Comments on: The Preet Principle: Leveraging to Invest the Right Way! Part 2 of 4 http://wheredoesallmymoneygo.com/the-preet-principle-leveraging-to-invest-the-right-way-part-2-of-4/ A personal finance blog written by Preet Banerjee Fri, 25 May 2012 08:03:33 +0000 hourly 1 http://wordpress.org/?v=3.1.2 By: Preet http://wheredoesallmymoneygo.com/the-preet-principle-leveraging-to-invest-the-right-way-part-2-of-4/#comment-219 Preet Wed, 12 Dec 2007 11:55:38 +0000 http://symbiantcapital.com/2007/12/02/the-preet-principle-leveraging-to-invest-the-right-way-part-2-of-4/#comment-219 <p>Thanks for your comment CTR, that is an EXCELLENT point.</p><p>Always make sure to check with your own professional advisor, or even with the CRA directly - they are happy to take your call.</p><p>I know that may sound sarcastic, but it's actually true! :)</p><p>Preet</p> Thanks for your comment CTR, that is an EXCELLENT point.

Always make sure to check with your own professional advisor, or even with the CRA directly – they are happy to take your call.

I know that may sound sarcastic, but it’s actually true! :)

Preet

]]> By: Cross the River http://wheredoesallmymoneygo.com/the-preet-principle-leveraging-to-invest-the-right-way-part-2-of-4/#comment-218 Cross the River Sun, 09 Dec 2007 08:12:13 +0000 http://symbiantcapital.com/2007/12/02/the-preet-principle-leveraging-to-invest-the-right-way-part-2-of-4/#comment-218 <p>Salutations,</p><p>A very good post but I always feel compelled to add that interest deductibility of leveraged investments does not apply the same in every province. It does seem that Quebec is a distinct society lol. Since 2004, one can only deduct interests to a maximum of what was gained (*sigh*) although this is only true for the Quebec part of income taxes. </p><p>But (once again) as none should try leveraging without proper due diligence, any professional adviser will point this out.</p><p>Cheers</p><p></p> Salutations,

A very good post but I always feel compelled to add that interest deductibility of leveraged investments does not apply the same in every province. It does seem that Quebec is a distinct society lol. Since 2004, one can only deduct interests to a maximum of what was gained (*sigh*) although this is only true for the Quebec part of income taxes.

But (once again) as none should try leveraging without proper due diligence, any professional adviser will point this out.

Cheers

]]> By: Preet http://wheredoesallmymoneygo.com/the-preet-principle-leveraging-to-invest-the-right-way-part-2-of-4/#comment-217 Preet Mon, 03 Dec 2007 03:31:18 +0000 http://symbiantcapital.com/2007/12/02/the-preet-principle-leveraging-to-invest-the-right-way-part-2-of-4/#comment-217 <p>Good point Mike - another reason why it's a good idea to run your strategies through a professional tax advisor.</p><p>A good tax resource are the Ernst and Young tax calculators: <a href="http://www.ey.com/GLOBAL/content.nsf/Canada/Tax_-_Calculators_-_2007_Personal_Tax" rel="nofollow">Click here to see how much your write offs save you in tax.</a></p><p>You should enter in your income before the write-offs and then write down the tax payable - THEN, enter in your income less the write-offs and it will give your new tax payable. The difference between the two will be your approximate refund.</p> Good point Mike – another reason why it’s a good idea to run your strategies through a professional tax advisor.

A good tax resource are the Ernst and Young tax calculators: Click here to see how much your write offs save you in tax.

You should enter in your income before the write-offs and then write down the tax payable – THEN, enter in your income less the write-offs and it will give your new tax payable. The difference between the two will be your approximate refund.

]]> By: FourPillars http://wheredoesallmymoneygo.com/the-preet-principle-leveraging-to-invest-the-right-way-part-2-of-4/#comment-216 FourPillars Sun, 02 Dec 2007 20:59:33 +0000 http://symbiantcapital.com/2007/12/02/the-preet-principle-leveraging-to-invest-the-right-way-part-2-of-4/#comment-216 <p>Interesting series.</p><p>One other thing to watch for in terms of calculating the tax rebate of any potential plan is the different tax brackets. If someone who makes $80k has $12k in interest costs they are writing off then the tax rebate won't be just at their marginal rate since they will drop down a bracket or two. Same thing if they make rrsp contributions.</p><p>Mike</p> Interesting series.

One other thing to watch for in terms of calculating the tax rebate of any potential plan is the different tax brackets. If someone who makes $80k has $12k in interest costs they are writing off then the tax rebate won’t be just at their marginal rate since they will drop down a bracket or two. Same thing if they make rrsp contributions.

Mike

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