The following text may have been generated by Optical Character Recognition, with varying degrees of accuracy. Reader beware!

- -- - -- Sweetheart Values «nda»t 14 Karat Diamond Stud Earrings from k s 49.0(Ui /|V 'toond He, Earrings Re s. $210 -x __ 10 Karat X F# Mini Diamond Compare at $59.95 Limited Quantity GOLD CHAINS 8-Diamond X Double-frame 1 10 Karat Pendant with] . Durable Curb Chain j 6-Diamond Double-frame 10 Karat Earring: Compare at $199.00 W Your Choice Î99.00 Tax planning strategies for U.S. residency vs. Canadian The Independent, Canadian Statesman Weekender, Bowmanville, Saturday, February 12,1994 17 By Ian Riehl, CA (MC)--IV s a good news-bad news situation for the hundreds of thousands thousands of Canadian "snowbirds" who migrate south to the sun each MONEYfARE winter. As a result of Ontario's recently tightened health care rules, coupled coupled with soaring medical costs in the U.S., out of country travel health insurance costs have also sky rocketed. That's the bad news. The good news is that Canadian tax law allows taxpayers (including (including snowbirds) to claim certain credits against their income tax for medical expenses. Fortunately, health insurance premiums qualify as allowable expenses. This means that about 27 per cent of all such expenses overand above 3 per cent of net income could be claimed as a reduction in taxes owing. So supposing your net income for the year is $30,000, then medical expenses in excess of $900 (3 per cent of $30,000) would be eligible. eligible. In this case, if your medical expenses expenses in the U.S. amounted to $400, and your travel health insurance insurance premiums were $1,500 (by no means unusual) for a total of $1,900, then you could claim a credit of 27% x ($1,900 - $900) = $270. Not a huge amount-- but it helps. For many retired Canadians who spend, or plan on spending, a significant significant amount of time in the U.S. -- or may actually own a second ' homethere*-- these't'OstsWüId pose a real problem. There are rules under the U.S. Internal Revenue Code which can result in a Canadian being deemed to be a U.S. "tax resident" at the same time he or she is also a Canadian Canadian tax resident. In this case "tax resident" has nothing whatever to do with citizenship, so Canadian citizenship is never in jeopardy. But it's a tricky situation. So much so that many snowbirds seek professional professional advice on how to avoid the U.S. residency rules, and have taken corrective steps to avoid being being U.S. tax residents. However, serious consideration should be given to giving up one's Canadian tax residency and becoming becoming a U.S. tax resident There are certain advantages to such a move. Currently U.S. taxes are substantially substantially lower than Canadian rates, particularly in states such as Florida which don't levy personal income Quality Body Work Quality Painting FREE ESTIMATES ON BOTH INSURANCE AND NON-INSURANCE WORK Open 5 Days a Week Monday through Friday caw AN PONTIAC-- BUICK LTD., BOWMANVILLE -- ONT. 166 King Street East Telephone 623-3396 sikkens 1 Transparent Interior Finishes , cetol TS Interior Satin sikkens Cvtol IS llttviim sikkens (VlolUV Cetol UV Interior m !sa available at " CENTRALPAINT & WALLPAPER 295 Ritson Rd. S. Oshawa 434-3939 Regional Chairman Roasted by Liberal Party Colleagues Politicians, Liberal Party members and friends from across the Durham Region and beyond gathered last week to salute Regional Chairman Gary Herrema. Mr. Herrema was the guest of honor at a roast held February 3 at the Sikorski Hall in Oshawa. The roast was sponsored by the provincial Liberal associations associations in Durham Region. In the above photo, Oshawa lawyer Terry Kelly takes his turn at the podium. taxes. (In some cases overall U.S. tax rates are one-half of Canadian.) There are also several tax planning Strategies available to further reduce reduce taxes on relinquishing Canadian Canadian tax residency. It may be possible possible to completely eliminate tax altogether on certain types of investment investment income. U. S. tax laws also permit certain deductions (like realty taxes and home mortgage interest) in computing computing taxable income that are just not available in Canada, which would also further reduce the effective effective rate of tax. But it all depends on how much you want to trade for the pleasure of living in a warm climate for four or five months a year. Moneycare is general financial advice by Canada's chartered accountants. Ian Riehl is managing managing partner of Riehl & Associates Associates with a special interest in tax and financial services. COMMUNITY LIAISON GROUP SITING TASK FORCE Low-Level Radioactive Waste Management GROUPE DE LIAISON COMMUNAUTAIRE GROUPE DE TRAVAIL Choix d'un site de gestion des déchets faiblement radioactifs The Clarington Technical Working Group - Remedial Action Plan (Dig and Move Committee) The Technical Working Group (Clarington) meets every Tuesday evening at Time: 7:00 p.m. Location: Clarington Community Liaison Resource Centre, Village of Newcastle Consultant: Dr. David DuBois, Golçler Assoc. Ltd. This meeting is called to discuss the draft discussion document. This draft discussion document has been prepared to assist the TWG (RAP) in selecting appropriate remedial technologies for the decommissioning of the Port Granby Waste Management Facility. ■ Ihhhh ; . ■ . ■ :Oi. ) Your Family Jewellers Since 1945 39 King St. W. Bowmanville Telephone 623-5747 Free Engraving - Free Gift Wrapping