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2% i1902 ISHISKO'S ýfruh- market, recently donateci good specimens are ,Barbara Murray, chair,, J coseto 00pu mpkins to Whitby Psychi- of the hospital' United *Way camfpaign, Iatric Hospital to help with the hospital staff and Shisko owner Florence SIîisko. United Way campaign. Picking out some Photo by Mark Reesor, Whitby free Press 117M.*...*.........................*.............. hio ax tu1ps f or en'trepreýneur&~j (NO) Home offices are on the increase. If you are thinking of running your own business from home, youll need to know these 10 tax tips: 1. Graoe before the taxi man. You first year as-a -sole' porerhip can, ho a, ,grace pro where yo'u dont'declare your income. At the lend.of this period, declare your first' fiscal. year, thon <arra nge a, payment plan, with' Revenue Canada (payments can be made quartorly, paid directly each month by you, or paid through your bank). -2. Room to .lot. You can dlaim a portion of your rent or .mortgage interost. payments for your office, based on the percentage of space or rooms used eg.300/1,200 sq. ft. or one-fourth, of total rooms). You can alo deduct -part of your mortgage principal paymonts -but it's not always a good idea as tour taxes will ho affected.when selling the house. 3. Baby, it's cold outside. You can also dlaim a portion of your utilities- (heat andhyr) bsdon ho above.- 4. Aurally* speaking.- Have a separate . telephone, lino installed. Only business long distance calîs' from your residential lime can bo, claimed, not the basic fee. A, second residence lime can ho claimed for your office and it's cheaper; the only difference is you won't get a' yellow pages listing. A second line helps keop family calîs separato <.5. Bat, drink and bo merzy. Eighty per cent of your entertaininent. for business purposes is claimable, whetherý you entertain clients at home or at a restaurant. For, oxaniple, fîor, a $100 bill, daim $80. But be prepared te justify your expenses as business-related. 6. Make- a paper trai. Keep receipts. Whether you tape, thein in a notebook or stuf them In a shoebox, receipts are crucial should your business ho audited. 7. Get, married. Consider paying your spouse (or other family member) te divide income across two lower tax brackets instead of having it accrue inone fat tax bracket. 8- Head out on the hihwy.A percentage ' of automobile' service and mileage cen ho clàimed. Keep a mileage log and a record of aIl service, and, gas 'bills te calculate what percontage are for> business purposes. Generally, automobile expenses are claimed on .a percentage-of use for business during the year. 90.'Succese bas its price.> f your business makes more Ithan' $30,000 'a year, youl1l neod to register for a CST nwnber.- 10. Make a new friend. Find an accountant who is just getting stated. Heoc she can make sense out of -your. records, andý explain any tax breaks you May, have' missed, and you'll got btter service at a lower rate. Both branches of the Bank of Montreal 'in Wh Mitby wilk hold. opnhouse'on Tuesday Nov. 3. ThRe opon house wiîî be held te- mark the Ban k of 'Monîtreal's 175th anniversary in Canada. There will ho a largo cake, and refreshmonts will ho served.' Bank branches are'at'the four corners in downtown Whitby and at the Whitby MaIl. gnoMmuMMMFIrancla CO'a' Cfal 416434-6119 for.a comïplemenitary, consultation.,. DEREK DUTKA Vour Financiat. Health Derek, Dutka'« Caýpital ga ins i n .R RSPs Since capital gains and dividends are taxedless than interost ncm, maniy investors- are told they are, wasting tir taxk bonefits by holding stocls,or mutual un:& investedin stoks witlun their. Registerod Retirement Savings Plans (RRSPs). It's a popular istrategy, but one with shortconiings, These- advisors déaimn that any ,inicome' investors receive within their RRSPs' will 'eventually be taxed at 'their ful personal rate when Ithey withdraw thfeirfunds. -Indeed,,that will happen when they collapse their RLRSPs and convert them either int an annuity or a » Registered Retirement Income Fund< (ERIF. .Lets consider an example tamght happnSuosyu bought 100 shares of% ABC Inc. at $1 ach..By some stroke of good fortune, theysoared the:neityear to $20 each. You gainhed $1,000 on ouinvestment. If you. owuneid teesae hn an, RRSP and' withdrew that profit of,$1,000 from ,the plan, assuming amarginaltax. rate oêf 45 per cent, you wýill ýnet only $e550.However, if you own these sanie shares outsidean RRSP and cani still shelter your profit b y sng our capital gains exemption,, y-ou could , eep your on t reprfto$100Buifyu had already used up your capital gains exemption, you wouôlld net about »$660 after your Now, consider what mjght have happened had you received your ganswithnyorRWP and, reinvstd them w*thinyu plan. e' assume you are 30.years old aLnd,,3Oyears awayf9om. retirent If we assume youwouldreceive a 10 per cent return on your investmeënt, that $1,000 would be worth about $17'500 when you turn'60. If you were still in the 45 per cent tax bracket, you would net oximatol $9,600 after tai. aPrad you .followed , opuIaradvioe of-so-me flnancilavsr andrecived"ypur caital..gainsp!Brsonally, y ou would ,not do as. well.,In fact, ýthaýt'same $1 000 invested a 0>ercet and taxed at 45 per cent a year,> wou1â be worth only a;ut$500.- 30 years later. The outlook would bo even bleaker hadyopidtxnth initial capital gain. That $660 would howQt a paltry $3,300 in» 30 years. -Tax reforin, whiçh has repealed theý- $1,000 investmientý- income deductioni and increasedlthe 'tax bite on capital gains from- one-haîf te two-thirdsin 1989 and three-quarters, in 1990, has made conventional wisdom irrelevant. RRSPs still have long-tem power for accumulating ,savings. And'foregoing traditional1 tax benefits associated' with, receivin capital gains or'dividends'is naking sense beaueinvetorscan reînvest profits free of tax withinaàn. RRSP for an.,oxtended peiod.. these conditions, potential -investors ought te seriously consider putting stocks inside their RRSP, as manylinïvestors have done alread1'.And, If you are like most investors and 1ack the patience, skà1and" disciplineà te manage, your own 'equity ortrolio consider an- e uty or. growth mutual fund .suc h as those off'red by Trimark Investment Management -Ic. as.one of -your RRSP investments. Mutual funde are liqùid, diversified and xnanagedý professioônally. Talk te our financial planner or advis-rabout' the fund that best suits your own-financial goals and needs. i77 uroup 1