Tax benefits from RRSP also favour the rich

A recent study by the Canadian Centre for Policy Alternatives says 86 per cent of Canadian families would get absolutely no benefit from a proposed Conservative government income splitting plan.

It argues allowing higher-income family members to transfer part of their income to family members in lower tax brackets will only benefit a few wealthy families. At the same time, they say the nearly $5 billion in lost government revenue annually resulting from the plan will be compensated by the many.
While it’s a fact of life that tax breaks favour those who pay the most in taxes, if the CCPA is looking for a tax plan that benefits the rich they don’t need to go any further than the cherished registered retirement savings plan (RRSP).
Here’s what they would find: According to Statistics Canada the average Canadian annual pre-tax income is about $40,000. For the sake of argument, let’s say that average person scrimped and saved, and contributed $10,000 to his RRSP. Using tax tables provided by the Canada Revenue Agency, if he lived in Ontario he would roughly be in a 20 per cent tax bracket. That means he would avoid paying $2,000 in taxes.
Now, let’s say his rich uncle who made $140,000 also contributed $10,000 to an RRSP account. In Ontario he would roughly be in 39 per cent tax bracket – reaping a tax savings of $3,900.
That’s not the only advantage the rich uncle has over his poor nephew. If the uncle plays it smart and limits his overall contributions until he retires he can restrict the amount of money he withdraws from his RRSP to a lower tax bracket. The nephew, on the other hand, will likely withdraw his savings in retirement at the same contribution rate.
TFSA: the great equalizer
The tax free savings account, on the other hand, is more democratic – to a point. Any gains on investment returns in a TFSA are not taxed regardless of your income.
However, in the future it will become more of a benefit to the rich as the contribution limit keeps rising. When it was introduced six years ago the limit was $5,000 but each year that limit is increased by the federal government. Right now Canadians are allowed to have as much as $31,000 total in their TFSAs, if they have never contributed before.
As the contribution limit grows, TFSAs will be a bigger drain on government coffers and those who can afford to put the most in their TFSAs will benefit the most.
When RRSPs and TFSAs are not enough
There are investment tax perks outside of the RRSP and TFSA. Gains on equities like stocks are only taxed at 50 per cent. If you lose money on some equities you can offset those losses against other gains.
Dividends from eligible Canadian companies are also subject to a tax credit.
But with so many RRSPs and TFSAs being underutilized you really have to wonder who really needs additional tax perks and why is a Federal government that claims to be committed to balancing the budget so eager to please them by allowing income splitting.
The maximum RRSP deduction for the 2013 tax year is $23,820 plus any unused contribution space from previous years. Add that to the $5,500 annual TFSA contribution limit and that’s close to $30,000 a year in tax perks.
A recent Sun Life Financial/Ipsos Reid poll found only 36 per cent of eligible Canadians even make contributions to their RRSPs. Another recent Bank of Montreal survey found the average RRSP contribution last year was only $4,670.
Recent statistics on TFSAs are hard to come by but the Federal government recently estimated only half of eligible Canadians even have a TFSA.
It seems that rich uncle has Ottawa’s ear.

Tax Benefits of Car Donation

If you donate a car to charity and itemize deductions on your income tax return, it may be possible to claim a deduction for your car donation.

In 2005, the IRS changed the laws related to tax deductibility of car donations because of exaggerated deductions based on inflated book values (book values tend to become less reliable as a vehicle ages). Under the new rules, the deductible amount of your vehicle donation is directly related to the selling price of your vehicle.

Donate a car and if it sells for less than $500 you can take a tax deduction equal to the 'fair market value' of your donation up to $500. Fair Market Value is loosely explained as the "Blue Book" or "Guide Book" value of your vehicle. See our car donation to charity help links below for Kelley Blue Book, NADA Guides or Edmunds.

The charity you donate a car to is required by IRS to send to the donor a contemporaneous written acknowledgement (receipt) within 30 days of the vehicle sale. This receipt must include the following:

The gross selling price of the vehicle (if sold for greater than $500)
Year, Make, Model and VIN Information
A statement that the vehicle was sold at arm's length between two unrelated parties
And a statement that no goods or services were received in return for your contribution.*
*Keep in mind that companies that promise goods or services in return for your car donation are legally cutting into the amount that you can claim for a tax deduction for your charitable contribution.

