Hi All,
I currently have an amex aeroplan card, I am not using it and want to cancel. will Amex give me a prorated refund on my annual dues?
If so is there a law in canada that they have to?
I recently called Amex about this very issue and the CSR indicated that they will refund the pro-rated (unused) fee.
the policy, in the card agreement, is they will not refund any annual fee if pts are awarded.
if they aren't awarded, i am unsure. i'm trying to get that done right now with MC so we'll see.
Monday, January 10, 2011
TFSA, stocks, and taxation - a tricky question
Hey!
Quick question about TFSAs. So I know that based on the 2009 changes to the TFSA, you can't contribute more to a TFSA per year than is allowed for that year even if you make 'withdrawals' that year (there's lots of information about this rule on the net).
BUT... what is a 'withdrawal'? Here's a scenario: Let's say you have $10000 worth of contribution room in 2010 and you put it all in a questrade TFSA (or any generic online trading TFSA) and invest it all in stock A. That same year, the stock value goes up so your stock are now worth $15000. You decide to sell the stocks because you expect it to drop and buy $15000 worth of shares in stock B (all in 2010).
So here's the question... does this constitute an over contribution? Is a withdrawal from your TFSA classified as (a) the actual selling of the stock OR (b) withdrawing cash from the amount. If it's the former, then my scenerio results in an over contribution. If it's the latter, then i haven't over contributed... and I can buy and sell shares within a TFSA in a single year without over contributing.
Tried to find the answer to this question and couldn't find it. Really appreciate your help!
No it doesn't constitute as an over contribution.
b) Doesn't matter what you do in the account, what matters is what you transfer into the account and what you transfer out of it. Buying/selling stocks in a TFSA doesn't put money in or take money out of the account.
To clarify, a withdrawal would be considered as a transfer of cash or a security out of a tfsa to a non-tfsa.
Quick question about TFSAs. So I know that based on the 2009 changes to the TFSA, you can't contribute more to a TFSA per year than is allowed for that year even if you make 'withdrawals' that year (there's lots of information about this rule on the net).
BUT... what is a 'withdrawal'? Here's a scenario: Let's say you have $10000 worth of contribution room in 2010 and you put it all in a questrade TFSA (or any generic online trading TFSA) and invest it all in stock A. That same year, the stock value goes up so your stock are now worth $15000. You decide to sell the stocks because you expect it to drop and buy $15000 worth of shares in stock B (all in 2010).
So here's the question... does this constitute an over contribution? Is a withdrawal from your TFSA classified as (a) the actual selling of the stock OR (b) withdrawing cash from the amount. If it's the former, then my scenerio results in an over contribution. If it's the latter, then i haven't over contributed... and I can buy and sell shares within a TFSA in a single year without over contributing.
Tried to find the answer to this question and couldn't find it. Really appreciate your help!
No it doesn't constitute as an over contribution.
b) Doesn't matter what you do in the account, what matters is what you transfer into the account and what you transfer out of it. Buying/selling stocks in a TFSA doesn't put money in or take money out of the account.
To clarify, a withdrawal would be considered as a transfer of cash or a security out of a tfsa to a non-tfsa.
question re: HBP
I am trying to figure out if I am eligible to use my RRSP money for the Home Buyers Plan.
Here's the scenario:
My wife bought a condo and used her HBP in 2005. We were not together at the time. We met in 2006. We were married in 2008. We've both lived in the condo to date and its our principal residence. My name is not on the condo (deed, mortgage etc.) but we do have joint financial accounts. I have never owned a home.
We intend to purchase a new principal residence in spring of 2011. We are unsure if we are selling or renting out the condo. The new home will likely be in both our names (but if I can qualify alone and this means access to HBP then that's preferable but not likely).
So, my question is - based on what I've described above - do I qualify as a "first-time home buyer"?
Reading this link is bloody confusing.
Specifically, my [now] spouse did own a home in 2007 (4 years before 2011) however we were not married in 07 but I was living with her, so I'm curious if that factors into things today?
my interpretation of that link is no.
because u lived in the same condo which she owns and is her principle place of residence as well as yours.
the 4-5 year thing applies after when you sell your home.
So you would not be eligible for Home Buyer Plan till 4 calendar years after selling the existing home and not live in a principal home during this time.
Here's the scenario:
My wife bought a condo and used her HBP in 2005. We were not together at the time. We met in 2006. We were married in 2008. We've both lived in the condo to date and its our principal residence. My name is not on the condo (deed, mortgage etc.) but we do have joint financial accounts. I have never owned a home.
We intend to purchase a new principal residence in spring of 2011. We are unsure if we are selling or renting out the condo. The new home will likely be in both our names (but if I can qualify alone and this means access to HBP then that's preferable but not likely).
So, my question is - based on what I've described above - do I qualify as a "first-time home buyer"?
Reading this link is bloody confusing.
