[jcl219]

My company has paid out my banked vacation in a lump sum as part of my severance settlement. The payout amount is just over $100K (less than $50K net after all the deductions). How could I limit my taxable income for the year?

 

[Oldroe]

Take it in cash and put 50k in a flow threw LP

 

[CuriousReader]

The payout amount is just over $100K (less than $50K net after all the deductions).

Sorry for my ignorance, but how did you end up with less than half of the amount after deductions, and that still hasnt include taxes?

 

[FrugalTrader]

As others have mentioned, if you only cleared $50k after the $100k owed, taxes are most likely already taken out.

 

[Oldroe]

It's probably to late. Anybody take there full paycheck and pay there own taxes.

So you get your 100k find a good flow threw jr oil/gas LP, put 50k in covers your tax and your return in 2 years will be just under 90% then if if if it makes money it buys share of a mutual fund.

 

[OhGreatGuru]

My company has paid out my banked vacation in a lump sum as part of my severance settlement. The payout amount is just over $100K (less than $50K net after all the deductions). How could I limit my taxable income for the year?

Ask your company how much, if any, of your severance settlement qualifies as a "retiring allowance" under CRA rules. Part of it might be eligible for extra RRSP contribution room. There is a formula in CRA Guide to Registered Retirement Plans T-4040 - Chart 8.

Other than that, it's probably too late to do much now that it it has already been paid out. Might have been better to negotiate with company to see if it could be split over 2 tax years.