1. Taxation- Personal & Corporate
University of Winnipeg Investment Group

2. Taxation
In this world nothing can be said to be certain, except death and taxes- “Benjamin Franklin”
The only difference between death and taxes is that death doesn’t get worse every time congress meets- “Will Rogers”
Apart from death and taxes, the one thing that’s certain in this life is that I’ll never be a fashion icon-”Bruce Dickinson”

3. Tax Terminology
CRA: Canada Revenue Agency IRS: Internal Revenue Service Tax Credit: Straight up money in your pocket on your tax return Tax Deduction: Equal to the amount of income you don’t have to pay tax on Non-Refundable: Can only be used to bring net income to zero, cannot exceed Refundable: Can be used to bring net income below zero, which results in a refund balance

4. Personal
Basic Personal Amount: The considered poverty line in Canada: You don’t pay tax on income up to this amount
Federal: $11,327
Provincial: $9,134
Tuition Deduction: The total amount you pay for tuition less UWSA, and University fees
Can be used in each year you’re going to school or carried forward for future years

5. Personal
Education allowance: An allowance given as a tax deduction for each month you’re in school
Full time: $400 a month for each month you’re in school for a given year
Part time: $120 a month for each month you’re in school for a given year
Textbook allowance: A flat allowance given as a tax deduction for each month you’re in school
Full time: $65 a month for each month you’re in school for a given year
Part time: $20 a month for each month you’re in school for a given year

6. Manitoba Tuition Fee Tax Rebate
Eligible to claim 60% of your life time tuition costs
$5000 x4-5 x 60% years=$12,000-$15,000
Can be used in as little as 7 or maximum of 20
Must stay and work in Manitoba

7. Tax Rates-Marginal 15% on the first $45,282 of taxable income, +
20.5% on the next $45,281 of taxable income (on the portion of taxable income over $45,282 up to $90,563), +
26% on the next $49,825 of taxable income (on the portion of taxable income over $90,563 up to $140,388), +
29% on the next $59,612 of taxable income (on the portion of taxable income over $140,388 up to $200,000), +
33% of taxable income over $200,000

8. Other Personal Fitness Tax Credit Public Transit Tax Credit
Medical expenses deduction
Dentist expenses deduction
Donation-20% as a non-refundable
Employment Insurance
Canada Pension Plan
Union dues

9. Investment
Registered Retirement Savings Plan(RRSP) Tax deduction: Every dollar you put in an RRSP is considered a tax deduction Group Savings Plans/Defined Contribution Plans: Every dollar you put in a group savings plan is considered a tax deduction Total amount of these two cannot exceed 18% of your income up to a maximum of $24,930 Dividend Tax Credit: Gross up(Total) tax rate of 38%-Manitoba offers an 11% rebate so (38-11)=27% effective rate TFSA: Non-taxable at every level

10. Investment
Capital Gains: Taxed at one half of your marginal tax rate Strategy: Use registered accounts, create homemade dividends through capital gains Home made dividends: Dividends through sale of shares, so capital gains Why? Dividends: 27% tax rate or for someone earning $45,000: 7% capital gains

11. Free Money Manitoba Personal Tax Credit: $195
$113 for each spouse or dependant
GST/HST Tax Credit: $100 every 3 months
Additional for each spouse/dependant
Education Property Tax Credit:20% of total rent minus 250 up to a maximum of $750

12. Example-Student making $20,000
Personal amount: $11,000
Education allowance: $400x8=$3200
Tuition amount: $5,000
Textbook: $65 x 8= $520
Total: $19,720
Taxable Income: $280
Tax Paid: $3000
Rent Deduction:$750
Tax owed: $42
Total Tax Refund: $3708

13. Student making no income
Personal Tax Credit: $195
Rent Deduction: $750
Total Tax Refund: $945
Total Tuition Carry forward room after 4 years:
$46,880
Total Tuition Carry forward room after 5 years:
$58,600
Estimated Tax refund in the future:
$11,720 or $14,650

14. Do your taxes yourself https://simpletax.ca
Do not pay H&R or any other tax place fees
Everyone wants to save as much as possible