Tax Tips¹

How much will you pay in income taxes over your working life? The Professional Financial Advisors at Bick Financial can help you reduce that amount!

Income Splitting

Income splitting involves transferring income that would otherwise be taxed at a higher tax rate to an individual with a lower marginal rate. There are several strategies to split income and the rules have changed as of the 2007 tax year! Talk to your Bick Financial Advisor to make sure you are taking advantage of all the income splitting strategies you can benefit from.

Capital Gains and Losses

If you sell an investment with a capital loss the same year in which you realize a capital gain, you can use the loss to offset part or all of the gain.

Investments

The type of income produced by the investments in your portfolio will affect how much tax you pay on that income. Return of Capital, Dividend Income and Capital Gains are taxed differently than interest income.

Mutual Funds²

Some mutual fund companies have established funds that are set up as a corporation and not as a traditional mutual funds. This structure allows investors to switch between different classes of shares without triggering any capital gains, since the transactions are not considered to be redemptions or purchases.

Make your Mortgage Tax Deductible³

Bick Financial Advisors have already helped many clients use this strategy to that will generate annual tax refunds, pay their mortgage off years sooner and build an investment portfolio all at the same time.

Gifts

It is possible to use alternative ways to transfer assets to your children or grandchildren and save taxes during your lifetime. Cash gifts are not usually subject to taxation, while coin collections, stocks, property and other assets may have income tax consequences.

¹This material is provided for general information purposes only and is not to be construed as investment or tax advice. Before acting on any of the above, please consult with a professional for investment or tax advice based upon your personal circumstances.