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'Working. from -- en Ee its benefits Many people have chosen to market their skills and talents at home and are becoming self em) This is an increasing trend. The starting place is usually a spare room, den, basement or a : are benefits to having a. home-based business and being self employed, but there are also risk and frustration factors to consider. Isolation, long hours, irregular income, orderly record age. Many busi that initially start off part time eventually expand into a full g work from personal home enjoyment. On the positive side, .the advantages are lifestyle can be pouse and family members can be employed, of "home office costs would in ude a portion of mortgage stress is du more can be started ini time causing less of a financial burden, and there are some tax advantages Dh as deducting home office RRSPs make good sense for your financial future It is estimated from Wecent surveys that just one in three Canadians plan to ibute to an RRSP this year. This is monthly or weekly. This makes saving for your retirement less painful than having to write that one "big" cheque annually. urifortunate, as RRSPs not only 3. Contribute as much as you from proceeds of your tax refund. allow you to put a healthy are allowed. For 1993 you can Most banks offer preferred rates amount away for retirement, but contribute 18% of the previous for RRSP loans and can provide also generates an immediate tax years earned income, less repaymént alternatives. savings. Pension ustment, to a 6. If your spouse's retirement - It is widely believed that in maximum of $12,600. The more income will be less than your future years ours government oh contribute today, the more own, talk to your RRSP plan will not have the fi t ngs will be holder about the Frog. of capability to continue to pay Old in the future. litti i Age Pensions. When this 4. If you have not contributed "Spousal" is Ad This will happens, what will many your maximum in previous years minimize your tax upon retiring Canadians do to and you have funds available, retirement. maintain an adequate living utilize the "Carry Forward" The most important point to standard? provision to capitalize on the remember is that if your are not Those who have not made ding featu ble imizing your RR financial provision for their through RRSP investing. contribution annually, you are retirement will find the "Golden If you are uncertain of "Your paying more taxes than you have Years" somewhat tarnished. contribution limit", you should to, and you are robbing yourself . To many Canadians, the refer to your Notice of and your spouse of a comfortable phrases "Retirement Planning" Assessment received from retirement. and "Tax Planning" sound very complex. In fact they should not be. The cornerstone of "Retirement Planning" is capitalizing on your RRSP savings. Your banker of Financial Adviser can explain how simple this really is. By deferring your RRSP contributions "you are only putting off the opportunity of a comfortable retirement. For many, retirement can come a lot earlier than planned, if indeed they have planned at all. Following is a checklist to start you on your RRSP planning. 1. Don't procrastinate - if you have not contributed for 1993, do it now. The sooner you start, the more your money will compound. 2. If you have the funds, purchase your 1994 RRSP now. Why lose a year's compounding? If you do not have the cash, consider setting up an automatic transfer from your bank account. This can be arranged either return. » 5. If you don't have cash available, consider taking out a term loan which you can repay Revenue Canada which you would have received following submission of your 1992 tax (Laurentian Bank, Port Perry) 34 Water Street, Port Perry, Ontario (9L 1)2 985-8471 PERSONAL ATTENTION TO ALL OF FORDER - INSURANCE BROKERS INC. YOUR GENERAL INSURANCE NEEDS PARKS LAURENTIAN MUTUAL FUNDS RRSPs m GICs m RRIFs m ANNUITIES For Professional Advice Call - i JIM PARKES 571-1435 Imperial Life A MEMBER OF LAURENTIAN FINANCIAL VAN CAMP & KELLER CHARTERED ACCOUNTANTS Income tax planning and return preparation Personal tax returns electronically filed Preparation of government returns (T4's, 5's) Financial, estate and retirement planning INDIVIDUALS B CORPORATIONS B SMALL BUSINESSES m FARMS - Tax Retums are being processed now - 204 Casimir Street, Port Perry, Ontario L9L 1B7 Phone 985-9725 expenses. Home office costs associated with g and property taxes, property , utilities and other Excess allowable home expenses can be carried forward _ for one year and applied against income from the same business. Home office are not to be confused with business personal " residence are considered deductible only under certain circumstances. Under ITA 18(12) they can only be deductible if the work space is the individual's principal place of business; or the space is used Business expenses are deductible if they are i M for the purpose of gaining and producing income.*There are limitations and provisions as to what i is considered a deductible - for 1 "life insurance in general is not ductible, however if life exclusively for the pyr se of earning i fr 8i and is used on a r Ais and continuous basis for 1 theeting clients, customers, or patients of the individual. Only after these conditions are met, the home office expenses . must, be tpro:rated between insurance is required by a creditor it is deductible. As you can see it can get quite complicated. If you are considering starting a home-based busindss and-are unsure of what can be and noni-busi Use ible, seek prof on a reasonable basis. advice to determine what will be The most common method allowed. would be the basis of floor space The, above | article was used. However, home costs submitted by Betty Penny, an cannot create or i a loss. The total deduction will be limited to the amount of net business income. and owner of +1 A : P 8 INCOME TAX PREPARATION COMPUTERIZED INCOME TAX PREPARATION by SHARON BUTLER 1993 Honours Graduate of H&R Block Tax Course FULL REFUND CHEQUE FROM THE GOVERNMENT IN AS LITTLE AS SEVEN DAYS! Electronic Filing Revenue Canada, Taxation's new filing option. You can now file your tax return electronically through approved agents displaying this symbol. It's Fast - It's Accurate - [t's Paperiess! For further details call me at 985-1309 10% OFF Income Tax Preparation with this coupon. | GO FOR THE BEST RATE AND MAKE THE MOST OUT .OF YOUR MONEY! GO FOR THE BEST RATE! Choose the RSP MULTI-RATER, and benefit from a 5-year keep growing as the years go by - reaching 8% by the fifth year! Plus you have the flexibility to reinvest your money at the highest market rate available on the 2nd, 3rd, and 4th anniversary date, with no penalty. The RSP MULTI- RATER works to your advantage from start to finish. Take advantage of our expertise! Why not profit from Laurentian Bank's experience? help you benefit from the best investment and diversification strategies available. GIC with rates that 1% 5% 6% Ist Year 2nd Year 3rd Year * This offer ends March 1st, 1994, and cannot be combined with any other offer. indicated are the The rates of retum posted. . The rate lor the 5h year is guaranteed. 7% 8% 4th Year Sth Year on December 1s1, 1083 and are