Once you max out your TFSA, this youtube video is so important to watch.
@geggs12 жыл бұрын
I’ve never used RRSP’s I’m on track to earn $140,000 this year so I’m gonna drop $60,000 into RRSP’s so I can hopefully get around $25,000 on my tax return. Then I’ll use that $25,000 to fund my TFSA. I’ll do the same thing again in 12 months time.
@PassiveIncomeInvesting2 жыл бұрын
SMART, you will understand the power of the RRSP right away
@Mewzyc Жыл бұрын
What's the reason y u never used your RRSP?
@geggs1 Жыл бұрын
@@Mewzyc Well, over the years I spent most of my money on Woman, drugs, gambling and Alcohol. The rest I just waisted.
@Mewzyc Жыл бұрын
@@geggs1 makes sense. Ya TSFA and RRSP wouldn't make sense for those over regular savings/chequeing account.
@PassiveIncomeInvesting Жыл бұрын
😂😂👍
@donlinton3760 Жыл бұрын
Leaving Quebec just before retirement you need to check the RRIF tax rates, they are twice as much in all other provinces.
@georgebigalow977 Жыл бұрын
That would mean you would need to make it way, way past 71 years old.
@sebastienharbec58542 жыл бұрын
Thanks Adrian for the video, also from Quebec.I think I'm going to start looking for a shed in Ontario :p
@PassiveIncomeInvesting2 жыл бұрын
A shed is probably all you’ll be able to afford right now ! lol kidding …
@brianmcgrath5977 Жыл бұрын
This is a great video, thanks. Along these lines ,I just maxed the tfsa now what. Love a vid on this topic.
@PassiveIncomeInvesting Жыл бұрын
Rrsp and cash !
@farhancpa2 жыл бұрын
I have learnt so much from you. You are a very smart guy, I wish I had discovered you 20 years.ago , when I didn't have a clue about investing.
@justanotherchannel60972 жыл бұрын
Love the Ontario example 👍
@elmolulu1234 Жыл бұрын
Hi Adrian, thanks so much for this video. It cleared up the tax question I had before. A question on the RRSP contribution, rich dad poor dad don’t suggest people to continue to 401k which is the RRSP equivalent in the States. Reason being these are just a tax deferring tool. When you reach 71 in Canada you have to convert to RRIF. When you withdraw the required amount from it, you will get taxed according to the tax brackets at that time. So RRSP is only good for people who believe they’ll make less money in retirement. If you make more and more money from passive income, you’ll actually get taxed more when you retire. Is this thinking right? I could very well overlooked some key points. What are your thoughts on this?
@jacquesfournier46162 жыл бұрын
Excellent video! I did not know that there was such an "horribilis" difference between Ontario and Quebec! If you give me permission, for those living in Quebec, there is a site giving very well done information on taxes, for different type of people: maried, single, over 70, under 60, etc...etc...but it is in French....the tables are in $ 😁
@PassiveIncomeInvesting2 жыл бұрын
yes QC is terrible when it comes to taxes (among st other things ) :)
@ali_ginga Жыл бұрын
Thanks for the tax video Adrian, I *really* appreciate how you present this information in an organized, easy to digest format.
@PassiveIncomeInvesting Жыл бұрын
A1 !
@hasshah12762 жыл бұрын
Thx Adrian for all the great help you give generously.
@PassiveIncomeInvesting2 жыл бұрын
My pleasure!
@xtasktaste05 ай бұрын
Exactly what I wanted to know. Thank you for a very informative video.
@joaniestraw50752 жыл бұрын
Appreciate the Canadian slant, great breakdown. Thanks for the info!
@dang13432 жыл бұрын
Love the information thank you so much! However... I have a few GIC's. I feel ashamed now. :/ lol
@Biscuit18738Ай бұрын
i have 500 shares. i have no intention on selling, just debating averaging down a bit if it drops more.
@dq74102 жыл бұрын
You’re the best man. Was just wondering about this. Thanks Adrian.
@georgebigalow977 Жыл бұрын
I am one of those ppl in Quebec, This video showed me just how much more it costs to live here. Just thoses darn houses in Ont. are too $$$
@PassiveIncomeInvesting Жыл бұрын
time to move to Nunavut! lol
@juvidonvevo45852 жыл бұрын
Thanks a lot brother, appreciate the videos.👍🏾
@dwaynecunningham21647 ай бұрын
Thanks dude! More interesting than I thought it was going to be!
