www.insideHALTON.com | OAKVILLE BEAVER | Thursday, August 11, 2016 | 18 Better to hold interest-bearing investments in a RRSP , RESP or RRIF continued from p.16 investment earnings is better than a tax deferral. You should note while RRSP contributions provide a tax deduction, contributions to a TFSA do not create a tax deduction. The final type of account that many investors use is an Investment Account. Any investment income earned in an Investment Account is taxable during the year it was earned. So much for tax theory, now let's consider some tax strategies that can save you money by reducing the amount of taxes you pay. I will assume you own both stocks and bonds. The question is: in which accounts should you hold these two different types of investments in order to reduce your tax bill? From a tax perspective, interest income is the least desirable because 100 per cent of it is taxable. Better to defer that tax liability and hold interest-bearing investments in a RRSP , RESP or RRIF . Stocks can pay dividends and provide the opportunity for capital gains, and both dividends and capital gains have income tax benefits. In most cases stocks should be held in your Investment Account. The best income tax shelter available to see Hold on p.20 Get the Hottest Hair Looks Head back to school with a fabulous new style! $40 Student Special Book Today! Limited-time special with student ID. Cut & Style *Cut out this ad and save 10% on your food bill 418 Speers Rd, Unit #4, Oakville (West of Dorval ) | 905-582-4443 | www.santorinihairspa.com Thinking of having your furniture for the fall. Get your orders in early as we are booking up quickly. *SAVE VE NOW 10% AILD AILD VAILD AT 1011 Uppermiddle Rd East & 217 Cross Ave Oakville(DINE IN ONLY) This coupon is only valid at 1011 Uppermiddle Rd E & 217 Cross Ave in Oakville ON. This coupon entitles you to 10% off your food bill before tax. Only one coupon per table. Taxes extra. No cash value. Expires on August 1, 2016. September 1st DINE IN ONLY Interlocking & Concrete Specialists Since 1967 upholstery & design 2016 Nominee for Best Upholsterer 2015 Diamond Award Winner Best Upholsterer www.baiers.ca · Pebble Concrete · Stamped Concrete · Interlocking · Flagstone · Walkways · Garage Floors · Patios · Driveways · Curbs (French) Sofas · Chairs · Headboards · Throw Pillows · Drapery & Hardware Call Mario 905.842.7171 sunmarlandscape.com R0063759717 11-2345 Wyecroft Rd, Oakville · 905.616.3156 · info@baiers.ca Leaky Basement? Call Us! · Crack k Injection nje Repair Specialist · Wise Dry Interior Drain Systems · Lifetime Fully Transferrable Warranty · Masonry/Parging Repairs Compression soCks are simply a good idea. · Designed to provide support to the veins in your legs · Encourage blood flow · Improve PERFORMANCE · Aid in RECOVERY Call Us... 905-510-9739 Professional, Cost E ective Solutions for Wet wayne@wisecracks.com Basements w w w. H a l t o n Wi s e C ra c k s. co m Oakville Burlington 380 Dundas St. E. 3350 Fairview St. T: 905.257.4335 T: 905.637.4335