Tuesday, April 20, 2010

I just came back from my annual visit with the accountant - just as pleasant as visiting the dentist, but this time....

This is not always a good time of the year, when the tax man cometh.

So I went to my accountant to pick up my tax returns. After many years, I finally have to pay something that not blows me out of this world. Partially because my semi-retiree finances have finally stabilized. (I better find something new to get me in trouble.)

But not only that, my tax return print out declared I have room to make a sizeable RRSP contribution. I thought that I would have virtually no room to make contributions since I don't earn employment income any longer. My accountant explained to me that rental income also qualifies for determining your RRSP contributions.

So here is another advantage you may want to tell your retired JV investors about. Rental Income creates RRSP contribution room! Hope this is a useful tidbit. But before sticking out your neck, confirm this with your accountant.

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