TIPS TO MAXIMIZE YOUR CAR DONATION TAX DEDUCTION
Car Donation Wizard wants donors to know that donating a car to charity not only helps the organization fund worthwhile research and activities, but you also may be eligible to claim a tax deduction for your charitable contribution. Here are some car donation tax tips:

Make sure the charity is eligible to receive tax deductible contributions. The most common types of qualified organizations are section 501(c)(3) organizations, such as charitable, educational, or religious organizations. Visit IRS.gov to search for registered charities. Car Donation Wizard only works with esteemed, 501(c)(3) non-profit organizations.
Be sure that you get a receipt from the charity for your car donation. You must obtain a written acknowledgment from the charity if the total deduction you are claiming for a donated car is $250 or more. Car Donation Wizard mails a tax receipt for your records following the sale of your vehicle.
The IRS will only allow a deduction for the fair market value of the car. This can be found on the tax receipt mailed to you for your donation.
If the car is worth more than $500, the donor must complete Section A of IRS Form 8283 and attach it to their tax return.
If the car is worth $5,000 or more, an independent appraisal is necessary. The donor must also fill out Section B of IRS Form 8283. Take pictures of the car and save receipts for new tires or other upgrades to verify its value.
Always consult your tax adviser or the IRS for more information about how you can claim charitable deductions. The IRS can answer your tax questions and can provide tax forms, publications, and other reading materials for further assistance. IRS materials are accessible through the Internet at www.irs.gov, through telephone ordering at (800) 829-3676, and at IRS walk-in offices in many areas across the country.

DONATE A CAR IN CALIFORNIA CHARITY

Below we\'ve listed over two hundred of the related  charities which will receive automotive donations in California. Before you decide on the charity for your California automotive donation please browse through our commonly asked queries or search our charity information for different choices. gift to Charity is that the best option for vehicle donations in California, having been established in North California and supported California charities from its origination.

Based on our level of service and our commitment to the very best payouts to our charity partners, gift to charity has expanded  on the far side California automotive donations, to currently serve all fifty states.

We square measure a trusty name in automotive donations and still serve several charities in Northern California, la, city and across the nice state of California and beyond! gift your automotive to a CA charity or gift a automotive to at least one of our national charity partners.

Simple select a charity and once you square measure able to gift USAe our convenient on-line automotive donation kind or decision us fee at (866) 392-4483 to gift your automotive over the phone.

Donate car to charity California

Have you recently purchased a new car and are having problems with your old one? You don't know where to park them? Well, one good way of disposing these old vehicles is to donate them. The best place for car donation is the state of California.

Car donation in California is a famous alternative for those who have old vehicles. Car owners can donate their vehicles including vans, cars, boats and other types of vehicles to a charity of their choice. This is one good way of getting rid of an old useless vehicle. In addition, you are able to help those who are in need without bothering yourself about what to do with that car.

The vehicle does not need to be in very good condition to be donated. In fact, broken down cars may also be donated. These centers would tow the broken cars for free. They will then fix these and auction them for a profit. The money earned from the auction will be given to the charity of your own choice.

Another way of donating automobile is by giving it to a poor family. According to the research done by Surface Transportation Policy Project (STPP), a non-profit agency, 20 percent of the American poor families can not buy a car. They are spending 40.2 percent of their budget with transportation expenses. STPP conducts a study about transportation alternative choices of Americans.

There are advantages in donating your ride in California. In other states, you are required to have the original title in order to donate. This is not the case here. In fact, as long as you are the legal owner of the car, you can still donate. The Center for Car Donations would provide you with a duplicate title form to be signed. On the other hand, car donors are entitled to a tax deduction. This is in accordance with the new tax law of 2005. In some cases, you are given a free vacation for your act of charity.

Another benefit of donating car in California is the free towing services offered. You're not required to bring the car to the Center for Car Donations. They are ready to pick it up especially if it is not in good running condition anywhere within the state.

