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8.31.2010

Paypal for your e-money needs this back to school season

Whether you're sending someone off, or heading back yourself, PayPal Send Money is a great way to handle your expenses this September.It's the faster way to send money – online or by mobile. And it's FREE* when sent in Canada.

I found it faster than email money transfers provided by cibc and scotiabank.

What's your preferred way to send money electronically?
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8.30.2010

69 Ways to Feel Good About Keeping More Money in Your Wallet http://multipleeggbaskets.blogspot.com

Have you ever agreed to go on a coffee run with a friend or co-worker, ordered your black coffee, and then grabbed rabbit ears? I’m talking about pulling out no nickels, no dimes, no quarters -- nothing!

Well if you’re in dire need of re-balancing your debits and credits to favour in your direction then I highly recommend that you review my 69 Ways to Feel Good About Keeping More Money in Your Wallet.

1. Customer Loyalty: Join and participate in only a select few customer loyalty programs. If you constantly shop amongst several stores for common products then you’ll never acquire the benefits of the customer loyalty programs. I personally shop at one drug store for my food staples whenever they have a 20x times the points event. I then accumulate the points for free products at a future date.
2. Reduce your number of credit cards: I have 2 credit cards. One is a CIBC Aerogold Visa and the other is a Scotiabank Cash Back Rewards credit card.
3. Combine banking services: In order to reduce external ATM fees, I primarily work with CIBC and President’s Choice Banking. They offer interchangeable services which help me to avoid unncessary service fees.
4. Keep a minimum balance: If at all possible then make an effort to stay within the minimum banking balance requirement in order to avoid additional account fees each month.

....more coming soon

8.27.2010

Tipping and personal finance

So I decided to go have some lunch at a fantastic restaurant with my significant other. The best part of eating with her, besides the wonderful conversation, is the ability to sample off of her plate. That way I can try two menu items for the price of one.

Also, in order to pay with visa the waitress brought over a portable debit machine. This model didn't provide the option to tip by percentage. I aint da dumbest guy but sometimes I'm mentally lazy during my cherished friday lunch and don't care if it adds up to 15 percent or not.

The moral of the story is if ya want yer 15 tip restaurants then make it simple and give the percentage option for the portable debit machines!
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8.26.2010

Cheque check scan and deposit at wachovia bank?

I was watching a tv show about stock picks the other day and a new commercial was on tv. It showed a loving couple sitting on their bed and taking images of a cheque from uncle bob. They used their smartphone to upload an image of the front and back of the cheque and then sent it to their bank, which I believe was wachovia bank in the united states. Pretty crazy stuff since they can now accpet cheques any time of day and from anywhere. I'd love to see their IT plans on maintaining security and reducing cheque fraud.
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8.24.2010

Buyout definition and potash

Considering the recent interest in potash and the proposed buyout from bhp then it is worthwhile to actually review the definition.

Definition 1

Purchase of the controlling stock or shares of a firm by its own management. If borrowed funds are used in the buyout, it is called a 'leveraged buyout.'

Definition 2

Purchase by a publicly traded firm of its outstanding (held by the public) stock to thwart a takeover attempt, or to take the firm off the stockmarket for converting it into a private company.
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8.23.2010

Potash corp waiting for highest bidder?

What final share price will satisfy the execs at potash? Some skeptics are thinking that china will become a primary player in this bidding war to win potash.

I'm hoping that the potash stock price will be above 185 per share.

Would you sell as the price climbs or would you just sit back until the battle to win potash is done?
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Credit cards unauthorized transactions

I haven't been able to find as much information about how to proceed with unauthorized credit card access within Canada.  However, there is a lot of information about credit card abuse within the US.  Read through the summary below if you need some background on credit card abuse and invalid transactions for credit cards.



In the case of unauthorized use of your credit card, the Truth in Lending Act limits personal liability to $50. There is no time limit to report a card lost or stolen, but if you alert the issuer before someone else goes shopping with your card, you aren't on the hook for the charges.

Debit cards don't get the same treatment. You have to report a lost or stolen debit card within two business days to limit personal liability for fraudulent charges to $50. If the thief says "credit" at the register, it still doesn't transform the purchase into a credit card transaction.

"It just means you're processing it through the Visa and MasterCard payment networks as opposed to the other ATM networks when you use a PIN debit transaction," says Chi Chi Wu, a staff attorney with the National Consumer Law Center in Boston.

Billing errors

The Fair Credit Billing Act gives consumers the right to dispute "billing errors" on their credit card statements. Examples of billing mistakes include situations where you purchased goods online that were never delivered, the issuer didn't credit a payment or return of goods, or your statement contained duplicate charges for the same transaction.

The law gives consumers a limited amount of time to catch such errors and take action. You must send a dispute letter within 60 days of the first statement that contained the mistake to the address for billing inquiries. Then the creditor must do an investigation and resolve it within two billing cycles or 90 days, whichever comes first.

The letter must provide your name and account number, a statement that the bill contains an error, the dollar amount in question and the reason for the dispute.

You can withhold payment on the portion of the bill in dispute, but are still obligated to pay at least the minimum due if a balance remains. The card issuer can still report late payments for undisputed debt.

Claims about the quality of goods and services

If your problem concerns the quality of goods or services purchased on your credit card, a section of the Fair Credit Billing Act gives you the right to dispute the charge and stop payment on that portion of the bill until the matter is resolved by the issuer.