@PassiveIncomeInvesting7 ай бұрын
lol its the topic i hate the most
@lisalisaroserose Жыл бұрын
Hi... So what am I missing here: With income tax levels, when you reach a higher tax bracket, it doesn't apply all the way down. You still pay the lower tax rate on the portion of your income under the first bracket, the higher tax rate only applies to the amount above the lower bracket. I am assuming that it is the same here? Does one pay the lower rate on the portion of dividends that fall within that bracket, one doesn't suddenly pay the higher bracket tax rate all the way down? Because if that is the case, then it would have to be an astronomical income before capital gains became more desirable than eligible dividends? Just because a bit of your income has reached the higher bracket, so cap gains are better for that bit, all the rest of your dividends are still assessed in each of the lower tax brackets... So you'd need mad cap gains advantages to offset that... What am I missing? Thank you
@jordanthomson8675 Жыл бұрын
My tfsa is almost full and will be using cash account soon
@ajfresco2 жыл бұрын
Thanks Adrian for the content! If you have a chance please take in consideration the 2nd Vote Option as well "Income Investing vs Growth Investing if you DON'T NEED the INCOME"
@PassiveIncomeInvesting2 жыл бұрын
of course! its on the "list" :)
@KawarthaTeamAlleyandJesse19 күн бұрын
Quick question… for taxes on eligible dividends within a non-register account; the tax percentage paid after the gross up method applied… is it based on household income, Or individual income? Thanks! Obviously not tax advice..
@randalxu48892 жыл бұрын
Thanks Adrian! I have been waiting for this video. After became a PII, I finally have gains at the end of the year. So, naturally need to understand how to maximize tax efficiency. 😄 Nice video!
@PassiveIncomeInvesting2 жыл бұрын
:) glad to help out. Stay Passive
@nicsparrow57132 жыл бұрын
Thanks - great video. Really informative
@dacxem2 жыл бұрын
Great content, glad I'm in BC :)
@25Soupy Жыл бұрын
Me too!
@joefalcone4762 Жыл бұрын
Great information. Thanks.
@marioiaboni15482 жыл бұрын
Adrian.. I was hoping that you would tough base on US "Interest , Dividends and Capital Gains" received in a Canadian Cash (non registered) account. I hold CLM, QYLD, RA, RIV and a few more in my account to generate income that I use while Snow Birding in Florida. Can you comment on which is more efficient for us Canadians when filling our Income Tax.... thanks and keep making those helpful content videos
@PassiveIncomeInvesting2 жыл бұрын
That should all be foreign income , but the roc would be roc . The most tax efficient thing is NOT having us listed funds anywhere besides a rrsp or lira
@gpjoker122 жыл бұрын
Loved this video !!! also from QC.... gross...
@PassiveIncomeInvesting2 жыл бұрын
lol i know, go to Ontario! Hawksberry is like 30 mins from border
@knightday1973 Жыл бұрын
Me too arggh...
@amynmerchant13262 жыл бұрын
Awesome tips. Thanks Adrian.
@PassiveIncomeInvesting2 жыл бұрын
Glad it was helpful!
@tonytraniello46452 жыл бұрын
Awesome video Adrian, definitely clarified things that was questionable in my mind. Thank you so much
@PassiveIncomeInvesting2 жыл бұрын
My pleasure!
@redhwanalfredo43122 жыл бұрын
Thank you for this video!!
@richardli55302 жыл бұрын
RRSP only makes sense for high income. I am using it to limit my marginal tax to about 43%. TFSA is for everyone.
@PassiveIncomeInvesting2 жыл бұрын
not necessarily. it can offset taxes even at lower brackets. i contributed even when I was making less than 40k/ year back in the day and do not regret it
@richardli55302 жыл бұрын
@@PassiveIncomeInvesting My parents did. They regretted making RRSP controbutions while making low wages. They would have been better off collecting from government. Mind you, they never made high wage in this country as new immigrants. I am making sure that the lesson is not lost on me. Now that I am looking at retirement in the next decade, I am in position to put 50k plus per year into RRSP to limit my tax liabilities. No, don't feel right about government taking 50% or more.
@danderson50843 ай бұрын
What means negative % tax on dividends?