You simply follow steps in giving out your car. First, prepare the vehicle. While it is not necessary for the car to be in good running condition, it would still be good if you make sure that it is presentable enough. Simply clean it and make sure you have nothing of your personal belongings left inside.

You also need to prepare all the important documents like registration and insurance. If you don't have the title, the Center for Car donation would provide you with a duplicate title form. After gathering all the documents to be transferred, make an online search for car donation companies that would facilitate your car donation. Make sure that the company is valid before submitting all the documents. This would prevent you from falling victim of scams.

When the car is picked up, the company would give you a tax form. This is important for you to avail of tax deduction. Make sure to file a notice of release of liability to a local Department of Motor Vehicle (DMV). Ask the people who picked up your car on how to fill out the form. Lastly, inform your insurance company that you donated your car to charity. Do this on the day you release your car. This is important for them so they can discontinue the insurance coverage.

Federal student loan consolidation

In the United States both the Federal Family Education Loan Program (FFELP) and the Federal Direct Student Loan Program (FDLP) include consolidation loans that allow students to consolidate Stafford Loans, PLUS Loans, and Federal Perkins Loans into one single debt. This results in reduced monthly repayments and a longer term for the loan. Unlike the other loans, consolidation loans have a fixed interest rate for the life of the loan.

Consolidation loans have longer terms than other loans. Debtors can choose terms of 10–30 years. Although the monthly repayments are lower, the total amount paid over the term of the loan is higher than would be paid with other loans.The fixed interest rate is calculated as the the weighted average of the interest rates of the loans being consolidated, assigning relative weights according to the amounts borrowed, rounded up to the nearest 0.125%, and capped at 8.25%. Some features of the original consolidated loans, such as postgraduation grace periods and special forgiveness circumstances, are not carried over into the consolidation loan, and consolidation loans are not universally suitable for all debtors.

The Federal Loan Consolidation Program was created in 1986. In 1998, the United States Congress changed the interest rate to the aforementioned fixed rate weighted mean, effective February 1, 1999.

In 2005, the Government Accountability Office considered consolidating consolidation loans so that they were exclusively managed through the FDLP. Based on several assumptions about future variations in interest rates, the loan volume, the percentage of defaulters, cost estimates from the United States Department of Education, it concluded that while doing so would incur an additional cost of $46 million, caused by the higher administrative costs of the FDLP compared to the FFELP, this would be offset by a $3,100 million saving comprised in part of avoiding $2,500 million in subsidy costs

Here is time for talking about Refinancing

Refinancing refers to applying for a secured loan intended to replace an existing loan secured by the same assets. The most common consumer refinancing is for a home mortgage.Refinancing may be undertaken to reduce interest costs (by refinancing at a lower rate), to pay off other debts, to reduce one's periodic payment obligations (sometimes by taking a longer-term loan), to reduce risk (such as by refinancing from a variable-rate to a fixed-rate loan), and/or to liquidate some or all of the equity that has accumulated in real property during the tenure of ownership.

In essence, refinancing a mortgage or other type of loan can lower the monthly payments owed on the loan either by changing the loan to a lower interest rate, or by extending the period of loan, so as to spread the re-payment out over a long period of time. The money saved can be used to pay down the principal of the loan, thus further reducing payments. Alternately, refinancing can be used to transform available equity in one's house into ready cash, available for other purposes or expenses.

Another use of refinancing is to reduce the risk associated with an existing loan. Interest rates on adjustable-rate loans and mortgages shift up and down based on the movements of the various prime rates used to calculate them.

You can have a Risk.
Certain types of loans contain penalty clauses triggered by an early payment of the loan, either in its entirety or a specified portion. In addition, there are also closing and transaction fees typically associated with refinancing a loan or mortgage. In some cases, these fees may outweigh any savings generated through refinancing the loan itself. Typically, one should only consider refinancing if one stands to save a substantial amount of money from doing so, either in the short or long-term, or if there is a need to extend the loan in order to pay for unexpected costs such as medical expenses.

Points.....