"It's basically the right to raise claims and defenses that you have with respect to the merchant to raise them against the credit card company," says Wu.

The law has some important restrictions: The goods must have cost at least $50 and the purchase had to have been made in your home state or within 100 miles of your mailing address. Wu says to check with the card issuer if you completed the purchase online or over the phone.

These restrictions don't apply if the merchant is also the card issuer, or the seller mailed you an ad for the item you bought.

The law also requires that you attempt to resolve the issue with the seller first. Individual issuers may not demand proof, but direct dealings with the retailer may save the trouble of filing a dispute through the card company.

To withhold payment, Wu recommends sending a letter to create an evidence trail, but says you can file a claim over the phone.

Check with the issuer for other claims

Maybe the quality of the high-definition TV you bought is fine, but somebody steals it from your house the following week. Take it up with the issuer. Major credit cards may cover such losses.

Payment processors American Express, Discover, MasterCard and Visa all offer purchase protection on some cards for damage or theft of goods up to 90 days after purchase. Customers with a legitimate claim could receive a repaired or replacement item, or reimbursement for the cost.

Restrictions and benefits vary by program and card. For instance, American Express caps coverage at $1,000 per incident and $50,000 per policy year. Visa limits coverage to $500 per claim of theft or damage due to "fire, vandalism, accidentally discharged water, or certain weather conditions," according to its website.

Check with your issuer or benefits guide to see if your card offers this perk.


what is a void contract?

Contract that (1) is illegal (inherently void) from the moment it is made, (2) is legal but declared null (having no legal effect) by the courts because it violates a fundamental principle such as fairness, or is contrary to public policy, (3) becomes void due to changes in law or in government policy, or (4) has been fully performed. Lack of capacity to contract (being an infant or minor, intoxicated, or insane) automatically makes a contract void. Contract that is void only in one or few parts may be saved by the process of severance. Not to be confused with voidable contract.

8.20.2010

Fractional ownership of a leisure property

Have you researched the concept of fractional ownership in order to enjoy a leisure property? It allows you to have a cost effective means to access a lakeside or mountain view property.

It differs from timeshares and full ownership and can be part of your future investment portfolio.

There are numerous options especially in places like lake louise, banff, or mont tremblant. Check with multiple vendors online and do a search for 'fractional' and then you'll find several options.
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8.19.2010

on the brink of bankruptcy

Dear Bankruptcy Adviser,
I feel like I am on the brink of bankruptcy. I have a condo that is upside down more than 50 percent. My credit card debt is almost $25,000. I am finding it harder to make it each month. I am seeing my credit card interest rates going up, and I am taking out payday loans just to keep up. But I am finding that I am sinking with no way out. My salary would cover my mortgage -- both first and second. I own my car but it's only worth about $2,000. It at least gets me back and forth to work. I make $55,000 per year, and my job is pretty steady right now. Should I seek credit counseling or just try to file bankruptcy?
-- Lori

AnswerDear Lori,
You need to take a step back and review your situation objectively, meaning, you need to see what I would see as a bankruptcy attorney. I am not saying you need to or must file bankruptcy; rather, just consider the following:

You are no longer living paycheck to paycheck. Payday loans are now necessary for you to even make it to the next paycheck. This will become impossible to maintain. From what I have seen, regardless of my opinion on payday loans, they act as nothing more than a finger in a leaking dam. One leak is plugged for now, but another will sprout soon.

From my experience in working with more than 10,000 people in my short career, payday loans are the most common tipping point into bankruptcy. Usually, getting a payday loan means you are no longer able to manage your day-to-day expenses. This is when I know a person is beyond the brink.

You are informally in bankruptcy. You are worth less than what you owe and you have fallen behind on credit cards and property taxes. You do not mention whether the house is too much of a burden, but it appears you want to keep that at all costs.

Your debt of $25,000 is not insurmountable. It is not enough, by itself, to force you into bankruptcy. But if you cannot find a way to get another few hundred dollars into your monthly budget, the debt could be just too much to handle.

There are three solutions for you to consider:

1. Prior year tax refund. You are paying on the mortgage and writing off the interest payments. You might be getting large federal and state tax refunds. That refund amount would tell me quite a bit. If you are receiving a significant refund each year, for example $4,000 or more, then you need to consider increasing your payroll deductions. You could bring another $300 per month into your budget simply by increasing deductions.

2. Credit counseling. This is professional financial counseling provided by nonprofit organizations that help consumers find ways to repay their debt through careful budgeting and management of money. Most creditors work with reputable credit counseling companies. You can consolidate your monthly credit card payments into one single payment.

You need to be careful before electing credit counseling. You must make sure that all your credit card bills will be paid through the plan. If not, you will find it almost impossible to make one payment to the credit counselor and other payments to the creditors not inside the plan.

You may be beyond this service. Unless you can pay off the payday loans, finding additional money to make payments to a credit counseling agency might be impossible.

3. Bankruptcy. You might be eligible for either Chapter 7 or Chapter 13 bankruptcy. You can consult with a bankruptcy attorney in your area to determine whether bankruptcy is an option, or research this option online.

You may have the ability to wipe out your second mortgage in bankruptcy, or relieve some of the pressure by wiping out the credit card debt. At the very least, bankruptcy might help relieve some of your financial tension.

