Question
TAX PLANNING SECTION REQUIRED: Respond to the Browns queries below in this section of the financial plan: Sale of Principal Residence The Browns informed you
TAX PLANNING SECTION
REQUIRED: Respond to the Browns queries below in this section of the financial plan:
Sale of Principal Residence
The Browns informed you that they plan to sell their principal residence in 2024 and buy a condominium that year for $400,000 to live in. They would like to know if you can estimate the income tax payable on the sale of their home. Bills marginal tax rate is 25%. Bettys marginal tax rate is 40%.
RRSP vs Locked-in RRSP
Betty would like you to tell her if she should make her RRSP contribution this year to her regular RRSP or to her Lock-in RRSP. Bettys RRSP lost 12.4% last year. Bettys Locked-in RRSP earned a return of 6% last year. Please provide Betty with an answer.
Open Other Tax Deferred Account (s)
Betty would also like you to tell her if there are any other tax strategies or other registered accounts that she should consider using in order to minimize the Browns income taxes.
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