GREY:ROAOF - Post by User
Comment by
Kel2on Aug 23, 2004 7:04pm
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Post# 7842007
RE: Tax Question (average up?)
RE: Tax Question (average up?)Let's put another perspective on RSP trading. The object of your purchases, whether in an RSP account or a cash/margin account is to make money.
If one makes money in his cash account there is a tax liability in that tax hear, albeit capital gains. If you make money in your RSP the tax liablility is still there but it is deferred for as long as you like up until the age of 69.
Should you make money and, unlike the Ice Man, choose not to spend it, and should it be in your RSP, there are no immediate taxes to pay allowing you to use 100% of the gain to make more money. If the gain has come in your cash account that option is not availiable.
If you do make the money in your RSP and you do find, like ICE, that you need a new car, then you can simply deregister whatever it is you need. Some money will be with held for tax purposes.
If you get on a roll in your RSP your wealth will multiply dramatically.