Seek advice and make a decision right away. Don't waffle with your final decision because you need to act and not put off a tough decision. Otherwise, you will get caught in the impossible cycle of payday loans, one that is almost impossible to stop. I hope that you can find a reliable and trustworthy person or service to assist you.

Bloomberg news: BHP Bid, Russian Takeovers Show Potash Prices Have Bottomed, Fertecon Says

BHP Bid, Russian Takeovers Show Potash Prices Have Bottomed, Fertecon Says

Would you invest now hoping that the news of a takeover on potash would increase the pot stock price? I bought pot during the last market crash so I'm on a wild ride. Yeeehaaaa.

http://www.bloomberg.com/news/2010-08-19/bhp-takeover-bid-russian-acquisitions-show-potash-bottomed-fertecon-says.html
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Potash

Billiton to present bid to Potash investorsPolya Lesova MarketWatch August 19, 2010NEW YORK – Mining giant BHP Billiton went on the attack Wednesday, saying it will take its nearly $39 billion takeover bid for Potash Corp. straight to shareholders after the fertilizer firm's board spurned the offer as grossly inadequate.The Anglo-Australian miner expressed confidence in its $130-a-share all-cash offer for Canada-based Potash Corp. of Saskatchewan Inc.The offer values the company at $38.6 billion and represents a 20 percent premium to the closing price of Potash Corp.'s shares on Aug. 11, the day before BHP Billiton's first approach to the firm."We firmly believe that Potash Corp. shareholders will find the certainty of a cash offer, at a premium of 32 percent to the 30-trading-day-period average, very attractive and we have therefore decided to make this offer directly to those shareholders," said BHP Billiton Chairman Jacques Nasser in a statement.But that's not likely to sway Potash directors, according to Credit Suisse report. Fair value for the company is likely between $148 and $180 a share.Potash, a pale yellow compound mined predominately in Canada, Russia and Ethiopia, is an important ingredient for fertilizers, which have seen increased demand on the back of higher grain prices."A bid based at a 50 percent premium (about $163 a share) may be acceptable to the Potash board – but would probably require an accompanying BHP buyback to make the metrics more attractive to BHP shareholders," the investment firm said.At $163 a share, the acquisition would be accretive to BHP by 1 percent in the fourth year, Credit Suisse said. The earlier offer would have been accretive by 5 percent in the third year.Potash stock rallied 28 percent Tuesday after the company announced its board had rejected BHP's offer as inadequate. Billiton to present bid to Potash investorsPolya Lesova MarketWatch August 19, 2010NEW YORK – Mining giant BHP Billiton went on the attack Wednesday, saying it will take its nearly $39 billion takeover bid for Potash Corp. straight to shareholders after the fertilizer firm's board spurned the offer as grossly inadequate.The Anglo-Australian miner expressed confidence in its $130-a-share all-cash offer for Canada-based Potash Corp. of Saskatchewan Inc.The offer values the company at $38.6 billion and represents a 20 percent premium to the closing price of Potash Corp.'s shares on Aug. 11, the day before BHP Billiton's first approach to the firm."We firmly believe that Potash Corp. shareholders will find the certainty of a cash offer, at a premium of 32 percent to the 30-trading-day-period average, very attractive and we have therefore decided to make this offer directly to those shareholders," said BHP Billiton Chairman Jacques Nasser in a statement.But that's not likely to sway Potash directors, according to Credit Suisse report. Fair value for the company is likely between $148 and $180 a share.Potash, a pale yellow compound mined predominately in Canada, Russia and Ethiopia, is an important ingredient for fertilizers, which have seen increased demand on the back of higher grain prices."A bid based at a 50 percent premium (about $163 a share) may be acceptable to the Potash board – but would probably require an accompanying BHP buyback to make the metrics more attractive to BHP shareholders," the investment firm said.At $163 a share, the acquisition would be accretive to BHP by 1 percent in the fourth year, Credit Suisse said. The earlier offer would have been accretive by 5 percent in the third year.Potash stock rallied 28 percent Tuesday after the company announced its board had rejected BHP's offer as inadequate.
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Ing full service no fees self banking

Ing is now offering full service banking with no minimum balance requirement. They say that the average canadian pays 185 dollars in fees per year.
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8.18.2010

Your disposable income and google android

So if you're one of those tech junkies that likes to buy new gadgets then you could be at risk of the "java" wars with google and oracle.

The ruling of the proprietary rights around java could force more open source creativity that will not have stringent tech support backing. This will lead to less stable applications being placed on most new gadgets such as iphones, google android and even blackberry's.

Even if you think that IT means "it" then you should still stay tuned to the java wars because it will impact your pocket book.
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8.17.2010

Environment minister has serious concerns

Canadian Tire has admitted its stores have been charging consumers too much for eco fees since they came into effect on July 1. The company says it was the result of a computer glitch.

A receipt obtained by CTV Ottawa shows one Canadian Tire shopper was charged a 37-cent eco fee on a $1 jug of bleach. However, that charge should have been much less.

Examples listed in the Toronto Star on Wednesday indicate a shopper was charged a 60-cent eco fee on a $3 bottle of laundry detergent; another was charged a $3.23 eco fee on a $20 driveway sealer.

"We apologise to our customers for the inconvenience," said Canadian Tire spokesperson Amy Cole.

"Customers that return to the store with a receipt will be reimbursed the difference between the incorrect fee and the adjusted, correct fee."

