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Discussion Starter #1
One of my client's average tax for last year was 44%. His annual income for 2020 is not expected to be more than $30,000 because he lost his job. He is also planning to buy a home in 2022.

Question - 1. Should he max out his rrsp contribution for 2020 to reduce tax? He is thinking to withdraw that money under first time home buyer plan.

2. If he doesn't invest in RRSP for 2020, what will his average rate of tax be for 2020?

Thanks in advance!
 

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Q1 He could put the $ in the RRSP if he needs it for a home and is going to w draw it.

Q2 The marginal tax rate for that income in ON is 20%. His actual tax rate will be more like 10-15% though w all the deductions ( personal , spouse etc)
 

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Discussion Starter #3
Q1 He could put the $ in the RRSP if he needs it for a home and is going to w draw it.

Q2 The marginal tax rate for that income in ON is 20%. His actual tax rate will be more like 10-15% though w all the deductions ( personal , spouse etc)
Thanks for the response Jimmy
 

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^ I have 2 questions too:

1. Are you paid for getting the answers to your client?
2. Why can't you look up the average tax rate when your client has a decision for you on your first question.

I don't understand why everyone out here is concerned if I am getting paid or not. That should be of no concern to anyone because I am not going to pay to you for your response anyway !!

Also, It should not matter if I can lookup or cannot lookup. If you have the answer you can respond. I do not need business advice from anyone
 

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Thanks for the response Jimmy
Thanks Khyati. Another idea too. Actually as he is in a low tax bracket, he could purchase the RRSP but he doesn't have to claim the deduction in the low tax years. It would be better to claim the deductions once he is back working and in the higher brackets like 44% before to get the max tax savings

I know people who do this and will deduct only down to the lowest or 2nd lowest bracket. They preserve deductions just for the higher brackets.
 

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I don't understand why everyone out here is concerned if I am getting paid or not. That should be of no concern to anyone because I am not going to pay to you for your response anyway !!

Also, It should not matter if I can lookup or cannot lookup. If you have the answer you can respond. I do not need business advice from anyone
... that's your problem here. You're looking for "free" advice here to pass on [aka your convoluted expertise] to your "client".

Good luck and bye! EOM
 

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I don't understand why everyone out here is concerned if I am getting paid or not. That should be of no concern to anyone because I am not going to pay to you for your response anyway !!
Sounds like you are looking at it from the wrong perspective ... the question is why use up spare time on your question when it looks like you have more time to spend on it as well as might be compensated for your time?

Basically, it's the reverse of walking up to a lawyer or accountant during a social function, asking a question that they would usually charge for then becoming upset when the response is "come to the office and we'll discuss fees".


... If you have the answer you can respond. I do not need business advice from anyone
Don't mean to add insult to injury or pile on ... but you do realise how hilarious it is for you to talk about "no needing advice" after posting a question on an amateur forum, right?


Cheers
 
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