The very rich make massive savings by knowing the tax advantages within the system; this canadian income tax guide will let you in on those secrets
Okay first off, this is not a make money quick guide. This article will outline tax secrets used by very rich Canadians, which can be used by average Canadians (me and you) to make massive tax savings.I know this system works because I have used it and managed to make money for the past two years. Unlike a get rich in 30 days scam, using this guide will take commitment and time researching which is the best tax strategy for your individual financial circumstances.
The very rich in Canada pay a far lower percentage of tax than the working or middle classes. So, as an average Canadian, you are paying a larger percentage of your earnings on tax than a millionaire. It seems like there is one tax law for the very rich and one the rest of us doesn’t it…but this is not the case, the Canadian Income Tax Act applies to us all.
The main difference between the very rich and the rest of us is financial education-knowing the tax system and its advantages.
So here is what the rich do:
Rather than using tax deductions or other deference systems (like RRSPs) the very rich focus on tax credits, which actually reduce your tax burden rather than just defer it.
Certain tax credits are more useful than others…one tax credit which allows massive tax savings is the charitable donation tax credit.
Take part in a program which allows you to maximise the tax advantage. To maximise the charitable donation tax credit you can take part in a donation tax shelter. This allows you to donate to charity and receive a tax credit which will allow massive savings on your tax bill.
A hypothetical donation scheme would work like this:
I want to buy 100 laptops for children in India. So, I go to a bank and I ask loan for the money for the 100 laptops.
The loan will be for 4 years and I will immediately pay off the interest for 3 years of the loan. I then go to a technology company who give me 100 laptops.
I get an agreement from them that I can return the same item back to them and get the full money I spent returned to me.
I now donate the 100 laptops to a registered Canadian charity and get a donation receipt for the amount I paid. I attach this to my tax return and get 50% tax credit.
3 years and 1 day later I take my 1 year’s worth of interest payment I have remaining and go to the overseas market and buy 100 laptops much cheaper than I could get from the Canadian technology company.
After returning these to the technology company, they give me back my money which I use to pay back my loan in full.
So, tax saving is the 50% tax credit minus the cost in pre-paid interest on the loan.
There are many other tax avoidance schemes available to the very rich, I outline this example as it one I have used successfully for the past couple of years.
As I said, this is not a get rich quick scheme, although you can see a large return on your financial input into the program within one year I would suggest a lot of research and examination of your own financial position before you make a decision on what type of program would suit you.
So, what is the main tax secret of the very rich? Knowing the system and its advantages; getting financially educated about taxes has allowed me to make massive savings and it can do the same for you. I have posted some of my research on my blog, please feel free to use it as a starting point.
Through a lot of research I have discovered a guaranteed way to save money on Canadian income tax. I share it for free on my website at http://www.mytaxmoneyback.com. Take control of your finances and live the life you deserve
I discovered a way to legally get my income tax money back from the CRA. My wife and I have been using this tax savings strategy for the past 2 years and it has made such a huge difference in our lives to get ahead financially, that I wanted to share this Canadian tax avoidance strategy with you and hopefully it will help improve your life as well. If you have any questions, go to my blog where I’ll explain all the details: www.mytaxmoneyback.com
Participating in a legal Tax Shelter is a huge part of my integrated financial plan to become financially free. For the past 2 years, I’ve been making my money grow for me and not someone else. Here I’m sharing some of the due diligence I did about this tax shelter…I hope it will help you learn more about this tax savings strategy.
Article from articlesbase.com