Environment minister has serious concerns

In a letter to the head of Stewardship Ontario on Tuesday, Ontario's environment minister said he has "serious concerns" with overcharging of fees.

"Some retailers have been charging fees greater than the set fee Stewardship Ontario charges businesses. This is unacceptable and must be addressed immediately," said John Gerretsen.

"If the situation is not rectified, I will consider options to ensure consumers are not being misled about any fees being charged or eliminate altogether the ability to charge additional set fees to consumers."

What are the fees for?

The eco fees quietly came into effect on July 1, the same day as the Harmonized Sales Tax. The fees are applied to a long list of products, including aerosol containers, fire extinguishers, fluorescent tubes, syringes and needles, and all toxic, corrosive and flammable products.

The fees go to various stewardship councils across the province to ensure hazardous materials don't end up in landfills.

The Sierra Club of Canada says the program is important because hazardous material that isn't disposed of properly can become a health and environmental risk.

"Our water waste management systems aren't designed to capture those (hazardous materials) and process them out. (The systems) are about sanitizing, so they tend to go right through the system and end up in our drinking water, so we are drinking a watered down version of it," said John Bennett, executive director of the Sierra Club.

The first phase of eco fees were introduced on July 1, 2008. The Ontario government predicts the 13 new categories added to the program this month will help divert an estimated 26,000 tonnes of hazardous waste from the landfill in the first year alone.

Residents in Ottawa plan to protest the fee outside Premier Dalton McGuinty's office on Saturday.

With a report from CTV Ottawa's Catherine Lathem and Kate Eggins




FREE Crystal Light Pure Fitness from Vocalpoint!

FREE Crystal Light Pure Fitness from Vocalpoint!

Here is a free money saving coupon from Crystal Light.

8.16.2010

Oracle and Google at it. Faulty cell phones.

This will be interesting to watch the stock prices of these Silicon Valley giants.  Also, this could end up impacting your cell phone plans if they are to prove that the patents have been abused.  If Java becomes more of a proprietary programming language then their will slowly be an increase in more open source technologies and platforms.  That will cost lots of R&D dollars and the consumer will be dealing with faulty products for years.

 

Two Silicon Valley heavyweights are about to reenact the Java wars: this time, in a court room.

 

Oracle issued a press release late Thursday saying it has filed suit against Google for infringing on copyrights and patents related to Java, which Oracle acquired along with Sun Microsystems earlier this year. The terse release claimed Google "knowingly, directly and repeatedly infringed Oracle's Java-related intellectual property."

 

A copy of the complaint (PDF), which was filed in the U.S. District Court for the Northern District of California, says that "Android (including without limitation the Dalvik VM and the Android software development kit) and devices that operate Android infringe one or more claims of each of United States Patents Nos. 6,125,447; 6,192,476; 5,966,702; 7,426,720; RE38,104; 6,910,205; and 6,061,520."

 

A Google representative said the company had not yet been served with the lawsuit, and therefore couldn't comment until it had a chance to review it. An Oracle representative declined to comment beyond the complaint.

 

Back when Google first announced plans to develop Android in 2007, it immediately raised the blood pressure of Java developers at Sun. Google's Java implementation is different than the one advocated by a Java standards group, which worried those tech industry veterans who remember the problems that Microsoft caused for Java by following a similar path on Windows.

 

Of course, Java has been forked and fragmented many times over the years, destroying the "write once run anywhere" promise of the technology with different implementations on different computing platforms. Still, Oracle, on behalf of Sun, is arguing that Java is a mobile operating system competitor against Android, and that Google is using Java-derived technologies without a proper license.

 

Oracle also noted the interlocking history between Google and Java in its complaint, noting that "Google has been aware of Sun's patent portfolio, including the patents at issue, since the middle of this decade, when Google hired certain former Sun Java engineers." Google CEO Eric Schmidt led the team that developed Java at Sun prior to becoming CEO of Novell, and later Google in 2001. Urs Hölzle, senior vice president of operations and a Google Fellow, also played a significant role in Java's development in the 1990s, and apparently other Sun engineers have joined Google in the intervening years.

 

8.13.2010

Weekend thoughts to save you beer money

So I you take the time to cross over into gatineau then you can get 24 coors for 28 dollars including tax and deposit.
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8.12.2010

Variable Returns Can Work Against You in Retirement

Variable Returns Can Work Against You in Retirement

There is a rough stat that by 2012 approximately 50% of the Canadian federal government workforce will be eligible for retirement.

Guest writer profile: Marc Johnstone

Guest writer profile: Marc Johnstone
Insurance Specialist

Multiple Egg Baskets is pleased to welcome Marc Johnstone to our blog.

"I’m a highly-trained insurance advisor, who provides a wealth of knowledge and will help you understand your unique insurance needs and assist you in choosing the life and health insurance solutions that are best for you.

With RBC Insurance, I completed a series of courses and took in-depth training to become an insurance advisor who represents RBC Insurance exclusively. If you want to know all the ways life and health insurance can serve you, call me today. I apply this valuable knowledge to any insurance question, concern or need you may have, and can provide you with sound advice, clear communications, and a full range of product choices. I can take the complexity of life and health insurance and make it easy to understand."


