XPost: can.general, can.politics, ott.general   
   From: Canuck57@nospam.com   
      
   On 13/01/2012 8:40 PM, John Fleming wrote:   
   > On Thu, 12 Jan 2012 22:54:41 -0700, while chained to a desk   
   > in the scriptorium Canuck57  wrote:   
   >> $On 09/01/2012 6:02 PM, John Fleming wrote:   
   >> $>  On Sun, 08 Jan 2012 17:47:01 -0700, while chained to a desk   
   >> $>  in the scriptorium Canuck57   wrote:   
   >> $>   
   >> $>>  $It is.  Just tells people they are herd sheep of the government, just   
   >> $>>  $there for the fleecing.  In my case, LOL, I wasn't going to get a tax   
   >> $>>  $lawyer for $34.  They know that.   
   >> $>   
   >> $>  The tax lawyer would set you back several hundred dollars   
   >> $>  per hour or part thereof.   
   >> $   
   >> $Yep, but in the end they will lose big.  100% legal too.  Because now I   
   >> $am determined to legally do whatever it takes to reduce taxes and have   
   >> $the time and flexibility to do it.  Turns out I get an extra bonus too,   
   >> $pension income averaging.  I tripped on this well this year.   
   >   
   > So how does that work?  Pension income is a part of income   
   > tax I really don't know much about.   
      
   I am no expert on it, but it looks like this.  If one person has a large   
   pension income stream, instead of just taking the other person as a   
   deduction, you can use their lower taxed room as well.   
      
   For even numbers (not actual), say your income from all sources is   
   75K/year.  That puts you in a high tax bracket as your spouse is only   
   worth a $10K deduction, for $20K off for a taxable income of $55K but   
   still in a higher rate bracket.   
      
   Now say $50K of it was pension income as you have a fat RRSP/LIRA   
   situation, and splittable.  You can shift the pension income to the wife   
   so that you both are in the lower tax bracket.  Each gets $37.5K of   
   income, a $10k deduction for just $27K taxable in the lower bracket.   
      
   Mine is more complex than above but the principle is the same.   
      
   I targeted my taxable income to be X, but when I plugged the numbers   
   into the 2011 UFile, it slipped the pension come to the wife and lowered   
   my taxes owed well below my target.  Sweet.   
      
   So in fact, this is a hidden RRSP/LIRA/IRA advantage.  It allows you to   
   further leverage RRSP taxable situation, buy contributing at a 30-40%   
   tax credit in, and pay a lower rate out.   
      
   Leaves more money to spend on productive people.   
   --   
   No mater how liberally you try to ignore rationality and reality,   
   reality always wins in the end.   
      
   --- SoupGate-Win32 v1.05   
    * Origin: you cannot sedate... all the things you hate (1:229/2)