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Gold/Mining/Energy : CDN. MOMO PUPPIES -- Ignore unavailable to you. Want to Upgrade?

To: Conky Lives! who wrote (33918)	5/17/2000 12:36:00 PM
From: russet	Read Replies (1) \| Respond to of 36688

The problem with asking for, or getting an opinion from, <<revcan is that they ask for a sin number to go with the request -I believe this is also true when someone (i.e. your accountant etc) makes a request on your behalf. --> not a good idea to have revcan know who you are and what your borderline situation is. Leon>> You bring up a good point, but (gggggggggggg) if I had known 4 years ago, what Revenue Canada was going to do to me (and a good accountant should know but many don't) I could have structured my affairs to take advantage of deductions from income,...for instance I could have enjoyed a few more AGM's, or bought more equipment, or hired some people to help knowing those deductions would be allowed. With capital gains they are not. Another thing I didn't know came up too. If you borrow money personally to make capital gains, the deduction for interest is disallowed. You can only borrow money to make investment income defined as interest and dividend income primarily. So someone flipping stocks frequently could have the interest deduction disallowed. That's what has just happened to me, but the returns I used capital gains in, are being changed to business income, so the loan interest will now be deductible. My main point is, accountants who say "wait until the end of the year to decide which way to declare" or "capital gains is the best way to go and short term flipping is okay as long as you have a full time job somewhere else so you don't spend much time analyzing stocks so aren't really a trader" are full of chit. There are lots of ignorant accountants out there. CA's should be keeping up, but I guess some sleep through the upgrading seminars or don't read all the bulletins coming to them. The squisher is, the interest that compounds over the years could kill you if you don't get good advice. In my case, I could have got hit with 4 years of interest on the outstanding balance from 1995 if I didn't have deductions to wipe out the gain switching from capital gains to business income. Then there is the compounding from 1996, 1997, 1998. If you have to switch, the faster you do it, the better. If an accountant gave you crap advice, and you have the accountants comments recorded some how, you could sue them for the interest penalties and difference in income you will have to pay. If their advice was faulty, they are responsible. Good luck all.