Marc Johnstone can be reached at:

Phone: (613) 592-8007
Toll Free:(866) 439-9607
Fax: (613) 592-8077
Cell: (613) 282-0900

Guest writer profile: Brian Mason

Multiple Egg Baskets is pleased to welcome Brian Mason to our blog.

Brian Mason
Mortgage Broker Specialist


"Shopping for mortgages today can be difficult and time consuming. Let me work on your behalf to ensure you get the very best rates and flexibility with no pressure and no hassles.

With my background in economics and over 15 years experience as a business and operational manager I know what it takes to negotiate deals and deliver the knowledge, customer experience and results you are looking for. As a Mortgage Agent with Mortgage Brokers Ottawa I will work with you to assess your specific financing needs, negotiate with our lenders on your behalf and get you the best rates.

The best part is I work for you providing maximum flexibility in financing options and delivering the most competitive products and services to suit your individual needs. If you are looking for a comfortable, no hassle experience call or email me today to discuss your options."


Brian Mason can be reached at:

Telephone: 613-204-6061
Cell: 613-204-6061

788 Island Park Drive
Ottawa, Ontario
K1Y 0C2

Tel: 613-274-0055
Fax: 613-274-7389
Toll Free: 1-866-354-6789

Welcome aboard Brian!

See Brian's first article here.

Canada Learning Bond.

Canada Learning Bond. If your child was born after December 31, 2003, and you receive the National Child Benefit Supplement (available to families whose net income is less than $37,178 in 2007), you may be eligible for a Canada Learning Bond (CLB). If eligible, an initial $500 is deposited into your child’s RESP; plus you can get an extra $100 per year for up to
15 years, as long as you continue to receive the National Child Benefit Supplement.

Home personal savings

Don't forget to routinely check your home bills for savings.  I recently had a $10 Esso gift card and 20% off of Rogers cable offered to me simply because I was moving.  Customer loyalty goes a long way.

8.11.2010

Canadian Business Online: Editor's letter: Why Canada needs RIM to win

The following story is sent to you by : <alanarkin@soap.com>.

Personal Message:
Waterloo relies upon RIM, but does Canada's IT sector rely upon the creativity and R&D being produced by RIM as a gateway to a more competitive gloabl market place. You can argue that RIM has a foothold on the hardware side of the smart phone world but it's that actual usage of applications that will drive future market share and the success or failure of the company.


Rather than tripping over ourselves to predict its downfall, we should all be collectively rooting for RIM's success. Read more

My blackberry loses its ability to format text!

I once auditioned for Degrassi Junior High on CTV and a Walt Disney movie featuring Adam Beach.  It soon became apparent that my Hollywood star was not going to shine and that even though Paul Walker and Jessica Alba can make it onto the big screen I was not going to be as fortunate.  However, there is still ample opportunity for Canadians to make it in Hollywood or even Toronto with the implementation of various grants and tax advantages.  Who knows maybe I'll star in the Paul Gross's Men With Brooms Part Deux – The Night of the Bonspeil.Lucrative tax incentives and other funding are available to help nurture film and television production in this country, according to KPMG's global publication Film Financing and Television Programming – A Taxation Guide (Fifth Edition).These federal and provincial tax incentives, along with government support through loans, grants, equity investment, and corporate funding, provide for a fertile business environment, ensuring that Canada remains a great place for new and aspiring film and television producers."These incentives, including refundable tax credits, may not be widely known to newcomers to the film and television industry," says Ryan Friedman, Tax Partner with KPMG in Canada's Communications and Media practice. "This 'hidden money', along with incentives from film commissions in various provinces and territories, provide location and production assistance that truly help to make Canada 'Hollywood North'."The Canadian Film or Video Production Tax Credit (CFVPTC) is a fully refundable tax credit for qualified Canadian production companies that own the copyright in the production. The Income Tax Act and Regulations outline the tests that a Canadian production must meet to earn this production credit.The CFVPTC is available to taxable Canadian corporations whose primary business activity is the production of Canadian certified films that are carried on through a permanent establishment in Canada. In order to qualify for this credit, the producer of the production must be a Canadian resident individual or eligible corporation from beginning to end of production.Non-Canadians who wish to produce films or television shows in Canada are eligible for funding through the Production Services Tax Credit, which is mirrored in certain provinces as well.Additionally, Canadian provincial governments offer various tax credits to those under their respective jurisdictions. These include:• Ontario Film and Television Tax Credit (OFTTC)• Ontario Production Services Tax Credit (OPSTC)• Ontario Computer Animation and Special Effects (OCASE)• Film Incentive BC (FIBC)• British Columbia Production Services Tax Credit (PSTC)• The Alberta Film Development Program• Saskatchewan Film Employment Tax Credit                                                                       • Manitoba Film and Video Tax Credit• Quebec Film and Television Production Tax credit• Quebec Production Services Tax Credit• Quebec Dubbing Tax Credit• Nova Scotia Film Industry Tax Credit• New Brunswick Film Tax Credit• Newfoundland and Labrador Film and Video Tax Credit• Film Location Incentive (Yukon). "It is commendable that our government bodies, both at the federal and provincial levels, are committed to the film industry's sustainability and, hopefully, its growth. Independent film producers should avail themselves of this non-repayable free financing," says Kathy Cunningham, Industry Sector Leader, Communications and Media practice, KPMG in Canada. "However, in order to benefit from these incentives, one must first be aware of them. The Taxation Guide provides this essential information."KPMG's Taxation Guide is a useful tool for those looking to learn about accessing these credits. However, it is still recommended that aspiring producers seek the advice of tax professionals.                                                                                                                                                                                                "These initiatives demonstrate quite clearly that producing films and television in Canada need not just be 'a labour of love'," says Friedman. "It also makes good business sense and adds to our cultural and financial well-being."
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8.10.2010

Island Home For Sale

CANADA / UNITED STATES CROSS BORDER TAX ISSUES

CANADA / UNITED STATES CROSS BORDER TAX ISSUES

 

Whether you are an American citizen living in Canada or a Canadian owning a vacation property in the United States, there are and will continue to be many cross border tax issues. This post will outline of some

of the important considerations and reporting requirements. Future Posts will deal with specific areas

in more detail.

