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Gold/Mining/Energy : TAXES, TAXATION, TAX and Canadian stocks -- Ignore unavailable to you. Want to Upgrade?

To: toccodolce who wrote (55)	3/2/2000 2:35:00 PM
From: Smacs	Respond to of 548

As long as it was included in the previous year's tax return (which of course, it should be). You could still contibute 18% of the previous year's income to your RRSP whether it's income from investments or from a paycheck. Remember though, that's only if your gains were treated as income and not capital gains. -sm-

To: toccodolce who wrote (55)	3/2/2000 3:03:00 PM
From: David Robinson	Read Replies (1) \| Respond to of 548

Anyone with an RRSP deduction limit can contribute to an RRSP and claim a tax deduction against the current year's income - whether it is investment income, employment income, or whatever. However, unless you have an unused RRSP deduction limit, you will not be able to make a deduction. Check your 1998 Notice of Assessment for your RRSP contribution/deduction limit. An RRSP deduction limit is based on your "earned income" of previous years. "Earned income" includes income earned from employment or self-employment, but generally not income earned from investments, such as capital gains (unless perhaps you report your investment gains and losses as "business income" - but then your profits are taxed fully rather than only 3/4 or 2/3 of capital gains) Maybe others can help on the subject of reporting your trading activity as a business. If you no longer have an "earned income" then your investing profits will not allow you to build up any NEW RRSP deduction room for the future, but as I have said above you can still make RRSP deductions against any UNUSED RRSP deduction room of previous years. hope this helps, david

To: toccodolce who wrote (55)	3/4/2000 3:19:00 PM
From: Frank Walker	Read Replies (1) \| Respond to of 548

Currently you can only contribute up to 18% of EARNED INCOME to an RRSP, up to $12,500 annually. For most people EARNED INCOME is employment income, and earned income does not include capital gains. I have been living off capital gains for several years and have not been able to make any significant RRSP contributions during this period. That is a disadvantage to being an investor without a "real job", also I cannot make CPP contributions since that is based on earned income. If you get an RRSP information booklet from TD Bank, it explains the basics. ILG PS I would actually like to make enough CPP contributions to max out my CPP. Although my stock investments are doing great right now, when I am 70 or so, I don't expect to own as many. The CPP income, say $600/month in today's currency, would be nice, especially when you calculate the amount of bonds you would need to get that income. If you have the CPP income, you do not spend a bundle to buy those bonds, and instead you can spend the money on a better house, boat, vacations, etc.