@lanaturopathefrugale2 жыл бұрын
So glad to live in Montréal^^ #not :)
@neilmac47302 жыл бұрын
Thanks Adriano, you've changed my life for the better since we talked. My dividends will add up to 88,000 for the year and I live in BC. Good news since I'll be able to income share with my wife. Cheers!
@PassiveIncomeInvesting2 жыл бұрын
Enjoy the easy 💵💰brother
@fabricadecuero49442 жыл бұрын
Could talk about *the merge* of ETHY? What’s gonna happen to the stock?
@bishwajitbarua7033 Жыл бұрын
Could you please make more video canadian/us tax efficient stock for margin/cash account ?
@PassiveIncomeInvesting Жыл бұрын
i think i said all there is to know about cash account taxes in this video
@patswayze2493 Жыл бұрын
What does cra categorize the yield payments of HYLD or something similar?
@Sk3pT1kal822 жыл бұрын
What is the difference between a T3 tax doc and a T5? Thank you 😊
@PassiveIncomeInvesting2 жыл бұрын
T5 is only eligible dividends T3 is for funds that have multiple sources of income
@Sk3pT1kal822 жыл бұрын
@@PassiveIncomeInvesting 💡 I see! Thank you for clarifying
@humbleloonie Жыл бұрын
As always, thank you for the value you create for the community. Much appreciated, Adrian. Could you clarify my concern? Let's say you have an annual income of 50K. 48K came from capital gains, and 2K from dividends. Does it mean I'm being taxed 11.43% on the 2K dividends? Thank you in advance.
@PassiveIncomeInvesting Жыл бұрын
If you are in the tax bracket and province associated with that rate : yes
@brianmcgrath59772 жыл бұрын
When do you see ffn paying again? Thx for the great work
@PassiveIncomeInvesting2 жыл бұрын
When fear is over and the financial stocks inside recover
@brianmcgrath59772 жыл бұрын
@@PassiveIncomeInvesting Thank you
@katalystc12682 жыл бұрын
Adrian excellent video! Question. I noticed capital gains has different rates in taxation on the chart? I thought it was 50% for all gains period?
@PassiveIncomeInvesting2 жыл бұрын
only 50% is taxed but the rest is taxed according to your bracket and province as shown. the lower the bracket the lower overall taxes paid.
@katalystc12682 жыл бұрын
@@PassiveIncomeInvesting thanks!
@jordanthomson8675 Жыл бұрын
What would reits be considered interest or capital gains the reits have distributions
@francesb-p24414 ай бұрын
Has the information changed recently?
@sgill4833 Жыл бұрын
Let's say you have 50k in capital gains and 50k in dividends. Say you contribute 50k to your rrsp. Would you be taxed at the cg tax rate or dividends tax rate?
@PassiveIncomeInvesting Жыл бұрын
It’s an “overall thing “ with the rrsp . Best to ask an accountant.
@youngmillionaire710811 ай бұрын
What about US dividends and ETF?
@vg76692 жыл бұрын
Nice informative video. Thanks. New to PIII. On the tax chart, 2022 taxable income (first column), is that only salary, rent etc. And not including any returns from the PIII?
@PassiveIncomeInvesting2 жыл бұрын
That’s salary and interest income ( it’s your marginal tax rate )
@vicfontaine51302 жыл бұрын
Great video, how do preferred shares from split funds get taxed in a cash account
@PassiveIncomeInvesting2 жыл бұрын
check their website its all there. typically its all e. dividends
@sutts12832 жыл бұрын
Thank you….Hi5
@Gillesgip Жыл бұрын
Great video, ive made quite of few financial changes based on the information you've provided. Big one retirement! Question thought. I to have a large portion of my non reg trading account with hyld. I can't find any documents as to what portion of the distribution is capital gains and dividends. Dividends outside of canada are taxed similar to GIC's. Capital gains are the same. We will only find out in February when we receive our t3's. My advisor said that hdiv might be better tax wise than hyld. Any thoughts?
@PassiveIncomeInvesting Жыл бұрын
yes its possible but it should be a small difference probably. It will be mostly capital gains i think. HDIV does have more Canadian focused ETFs so there could be eligible dividends, you can find HDIVs 2021 tax info on their site. 81% was capital gains, 15% was e. dividends and the rest F. I.
