For individuals with income greater than $60,000, the effective tax rate on capital gains is now lower than the tax rate for dividends. This means that it is better for a higher income individual to have more capital gains in his or her portfolio than interest or dividends.
You can deduct portfolio management fees and interest charges on money you borrow to earn investment income - even if you do not earn any investment income during the year. RRSP management fees and interest charges on money borrowed to invest in an RRSP are not deductible. Purchase your RRSP with cash and borrow for unregistered investments.
If you are determining your investment income from a statement supplied by your broker, do not double-report income that is already reported on a T-slip issued by your broker.
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