Refinancing lenders often require an upfront payment of a certain percentage of the total loan amount as part of the process of refinancing debt. Typically, this amount is expressed in "points" (also sometimes called "premiums", with each "point" being equivalent to 1% of the total loan amount. Therefore, if the refinance option selected involves paying three points, then the borrower will need to pay 3% of the total loan amount upfront. Most refinancing lenders offer a variety of combinations points and interest rates. Paying more points typically allows one to get a lower interest rate than one would be capable of getting if one paid fewer or no points. Alternately, some lenders will offer to finance parts of the loan themselves, thus generating so-called "Negative points" (also called discounts).

The decision of whether or not to pay points, and how many points to pay, should be taken in consideration of the fact that with points, one tends to trade a higher upfront cost in exchange for a lower monthly premium later on. Points can be paid out of the cash saved by refinancing the loan in the first place.

Use Your Cards with Care to Protect Credit Rating

Use Your Cards with Care to Protect Credit Rating

Using credit wisely means:


* Paying your bills promptly

* Keeping a list of all your account numbers in case cards are lost or stolen

* Controlling your spending

* Paying more than the minimum amount due

* Keeping copies of your receipts and checking them against your monthly bill

* Guarding against card fraud and identity theft by cutting up your old cards and shredding statements and unwanted credit card offers

British Airways Visa® Signature Card

# 15,000 Bonus BA Miles after First Purchase

# $20 off Any British Airways Ticket Purchase Made Using the Card at www.britishairways.com/get20

# 2 BA Miles for Every $1 Spent on British Airways Purchases

# 1 BA Mile for Every $1 Spent on All Other Purchases

# No Limit To the BA Miles

# No pre-set spending limit

# 24-hour concierge service

# 100% protection against unauthorized use — even online

# Visa Signature privileges

Chase Cash Plus® Rewards Visa® Card

The Chase Cash Plus® Rewards Visa® Card, issued by Chase, is designed for those with very good credit who plan to take advantage of the cash reward program.

Through the reward program, cardholders earn five points for every dollar spent at grocery stores, gas stations, and drug stores, as well as one point for every $1 spent on all other purchases. After earning 5,000 points, cardholders can choose between a $50 check or a $50 gift certificate to leading merchants such as The Home Depot®, Best Buy, Pizza Hut®, and BLOCKBUSTER®. There is a maximum of 30,000 points that may be earned in one year, and points expire in three years.

The card has a reasonably low interest rate for purchases (for a reward card), no annual fee, and an attractive 0% APR introductory rate for up to twelve months, which can be applied toward purchases and balance transfers.

Finance charges applied use the "Two-Cycles Average Daily Balance" method, which is a more costly method in applying finance charges for those who occasionally carry a balance as compared to the "Average Daily Balance" method used by most card issuers.

The card provides platinum cardholder benefits including up to $500,000 in travel accident insurance, auto rental insurance, and various travel and emergency assistance services.

Therefore, those who plan on taking advantage of the reward program and plan to pay in full each month after the introductory rate expires (to avoid costly finance charges) will benefit most from what the Chase Cash Plus® Rewards Visa® Card has to offer.

Most Attractive Feature(s): No annual fee; 0% APR intro rate on purchases and balance transfers for up to twelve months; up to 5% cash back reward.
Least Attractive Feature(s): Uses "Two-Cycles Average Daily Balance" method when determining finance charges; higher APR for less qualifying applicants.

The Citi® Professional Card, issued by Citibank

The Citi® Professional Card, issued by Citibank, is designed for those with average credit who are looking to maintain and manage all of their personal and business related expenses with a credit card.



The card offers access to a free rewards program. Through the reward program, the cardholder receives one point for every dollar spent on general purchases and three points for every dollar spent at restaurants, gas stations, certain office supply merchants, and on auto rentals. Points can be redeemed for a variety of merchandise, air travel, and gift certificates. There is a yearly limit of 100,000 points, and points expire in three years.

Aside from the reward program, cardholders can expect access to a variety of platinum benefits that include up to $1,000,000 in travel accident insurance, auto rental insurance, and various travel and emergency assistance services.

The card offers cardholders the benefit of the Citi® Professional Card's online expense reporting tool, which allows cardholders to categorize card activity and generate as many individual, easy-to-read expense reports as they choose.