@L3G0FaN2 жыл бұрын
Thanks for the video Adrian. One thing I’m wondering is when you start extracting/using your passive income, which account should you take it out of first?
@PassiveIncomeInvesting2 жыл бұрын
I would say there’s no right or wrong answer to this question . Up to you
@nathanyuki Жыл бұрын
maybe use your cash account because in your tfsa you can just reinvest your dividends tax free. but i’m new so that may not be the smartest answer!
@L3G0FaN Жыл бұрын
@@nathanyuki but if you take your dividends out of your TFSA you can increase the room of your TFSA for the next year🤔
@schoombeeerasmus5072 жыл бұрын
Foreign income gets taxed the same as regular income according to your marginal tax rate, in a non registered(cash) account. So, based on that principle, does foreign income contribute to your rrsp room?
@PassiveIncomeInvesting2 жыл бұрын
No
@jordanthomson8675 Жыл бұрын
Hi I have a question I am confused in a cash account does the money I invest in the account get taxed too or just the dividends Example I invested 10k into TD in cash account and that the investment produces $35 quarterly and $140 annually Would the 10 k get get taxed or the $140 annual dividend Thanks
@tgy1194 ай бұрын
You get taxed on the gains, the dividends in your case.
@tfitzy63592 жыл бұрын
Great Video! I watch your videos every time you put one out.. you said that one of the tips to lower your tax bracket is to contribute to your RRSP for Canadians. If you contribute say 60,000 and your income was 50,000. would the deduction be 50,0000. and can the other 10,000 be forwarded to the next year. or do you just lose the rest .I dont know if Im explaining this right. can you forward any unused amount on your next years taxes .if your contribute more than your actual income that year. Dont really know how this works.
@PassiveIncomeInvesting2 жыл бұрын
good questions, i know 50k would be deducted but im not sure about that extra 10k
@devocracy10892 жыл бұрын
You can definitely defer the other 10,000 to the next taxable year. There are diminishing returns though, and deferring your contribution to a year where you might be making say 80,000 would be a better use of that contribution. In your scenario it likely wouldn't make sense to deduct the full $50,000, you would probably only contribute enough to drop yourself into a lower tax bracket and carry the rest forward (I'm no expert though)
@tfitzy63592 жыл бұрын
@@devocracy1089 Great! Thanks!
@tfitzy63592 жыл бұрын
@@PassiveIncomeInvesting ok thanks
@philm12192 жыл бұрын
What about QYLD in a non reg account? Is the foreign ROC considered ROC in canada or is it fully taxable like foreign income?
@PassiveIncomeInvesting2 жыл бұрын
Roc is roc . That I can confirm
@jordanthomson8675 Жыл бұрын
What category would a REIT be under maybe capital gains or dividends
@PassiveIncomeInvesting Жыл бұрын
it can vary, all tax info on the ETF providers website
@jordanthomson8675 Жыл бұрын
It is not an etf the company is called smart centre real estate
@florendogomezcasuga7043 Жыл бұрын
Bc tax eligible dividends.
@CitizenofZetaReticuli Жыл бұрын
So a chequings account at the bank is considered a non-registered account?
@PassiveIncomeInvesting Жыл бұрын
no, that's a bank account. im talking about investing accounts, not bank accounts
@Fm-ho8kc2 жыл бұрын
Hi Adrian. Thanks a lot for your channel. Learning a lot from you. Im in debate now. Need your opinion. I have about $40k available right now and thinking what to do. One option is to invest in these income funds or to put as downpayment to get a condo and rent it out. What do you think will be better way to do. Im in Canada. Thanks
@PassiveIncomeInvesting2 жыл бұрын
Hard question! Both good options but the condo thing can be a lot more work . Also condo prices should drop in the coming year . I would do stocks for sure
@Fm-ho8kc2 жыл бұрын
@@PassiveIncomeInvesting thanks man! appreciate the reply!
@Mewzyc Жыл бұрын
If u watched his older videos, he sold his condo and rented instead and used the money to invest in passive income.
@ranj99292 жыл бұрын
Good video. Informative. Who is responsible for calculating the dividend gross up on eligible dividends? Is this already factored in the T3 numbers, or would the accountant calculate this? Would the accountant automatically know this needs to be done to receive the dividend tax credit?
@Whatisthisstupidfinghandle2 жыл бұрын
The numbers are the the correct boxes so when you put them into the tax program it does it for you.