Specifically, my [now] spouse did own a home in 2007 (4 years before 2011) however we were not married in 07 but I was living with her, so I'm curious if that factors into things today?
my interpretation of that link is no.
because u lived in the same condo which she owns and is her principle place of residence as well as yours.
the 4-5 year thing applies after when you sell your home.
So you would not be eligible for Home Buyer Plan till 4 calendar years after selling the existing home and not live in a principal home during this time.
Quebec - 1000$ bonus from the company. 1000$ cash or 500$cash/500$gift card?
I know the majority are in Ontario but I'm unsure if bonus taxes work the same in Quebec.
I have the choice of having 1000$ cash or 50/50 split of 500$ gift card (for a choice of clothing store like AE, Hollister, Zara) and 500$ onto my paycheck.
Even if I take 1000$ to my paycheck and I get taxed almost 60%, don't I still get that amount back by the end of the year when the govt sends out the income tax cheques?
Or should I start an RRSP and dump it there?
if it matters, I'm 23, a part time student, working part time, earning less than $21k.
I thought this was an interesting question as both are cash linked and the idea is to reduce the amount of taxes applicable from this bonus. However according to Revenu Quebec gift cards are not considered a taxable benefit (up to a value of $500, see page 39).
http://www.revenu.gouv.qc.ca/documen...2010-10%29.pdf
I have the choice of having 1000$ cash or 50/50 split of 500$ gift card (for a choice of clothing store like AE, Hollister, Zara) and 500$ onto my paycheck.
Even if I take 1000$ to my paycheck and I get taxed almost 60%, don't I still get that amount back by the end of the year when the govt sends out the income tax cheques?
Or should I start an RRSP and dump it there?
if it matters, I'm 23, a part time student, working part time, earning less than $21k.
I thought this was an interesting question as both are cash linked and the idea is to reduce the amount of taxes applicable from this bonus. However according to Revenu Quebec gift cards are not considered a taxable benefit (up to a value of $500, see page 39).
http://www.revenu.gouv.qc.ca/documen...2010-10%29.pdf
Does cancelling your credit cards affect your credit rating?
I just applied and got a sears master card because it gave $10 off of my first purchase. But I have no real need for it as I already have a visa. It is a no annual fee credit card, so my question is does cancelling it right away or within a month have any negative consequences? Ie. bad credit rating etc.
Thanks
Signing up:
You reduced the average age of accouts > Lower score
You added a recent credit file inquiry > Lower score
You decreased your percentage utilization > Higher score
Cancelling:
Would increase your average of accounts > Higher score
Would decrease your percentage utilization > Lower score
Doesn't change the fact that you had a recent inquiry > No effect relative to the current situation
Overall, if you cancel, you will be in a slightly worse position than you were at before you signed up. But it is quite marginal and will heal itself after some months. My advice is to just cancel it if you don't need it.
Thanks
Signing up:
You reduced the average age of accouts > Lower score
You added a recent credit file inquiry > Lower score
You decreased your percentage utilization > Higher score
Cancelling:
Would increase your average of accounts > Higher score
Would decrease your percentage utilization > Lower score
Doesn't change the fact that you had a recent inquiry > No effect relative to the current situation
Overall, if you cancel, you will be in a slightly worse position than you were at before you signed up. But it is quite marginal and will heal itself after some months. My advice is to just cancel it if you don't need it.
What's the best way to buy around 10k US dollars with Canadian dollars
Not sure if this has been asked before. I did a search but didn't really find anything. I currently have around 10k Canadian dollars in TD bank and want to buy US dollars since our dollar is higher now. On TD's website their current buying rate is .9763 which I think is kind of rip off. Is there any better way of doing this? Thanks.
1) Use Knightsbridge or other equivalent foreign currency and bullion exchange companies. Their buy/sell rates are so narrow (especially when trading large amounts like you're planning to do).
2) CALL the bank you want to do the exchange with and haggle for a better rate. In fact, the TD bank officer through whom I opened my USD borderless account encouraged me to do this whenever I want to exchange a large amount of money.
3) Norbert's gambit
1) Use Knightsbridge or other equivalent foreign currency and bullion exchange companies. Their buy/sell rates are so narrow (especially when trading large amounts like you're planning to do).
2) CALL the bank you want to do the exchange with and haggle for a better rate. In fact, the TD bank officer through whom I opened my USD borderless account encouraged me to do this whenever I want to exchange a large amount of money.
3) Norbert's gambit
Personal residence exemption
Can two spouses each declare their own personal residence for tax purposes when a house is sold? I'm not asking this so that a couple could effectively avoid taxes on the cap gain on two homes but thought that each person could claim their own exemption somehow.
The short answer is no. Have a read of this page from the CRA talking about the principal residence exemption.
http://www.cra-arc.gc.ca/tx/ndvdls/t...ng/mr-eng.html
The short answer is no. Have a read of this page from the CRA talking about the principal residence exemption.
http://www.cra-arc.gc.ca/tx/ndvdls/t...ng/mr-eng.html
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