Riscario

Here are five ways to reduce income tax (after consulting your accountant or tax specialist)

1. defer taxes
   • e.g., with RRSPs and cash value life insurance
2. income splitting
   • from higher income earner to lower income spouse or family member
3. tax-preferred investments
   • capital gains have lower tax than dividends which have lower tax than interest
4. maximize credits and deductions
   • e.g., use all RRSP contribution room
5. tax-deductible loan interest
   • if borrowing to invest in nonregistered investments with a "reasonable expectation of profit" (e.g., mutual funds, real estate, segregated funds, your business, etc)
   • NOT when borrowing to invest in registered plans (RRSPs, RESPs) or cash value life insurance