@guilhermecolaneri94072 жыл бұрын
Your broker will provide the statements
@PassiveIncomeInvesting2 жыл бұрын
no need to do anything on your part. its done automatically by your accountant or tax software
@MegsCarpentry-lovedogs2 жыл бұрын
The gross up situation is a Complicated math calculation. I studied how it was done and...well, basically it is super complicated. Fortunately we do not have to do it and it is calculated by the software you use or the software of the accountant or if you do it using the very old fashion way by the CRA paper format. Trust me, its complicated! 😳😐
@nobodyatdrivingseat2 жыл бұрын
Hello Adrian Which Broker (outside of EU) do you recommend for European citizen living in EU ? I want to invest in EEUU & CAD ETF but unfortunally I could not find anyone reliable. Btw, I can't open a Questrade account from EU
@PassiveIncomeInvesting2 жыл бұрын
Not sure … try interactive broker
@nobodyatdrivingseat2 жыл бұрын
@@PassiveIncomeInvesting thanks for replying. Interactive brokers not too. I used DeGiro and Xtb without luck too.
@KOTNEmpire2 жыл бұрын
Doesn't ROC get taxed as interest after the ACB hits 0
@PassiveIncomeInvesting2 жыл бұрын
no, capital gains
@dannynip2 жыл бұрын
What about Foreign Income? Is it taxed at full marginal rate?
@MegsCarpentry-lovedogs2 жыл бұрын
Google your question and it will be answered in detail.
@PassiveIncomeInvesting2 жыл бұрын
Pretty much . There is a tax credit but it’s pretty small . I would put it in that category
@sabrina74552 жыл бұрын
Is EIT taxable as capital gains or as interest income??
@PassiveIncomeInvesting2 жыл бұрын
Go look it up like I discussed or watch my tax video
@beauchampfrancois151 Жыл бұрын
Can I get an address in Ontario someone? 😀
@SimonStormFrigon2 жыл бұрын
Great Video once again Adrian, quick question... We reside in yes "La Belle Province" with high income and I've started mastering your passive dividends strategy last year. Now why is there difference of 9% between eligible and non-eligible dividends? What do you suggest for us quebecers... Many thanks again for your insight my friend
@PassiveIncomeInvesting2 жыл бұрын
I never saw non eligible dividends in any funds . I wouldn’t worry about it
@aaronhall57152 жыл бұрын
Do you have to apply for the dividend tax credit or is it automatically applied?
@matthewpekelny97612 жыл бұрын
You don't really apply for it, when you do your taxes there are some calculations you do to get the number you put on your tax return.
@aaronhall57152 жыл бұрын
@@matthewpekelny9761 beauty. Thanks!
@PassiveIncomeInvesting2 жыл бұрын
auto
@MegsCarpentry-lovedogs2 жыл бұрын
If you use a software you will see as you work through it that the dividend tax credit is already applied, thank goodness!👍💯. So is the pension tax credit, if you are retired, thank goodness again😊
@daysincatgmaildotcom Жыл бұрын
great info!! if you have maxed out TFSA and RRSP investment accounts does the Non Reg investments create more RRSP room?
@PassiveIncomeInvesting Жыл бұрын
nope only regular income does that, not investment income
@markgarside22622 жыл бұрын
Been trying to get a strait answer about usoi. It seems they pay out in coupons or inco.e from bonds so we definitely want this one in a registered account. Being that is not dividend it doesn't matter if it's in rrsp or tfsa because the 15% withholding tax is on dividends. Is that correct? It seems like a good one to have in the tfsa for sweet tax free income Thanks
@PassiveIncomeInvesting2 жыл бұрын
i have had conflicting reports about this so i cannot say for sure. Buy 1 share and let me know :)
@markgarside22622 жыл бұрын
Awesome Thanks. Rrsp account it is
@markgarside22622 жыл бұрын
I was looking at the history. It looks to me like the divy fluctuates but seems pretty good even at its lowest.
@carloscouto38322 жыл бұрын
Ive had USOI in my tfsa for a long time. They have never taken 15% witholding tax😊😊😊
@25Soupy Жыл бұрын
@@jimheifetz6117 I own USOI in my RRSP in August I was paid 17% yield and in Sept my yield was 24% which is after the reverse split. So not sure they lowered the monthly distribution? Unless that will show up next month (for month of October distributions).