Financial Solution Link, Insurance

What's new for 2007

Here are the major changes for tax year 2007 that will affect investors as they prepare their annual returns this spring. Be sure to check for other tax changes that affect families and businesses at CRA website.

Retired couples can split pension income
Pensioners can allocate up to half of their pension income to their spouse or common-law partner. This allows spouses to equalize their incomes for tax purposes, which can often generate significant tax savings.

RRSP contribution limit increases
The maximum RRSP contribution limit is $19,000 for 2007, up $1,000 from last year.

Two more years for RRSP contributions
Seniors can now convert their RRSPs to RRIFs at age 71 instead of 69. For RRSPs already converted into RRIFs, minimum withdrawal rules have been waived for people turning 70 or 71 in 2007.

More investments qualify for RRSPs
RRSPs can now hold any equity security listed on a designated stock exchange, as well as any investment grade debt obligation (bond, debenture, etc.) that is part of a minimum $25 million issuance.

More saving power for Registered Education Savings Plans
The $4,000 annual contribution limit has been eliminated, and the lifetime contribution limit has been increased from $42,000 to $50,000.

New credits for families with children
Take advantage of the new Children’s Fitness Tax Credit, as well as a new Childcare Tax Credit.

Breaks for lower-income Canadians
The tax rate for the lowest bracket has reduced from 15.5% to 15%. Also, the basic Federal personal amount has risen to $9,600. We suggest you check with a tax professional to see if any of these changes apply to you.

This site contains general information and is not intended to give financial or other professional or legal advice. This site is subject to update and modification without any notice. Financial Solutions Link Corp. does not guarantee the accuracy, completeness or authenticity of this site’s content.