Most people like to pay less tax on their investment return, if they can. Here are three common ways:
- Buy sheltered investments.
- Use the dividend income exemption.
- Apply net losses to reduce tax on unsheltered capital gains. Learn more now
A word of caution
Be wary of seminars that offer you an opportunity to pay less tax or "maximize tax flow." These may be associated with specific products said to provide you with a tax break.
Unfortunately, tax breaks that sound "too good to be true" often are. In some cases, investors are audited years later only to find that they could be assessed for additional taxes, interest, or penalties by the Canada Revenue Agency. For more information, read this Ontario Securities Commission (OSC) Investor Alert.
Remember: Everyone wants to pay less tax.
Don’t get fooled into doing something that is not in your best interest. If in doubt, get expert advice.
Content in this section is provided in partnership with the Investor Education Fund, a non-profit organization promoting financial literacy to Canadians. To find out more go to GetSmarterAboutMoney.ca.