My accountant/financial planner tried to sell my wife and I flow-through tax shelters (as well as labour-sponsored funds and other magical things). We like to pick our own securities and he wasn't able to convey any other benefit to us.
My accountant/financial planner tried to sell my wife and I flow-through tax shelters (as well as labour-sponsored funds and other magical things). We like to pick our own securities and he wasn't able to convey any other benefit to us.Anyone here had experience with resource limited partnership or "flow-through" tax shelters? As far I know, the Canada Revenue Agency is completely fine with these -- they "work" if you're prepared to lose capital in the underlying investment in order to reap some tax advantages: usually deferring tax liability to another year. Of course, in the best scenario, the underlying investment goes up and you win twice.
In a different category are those "buy-low, sell-high" charitable giving tax shelters, which the CRA is aggressively trying to discourage by auditing anyone who has tried them.
I realize these tax shelters proliferate at the end of the calendar year and won't "help" anyone defray taxes due at the end of this month. But seems to me a new crop of flow-throughs will be hitting soon, some of which will sell out by the time the end-of-year rush hits.
Today we gather to bid adieu to the flow-through share, one of the best investment traps of the last bull market.
For those who aren't familiar with the concept, the shares are a brilliant way to roll the dice on a junior resource company and get paid to do it. Well, that's the seller's pitch anyway. A better description, in retrospect at least, would be that it's an unparalleled way to lose money.
I've recently had a guest writer talk about how he maximizes his charitable donations by using flow through tax shelters.Anyone here had experience with resource limited partnership or "flow-through" tax shelters? As far I know, the Canada Revenue Agency is completely fine with these -- they "work" if you're prepared to lose capital in the underlying investment in order to reap some tax advantages: usually deferring tax liability to another year. Of course, in the best scenario, the underlying investment goes up and you win twice.
In a different category are those "buy-low, sell-high" charitable giving tax shelters, which the CRA is aggressively trying to discourage by auditing anyone who has tried them.
I realize these tax shelters proliferate at the end of the calendar year and won't "help" anyone defray taxes due at the end of this month. But seems to me a new crop of flow-throughs will be hitting soon, some of which will sell out by the time the end-of-year rush hits.
I have been doing super flow throughs (SFT) for many years - love them, CRA has zero issuesAnyone here had experience with resource limited partnership or "flow-through" tax shelters? .
covers the basics - niceHere's a column this weekend that touches on this topic:
http://www.financialpost.com/story.html?id=1532341
in Ontario & for me LSIF's were not a good dealI worked briefly for a company that manages a bunch of LSIFs. I'm not sure whether they make a great tax planning investment or not. .
I would agree & also say LSIF's are a totally different tax deferred vehicle to Flow Through shares (FTS)I wouldn't say that LSIFs are bad investments, but the the managers and salespeople seem to get a sizable chunk of the pie.