 

From the Canadian side, the most significant issue seems to be Canadians owning US vacation property or spending significant amounts of time in the United States. From the US side, the most significant issue is

usually about US citizens who have taken jobs in Canada – many in the technology sector. Such individuals are often in Canada from two to five years but some stay longer. Major tax issues can arise in sorting out the

rules when they move to Canada or back to the US. While living in Canada, Americans will have to file both Canadian and US returns.

 

The major Canada / US tax issues can be broken down into four areas:

  1. Understanding Canadian and US tax laws and how their differences apply when reporting in either country
  2. Cross border tax rules (found primarily in the Canada – US Tax Treaty) meant to mitigate double taxation
  3. Issues with respect to Canadians receiving income from, owning assets in or living in the United States
  4. Issues with respect to Americans deriving income from, owning assets in or living in Canada

 

Canada / US Liability for Income Tax

Canada taxes individuals who live here (residents of Canada) on their worldwide income. Except in limited situations, a resident of Canada is not defined in Canadian tax law. When taxes are paid on income from

sources outside Canada, subject to some limitations, Canada will allow a tax credit for foreign taxes paid in order to reduce or eliminate double taxation. Because Canada only taxes its residents, anyone leaving Canada

to become a resident of another country must pay Canadian tax (departure tax) on unrealized gains. The departure tax does not apply to such income as pensions or RRSP’s but Canada will get its tax bite through

withholding taxes when such plans pay income to persons after they have moved from Canada.

 

The United States taxes both citizens and residents, so no matter where US citizens live, they will pay US income taxes and of course must file US tax returns each year. They will also continue to be liable for US

estate and gift taxes (Canada no longer has estate or gift taxes).

 

Our Tax Rules are Simply Different

Wherever Canadians become entangled in US tax law or Americans become entangled in Canadian tax laws, the fun begins. Our laws are just different in many respects and taxpayers are often surprised (on both sides)

how difficult it is to sort things out. Some examples:

 

When you leave Canada you are deemed to have sold most of your property and will automatically establish a new cost base for Canadian tax purposes. But for US tax purposes the historical cost will

still be recognized (usually to your detriment) unless it can be updated by some transaction.

United States does not recognize RRSP’s as a special tax entity.

Canada Taxes only part of capital gains (50%) but the US has a separate rate of tax on capital gains.

The US rate is almost always lower than the Canadian rate.

The US does not have a $500,000 capital gains exemption for the sale of shares of small business corporations so the exemption may be lost to US citizens living here.

The difference between each country’s tax laws makes cross border tax planning important in order to minimize total taxes. Fore warned is fore armed. Essentially what taxpayers should be trying to do is to organize their

affairs so that it is clear as possible how transactions are treated in both jurisdictions – no surprises!

 

Canadians Deriving Income From, Owning Assets In or Living in the United

States

Canadians become entangled in US tax reporting as Snowbirds vacationing in the United States. The United States has codified their tax laws on the definition of a US resident so if Canadians are physically present in the

United States for more than 183 days when adding the days in the current year to 1/3 of the days from the preceding year and 1/6 of the days in the second preceding year, they are deemed to be a resident of the United

States. But if they can show they have a “closer” connection to Canada, the United States will not consider them to be a resident. To do this they must file Form 8840 with the US Internal Revenue Service every year.

There are other important areas that visitors to the United States must plan for in order to stay out of the US tax net. Among these is the liability for US estate tax on US vacation properties and the requirement to pay US

income tax on rental income derived say from a Florida condo. Future issues of Post will deal with more of these areas but suffice it to say Canadians who are physically present in the United States every year or

have US property should have their US tax status reviewed by a professional advisor.

 

Americans Deriving Income From, Owning Assets In or Living in Canada

The plight of a US citizen deriving income from Canadian sources whether investment income, employment income or capital gains can also be complex. As indicated earlier, US citizens are subject to US income tax

whether or not they live in the United States and so they end up filing both Canadian and US tax returns when living in Canada.

 

US citizens owning vacation homes in Canada but not living here are not subject to the same complex rules that apply to Canadians owning vacation homes in the United States. On the other hand, there are many Americans

who have moved to Canada to become employees of Canadian corporations either for a few years or in some cases a lifetime. They are subject to Canadian taxes, as would any other resident of Canada. The more difficult

problem comes from the requirement to continue to file US personal income tax returns. Since they are now living in Canada, the liability for US income taxes will be a foreign tax here and creditable against Canadian

taxes. The Canadian tax return just got a little more difficult. Since Canadian taxes are generally higher than the US taxes, Americans will effectively only pay the Canadian government taxes on the difference between the

higher Canadian taxes and the lower US taxes. In other words, American citizens living in Canada pay tax at the higher of the two rates.