The card has no annual fee, an attractive 0% introductory rate for balance transfers for the first nine months of membership, and a reasonable interest rate for purchases and balance transfers. However, there is a minimum cap for cash advances; so no matter how low the Prime Rate falls (the APR is tied to the Prime Rate), the interest rate will not go below the minimum cap.

Learn Before Your Leap into a Debt and Bill Consolidation Loan

Regardless of the time of year there never seems to be enough money to go around. If it isn?t the holidays, it?s your niece?s birthday or mother?s day. Just having enough money to cover your bills is challenging enough. If this sounds familiar, take comfort in knowing that you?re not alone. One possible solution is to look into a debt and bill consolidation plan. Personal loans and credit cards most often have higher interest rates than a debt and bill consolidation loan. Basically, what you do is combine your debt and bills so that you have one monthly payment with a lower interest rate. There are a few things that you must get in order before applying for a debt and bill consolidation loan. First things first, gather all the statements for every bill and debt you want to consolidate. Start a list and include; payoff balance, the current payment installment, interest rate charged by each company and when you will get each debt paid off at the current rate. Obviously the needed debt and bill consolidation loan will be the sum of your debts. Before securing a loan, you will need to first consider which type fits your financial situation. You can apply for a personal loan, get a home equity loan or the popular choice of refinancing your mortgage. A comparison of each loan type will highlight their individual advantages and disadvantages. Do you want to prolong the payoff date of your home? Or maybe that doesn?t bother you if it means consolidating all of your bills and debts. Refinancing an existing mortgage or applying for a home equity loan will push the payoff date further, but you can sometimes get the most money with these loans. A major disadvantage to remember is that you are using your home as collateral. If you have a problem making payments on your new mortgage loan then you could lose your home. However, with one of these two loan types you do get an annual tax break. If using your home as collateral makes you uneasy, look into a personal loan. A personal loan for debt and bill consolidation will usually carry a higher interest rate than home equity or mortgage refinance loans. With a personal unsecured loan, the money loaned is based solely on your credit report. Depending on how much you need and what you?re comfortably securing your loan against, any of the three loan options may work. The desire to lower current payments and get out of debt can be overwhelming. But before committing, you?ll need to check a few key thing. With the list you made earlier double check that the interest rate is indeed lower than what you?re currently paying. Will the new loan be paid off sooner, in more time or about in equal time if you didn?t consolidate your loans? The best way to decide what you need to do is to get all your current financials together and then learn what options are available to you. You will learn more about your finances, how to better mange them and that may include a debt and bill consolidation loan. Get all of your credit and debt management information at http://www.goodcreditforyou.com

Debt Consolidation Loans Clear Up Your Debts

Multiple debts giving you sleepless nights? Are creditors breathing down your neck? Lighten up. If you are in a financial mess, debt consolidation loans are the best solution towards a debt-free life. If you go debt consolidation loan, all your bills will be put together into one lump sum payment. If you have already fallen behind on several loans, debt consolidation loans are a good way to pay off all your overdue accounts and start afresh with a single creditor.

Debt consolidation loans can be typified into secured and unsecured personal loans. If any property is placed as security then it is termed as secured debt consolidation loans. But then again there is always a threat of repossession in case you can not pay up on time. You can also go in for unsecured debt consolidation loan which does not require any collateral. But the interest rate is comparatively higher due to the risk factor associated with it. Unsecured debt consolidation loans are useful to generate immediate cash for a small period of time.

Debt consolidation loans may enable you to keep a track on your monthly payments. You can also make arrangements to pay a lower monthly payment. Debt consolidation loans are very effective in improving your credit rating. You will also be charged a comparatively lower interest rate if the loans are secured on any property. In the case of debt consolidation loan, your fixed monthly payment is calculated on the basis of the lowest payment amount accepted by your creditors. The amount is in turn distributed to other creditors with whom you have outstanding debts.

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Bad Credit Mortgage Refinancing: What You Need to Know About Sub Prime Mortgage Lenders

If you have been avoiding mortgage refinancing because of your credit, there are a number of reasons you should refinance despite your credit rating. Your mortgage is an excellent tool for rebuilding your credit, it can even save you money and free up cash in your budget. Here are several tips to help you decide if bad credit mortgage refinancing is right for you.

