KIDS eh ?
BUT Would PAYING the TAX NOW Actually BE a GOOD CHOICE?
Do you Remember in your High School Physics examining FORCE__The Classic
""
For Every ACTION There WILL BE a REACTION""
Question then Would BE__IF you
TAKE the ACTION and PAY the $44,402.58 TAX
Then
WHAT Would BE the REACTION? The REACTION Would BE That
You WOULD Lose FOREVER the $44,402.58
by Giving IT to TruDope et al NOW__And This COULD REALLY HURT a LOT
The
OPPORTUNITY COST of THIS Could Be HORRENDOUS__INSTEAD of
Giving Away those $$ to TruDope__INSTEAD You Could INVEST IT in
Shares of BCE for Example.
With a YIELD @ 8.5%__
Coupled With the POWER of COMPOUNDING__The
Results COULD BE Spectacular !!!
A $44,402.58 Investment in BCE__With a 8.5% Dividend Yield__
In 20 YEARS
Would BECOME $226,988.08__ADDING on
Another 10 YEARS Would Result
in a Whopping $513,216.28 !!!__Of Course BOTH Could BE Different Depending
on What BCE Share Price Does.
And KEEP in MIND That You
WOULD BE Doing This FOUR TIMES__To COVER
a $1 MILLION Valued Cottage.
So to PAY the TAX NOW?__To SAVE the Future ESTATE TAXES__Or NOT
PAY?__And Instead INVEST in BCE?
I KNOW What I WOULD Choose__What about You QUINT ??
Quintessential1 wrote: Have the kids pay the 50% capital gains?
I wasn't even going to have them pay for the quarter I was selling them.
Did you forget what we were trying to do here?
Its called F the taxman not the kids.
Now if I don't have the 50% to pay the taxman I am sure they would happily pony up 15% on the dollar.
GLTY and all.
Red_Deer wrote: Hey QUINT__This ACTUALLY Could Work__BUT I Would ASK the KIDS to PAY the
Capital Gains Taxes @ the 50% Rate__Do YOU THINK They WOULD eh ????
So gift the kids a share say one quarter per year and keep the gain under 250k.
When and how do you think the CRA knows you changed your principal residence in
order to assess that gain? You're both just guessing and you really don't know.
CRA WILL BE Watching OUT For This__The ELECTION FORM That CRA ReQuires WILL
Keep a LID on ANY SHENANIGANS of TAX AVOIDANCE