 

Many Americans living in Canada have not filed US returns for years. The US Internal Revenue Service is quite generous for those who chose to start reporting in order to get on side with US requirements. If they

apply for a US passport, the IRS will certainly catch up to them.

 

Forms for Filing With Canada and US Tax Authorities

There are many forms that should be filed both by Americans and Canadians when one becomes involved in the tax system of the other country. Following is a short list of the more important forms. Even if one does not

have income from a particular country, it is often important to file a particular form in that country to protect yourself from possible adverse tax consequences – now or in the future.

 

US Forms – Forms for Canadian and Americans

1040NR Non Resident Alien Income Tax Return

3903 Moving Expenses

3520 Transactions with Foreign Trusts and Receipt of Foreign Gifts

2350 Application for Extension of Time to File US Return

2555 Foreign Income Exclusion

TDF-90.22.1 Report of Foreign Bank and Financial Accounts

8833 Treaty - Based Return Position Disclosure

8840 Closer Connection Statement

W8 – ECI Exemption from Withholding of Tax (US Rental Income)

W7 Application for IRS Individual Taxpayer Identification Number

Canadian Forms – For American and Canadians

T2062 Request by Non-Resident of Canada for a Certificate of Compliance

Related to the Disposition of Taxable Canadian Property

T1135 Foreign Income Verification

T1248 Information About your Residency Status

T1141 Transfers or Loans to Non-Resident Trusts

T776 Rental Income

T1161 List of Properties by an Emigrant of Canada

NR73 Determination of Residency Status

 

Some of the forms listed above are simply for tax compliance to allow Canada and US tax authorities to know what is going on. The problem is that failure to file some of these forms (even though no immediate tax is

payable) involves hefty penalties for non-compliance.

 

Americans Owning Canadian Real Estate

Canada imposes a 25% tax on the sale price of Canadian real estate owned by non-residents at the time of the sale. The purchaser is liable to withhold the tax and must remit it to CRA. However, a non-resident owner can

reduce the tax by filing form T2062 with CRA prior to the sale which will then take into consideration the cost of the property for Canadian tax purposes. A declaration by the vendor about his or her country of residence is

on every real estate agreement to protect the purchaser who is liable for the tax if it applies and the inquiry is not made.

 

US Vacation Property

Protecting US vacation property from US estate tax has been a continuous challenge. One of the techniques sanctioned by CRA was to use a single purpose Canadian corporation so disposition did not occur on the death

of the Canadian shareholder whose corporation owned the US property. CRA agreed they would not attempt to tax owners on any personal benefit. CRA recently changed its mind on this and starting in 2005 no longer will

sanction owning a vacation property in such circumstances without a personal tax benefit.

 

Summing Up

The cross border tax issues are many and can arise in cases where they are not even expected. If you have any substantial transactions across the border – watch out and get some professional advice.

 

Other Thoughts to Consider

In dealing with US tax laws our sense of logic as Canadians can get in the way. Here are a few things you should know if you are a US citizen living in Canada or a Canadian resident with US assets or family members:

The IRS is suspicious of US citizens with any interests in non US trusts or corporations and will often look to tax them if possible If you have family members living in the United States be careful what you do in your Canadian estate

planning – it may put them into an adverse US tax position now or in the future.

 

  • If the beneficiary of a trust has full fights to encroach on capital, the IRS will effectively treat the trust assets as belonging to the beneficiary for US tax purposes.
  • If you were born in the United States, have a US parent or were born outside the United States to US citizen parents, you are a US citizen and subject to US tax law.
  • Citizens of the United States who give up their US citizenship are still considered US citizens for tax purposes unless they tell the IRS
  • US gift taxes apply to US real property
  • The IRS will try to get US situs property into the US tax net
  • RRSP’s have no special status in US tax law and are effectively treated as trusts. The IRS will look through to the assets of the RRSP to determine US tax treatment
  • The IRS is expected to issue a prescribed form for disclosing RRSP contributions and investments in the coming years
  • The Canadian departure tax does not apply to discretionary family trusts
  • The Canada US tax treaty is going to be amended to increase the US cost base of assets deemed to be sold under Canadian departure tax rules when Canadians move to the United States
  • When moving to the United States taxpayers should move as many assets as possible out of their estates by setting up a trust for a spouse for her health, education, maintenance and support
  • When moving to the United States it may be possible to arrange your affairs to maintain your Canadian domicile to reduce the liability for US estate tax.
  • Put life insurance into a life insurance trust before moving to the United States - especially if there is cash value
  • The IRS will treat green card holders as residents and domiciled in the United States
  • There is a rule in The Canada US tax treaty that will make you a resident of the United States if you are in the United States for a 31-day period assuming certain other conditions apply as well. So when departing the US try to do it in early January to avoid the residence designation in that year A typical Canadian estate freeze using a holding company has adverse tax consequences for anyone moving to the United States even though the foreign personal holding company rules have been cancelled
  • If you are using trusts in your estate planning and there are US beneficiaries try to structure the trust to be resident in the USA as opposed to Canada
  • Your US tax planning will become complicated if you have set up trusts for children and then they move to the United States

 

The Unified Estate Tax Credit (currently 1.5 million dollars) is prorated for Canadians owning US property on the basis of US property to total property (as defined by US rules which for example would include life insurance)

Do not buy US vacation properties in joint ownership with a right of survivorship. Use tenants in common ownership One of the best methods to reduce US estate tax is to register a non-recourse mortgage against the US property

For US valuation purposes, minority interests will be discounted.