Mortgage refinancing has the potential to save you a lot of money if done correctly. Bad credit will not prevent you from refinancing your mortgage; however, how much you pay for the new loan depends on how much time you can afford to invest researching mortgage lenders and their loan programs.

Bad Credit Mortgage Refinancing: Consider Using a Mortgage Broker

If you don’t have the time to properly research bad credit mortgage loans, mortgage brokers can be excellent resources for finding specialty lenders. You have to watch the broker like a hawk to avoid overpaying and understand how the broker makes their money. With that said, mortgage brokers have connections with bad credit lenders and could easily place you with a competitive loan offer.

Bad Credit Mortgage Refinancing: Be Prepared to Pay More

When refinancing your mortgage with poor credit you can expect to pay a higher interest rate and possibly a point or two for mortgage refinancing. You can minimize this expense by comparison shopping for the best bad credit mortgage offer. When you compare loan offers it is important to compare all aspects of the loans and not get hung up solely on interest rates. Depending on how severe your credit problems are, you may need to seek bad credit mortgage refinancing from a Sub Prime mortgage lender. Sub Prime lenders specialize in mortgages for homeowners with credit problems. If you invest the time doing your homework and researching Sub Prime lenders, it is possible to qualify for rates and fees comparable to those paid by homeowners with good credit.

Bad Credit Mortgage Refinancing: What You Need to Do First

The first thing you should do before considering bad credit mortgage refinancing it to review your credit history for errors. Credit records are maintained by three separate reporting agencies and with dozens of creditors accessing your file throughout the year; these records are extremely error prone. Having errors in your credit reports will significantly reduce your credit score. Your credit score is one of the main factors lenders use when determining what interest rate you qualify for. If you find errors in your credit history you will need to dispute the error prior to refinancing.

You can learn more about bad credit mortgage refinancing without overpaying and making costly mistakes by registering for a free mortgage guidebook.

To get your free mortgage guidebook visit RefiAdvisor.com using the link below.

Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing - What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com.

Claim your free mortgage refinance information guide today at: http://www.refiadvisor.com

Bad Credit Mortgage Refinancing

How Do I Get Out Of Credit Card Debt?

Reduce Your Spending

It's always best if you start by reducing your spending. Cut any unnecessary expenses for the time being while you build up your savings account so you can pay for emergencies or fund any opportunities that might come up. Pay off any new credit-card expenses every month in full. Reducing your spending now will pay off in the future. Making little sacrifices you can save hundreds of dollars and use them to put money aside for emergencies and for repaying your debt.

Avoid Minimum Payments

Always pay more than the minimum payments on your cards. Most minimum payments barely cover the interest on your balance. If you can only afford the minimum payments, start with the card that has the highest interest rate and pay just a few dollars more every month. Over time, gradually increase the amount until you pay it off completely.

Highest Rate or Lowest Balance

If you can't afford to pay more money on your highest interest rate credit card, choose the one with the smallest balance and use any extra cash that comes your way to pay it. When you pay that card off, take the amount you've been paying on it and add it to the account with the highest balance. Continue this until you dig yourself out of debt.

Request a Home Equity Loan

Take out a home equity loan to pay off credit card debt. The interest rate on home equity loans is usually much lower than credit card rates and it is also tax deductible. This can be an extremely effective repayment method if you are disciplined. Be careful not to abuse the use of this loan because defaulting on your home equity loan could trigger the lenders ability to repossess the property. These loans can be as easy to abuse as credit cards, so you might as well try to exercise some control on your spending.

Balance Transfer Technique

A less aggressive way to pay off your debt is to transfer your higher rate credit card balances to your lower-rate credit cards. This works until you run out of lower-interest opportunities and close your old accounts so you aren't tempted to use them again. A lower interest rate will always let you use a bigger proportion of your income for repaying your debt.

Transferring credit card balances should be done with caution. You can take advantage of 0% APR and 0% Balance transfer promotions but you need to make sure to meet the necessary requirements and don’t exceed the promotional period. Otherwise, you can incur in more debt and fail to achieve your goal of reducing your credit card debt.