 

US citizens can lower the value of their estates by making annual gifts of up to $11,000 to anyone and $114,000 to a spouse who is not a US citizen

The use of Retirement Compensation Arrangements (RCA) can be beneficial to US citizens living and working in Canada for short periods of time to equalize the Canadian tax rate to the US tax rate say over a five year period

 

The above guidelines may only be good the day they are written so get professional advice. Both Canadian and US tax laws and especially cross border issues are constantly changing. Taxpayers with significant US assets

should have US tax advisors - otherwise the consequences can be devastating. In many cases, US tax advisors need only be brought in when structures are set up and then consulted periodically thereafter.

 

 

8.06.2010

My Own Advisor: Dividend horsepower from the Big Compounding Engine (BCE)

My Own Advisor: Dividend horsepower from the Big Compounding Engine (BCE)

Here's an interesting post about reinvesting the earned dividends from a top canadian stock. The stock choice is interesting and the the concept of DRIPS and reinvesting earned dividends is worthy of a post.

What do you feel is another top Canadian DRIP to monitor?

Rbc royal bank and credit lines

So I have a basic personal finance tip that everyone should follow. I recently went to close on a mortgage and the real estate lawyer informed me that.rbc had a lien against my property. The scary part is that I had no financial product from rbc.

Long story short -- rbc paid my lunch expenses during my wait and are working with the head office to rectify the error with the line of credit mortgage incorrectly being applied against my property. It was apparently in place for 2 years and I never once received a statement. Scary.

Everyone should consider getting a thorough credit review done every 1 to 2 years in case of identity theft or even e-errors during these times of e-business.

Has anyone else had a similar scary financial story?
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25% Off American Apparel Online

25% Off American Apparel Online

Here is a great money savings idea that is valid anytime!

If provocative advertising featuring young girls in '80s-inspired gold lame leotards does it for you when it comes to shopping for clothes, be sure to jot down this coupon code for American Apparel: p4555-by46578.

It will get you a nice 25 per cent discount on any order from AA's Canadian online store, and the code is valid until August 31.

Alternatively, if you spend more than $100 online, you can select one of these free gifts (don't ask me what the "BUTT Calendar" is).

And another bonus: there's free shipping on all orders over $75.

8.05.2010

Top Canadian Personal Finance Blogs

I have been working on this personal finance blog for a few years and I have spent the last few months trying to increase its content. Once you get started in trying to provide relevant personal finance content with a Canadian theme then you'll quickly come across fellow bloggers that are doing the same. Here is my list of the top Canadian personal finance blogs.

Your comments and suggestions are welcome if you believe that any other blogs should be noted.

MillionDollarJourney.com
InvestItWisely.com
CanadianCapitalist.com
CanadianFinanceBlog.com
YoungAndThrifty.ca
CanajunFinances.com

The Passive Income Earner: Is your principal residence your retirement plan?

The Passive Income Earner: Is your principal residence your retirement plan?

I'm a believer in the power of leveraging in order to gain passive income -- however, any landlord will tell you that owning an investment property is far from being passive! If you are able to find an investment property that can sustain a positive monthly cash flow then you're on your way to a solid investment plan that could lead into your retirement years.

Save More Money with Indexed Funds

Save More Money with Indexed Funds

informed consent

Consent given with full knowledge of the risks involved, probable consequences, and the alternatives. In medical treatment requiring invasive (and possibly life threatening) procedures, a doctor or healthcare provider must disclose sufficient information to the patient for him or her (or his or her guardian) to give an informed consent. What constitutes 'sufficient information' varies with the jurisdiction. In general, the amount of information called for in the US is higher than that in the UK.

yeilds

Differences in the yields of different securities, commonly used to compare bonds with different maturities and credit ratings. As a general rule, bonds with longer maturities and lower credit ratings generate larger yields, and bonds with shorter maturities and lower high credit ratings generate smaller yields.

8.04.2010

Fixed vs variable

We are pleased to introduce Brian Mason as a guest blogger. Brian is a mortgage broker in Ottawa with mortgagebrokers.com. We will be providing a more detailed of Brian in the coming days.


Friends, 

The most frequent question I hear from clients and colleagues is what type of rate is best...FIXED or VARIABLE ?!? Its a great question and one that I wish I had an absolute answer for.  Historically the variable rate mortgages outperform the fixed rate in terms of interest saved for the client over the term of their payments.  As a result of the record setting low interest rates we have enjoyed as of late I have been an advocate for taking a variable rate and pumping up the payments to the fixed rate in order to pay more principle, avoid unnecessary interest and increase the equity in the home.  Recently however with the bond yields falling and the fixed rates doing the same (5yr fixed for 3.99%!!) the locked in rate is becoming a more and more attractive option for those customers who are a little more risk adverse. Please take a look at this article from the Financial Post which helps illustrate the point.  Again, there is no right or wrong answer here but rather the opportunity to educate the client on their options and make them feel as comfortable as possible with their choice.http://www.financialpost.com/news/Variable+rate+longer/3329442/story.html#ixzz0uwQpMuYU 
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