Tax season

It's official. We're in tax season. It's time to start thinking about doing your taxes. If you usually get a refund, it's a good idea to get started early. That way, the Canada Revenue Agency will be able to get your refund back to you that much quicker. Money in the pocket is never a bad idea.

This year, I would like people to post some of their tax questions online. You can remain annonymous to protect your financial privacy, but I would like to offer advice so that everyone can save a little bit of money this year. If I save you enough money, you could always treat me to a nice dinner :P

I think I will post some tax tips occasionally because my real estate ventures are currently at a standstill. I'm too busy with accounting at this point to be worrying about completing the last course of the real estate program. I will be back to the real estate thing after April 30th, the tax deadline day.

Home insurance

Today's lesson is in home insurance. I received a notice the other day from my previous insurance carrier that my bill for my home was going to be over $2400. I thought this was ludicrous. I almost would prefer to not own a home. I asked my broker to look into things further, especially given the fact that I was now occupying the home. My broker was not able to negotiate any new rates. I thought I would begin to shop.

In all fairness to my broker, they likely only had a few companies that they deal with. My circumstance is somewhat unusual and perhaps high-risk for some carriers. My broker may not have been able to offer me a better deal.

I called around and did some online quotes. I got a pretty good idea of what I should expect from my insurance. I found a place that offered me a much better rate; and, since I bundled it with my car insurance, I am able to save on both. On both my car insurance and my home, I am about to save about $2300/ year. It looks like a pretty productive lunch.

The lesson is this. Shop around! There are some insurance companies that are very respectable that can offer good rates. It might just depend on the type of insurance you are getting. In my case, I have 3 roommates which is a bit unusual for some carriers and not for others. The trick is to find a carrier or a broker that deals in those types of deals. I didn't skimp out on any sort of coverage, I actually increased my protection (except on the car, it's worthless anyways), but I was able to save a lot of money.

I won't disclose which companies I have used because I don't want to get hit with any sort of defamation lawsuit. I won't disclose which company I have decided to go with either... just in case I find a better insurance carrier, and I want to rip up this carrier in the future. :P

Possible changes of plans

This is likely to be a useless post, but in order to keep everyone "up-to-date" I'm going to say that I am looking at going in a different direction with my Arlington home. I need to get more information before this is settled; but, if I can do what I want to do, I'll be quite happy. Unfortunately, I do not want to disclose what this option is at the moment, hence the uselessness of the post. Sorry for wasting your time?!?!?!

Real Estate Exam number 2

A couple of Saturdays ago, I wrote exam #2 of 3 for Real Estate. I was a little worried that I hadn't studied enough because I had just returned from a week long trip to Holguin, Cuba.

My apprehensions were unwarranted. I got 88% on my exam and now I just have one more exam to write before I can buy and sell real estate. Unfortunately, the next session there is a classroom component that is required. Due to my status as a Chartered Accountant, I will not be able to attend these classes until late spring/early summer. I don't anticipate too many problems, so I expect to have a license to trade sometime in May.

How the budget yesterday affects you...

Incentives! Incentives! Incentives!

As a future real estate agent/chartered accountant, I feel as if it's my duty to report to everyone the items that were offered in the most recent federal budget for real estate participants. Now, the incentives that have been offered are not for everyone. There is a targeted market for the incentives and you should speak to an accountant or a knowledgeable real estate agent for more information for your particular situation.

First, the maximum under the Home Buyer's Plan has increased from $20,000 to $25,000. This means that you may withdraw up to $25,000 tax free (repayments are required over 15 years) from your RRSP to purchase your first home. RRSP contributions reduce your taxable income, so that your taxes owing are much lower. As a result, you may be entitled to a nice refund. If done properly, you can save yourself a lot of money when purchasing your first home. You should speak to an accountant to find out the details of how to best take advantage of the tax implications of your purchase.

Now, the importance of the $5000 increase can be significant in some circumstances. The Canadian mortgage system requires mortgage insurance when purchasing a home for under a 25% down payment. This means that more of your down payment can come from taking advantage of this plan. Please plan your home purchase with a knowledgeable salesperson.

Next, there is a new credit being offered for first time home buyer's. This is separate from the home buyer's plan. You really do not have to do anything to earn this credit other than purchase your first home, and have an acccountant that knows what they are doing. This is a non-refundable credit of 15% based on $5,000. This credit is available to first-tiime home buyers after January 27, 2009.

I realize that I may have spoken a foreign language to you. Basically, the point I want to get across is that if you are thinking of purchasing a home is to think of me. I have the required knowledge to make sure the purchase is done properly, saving your hundreds and possibly thousands of $$$. I have extensive knowledge of the Ottawa market having lived in Ottawa for 25 years, and I have been working in accounting since 2004.

Updates...

Well, it looks like I've been doing a terrible job at updating this blog. I'd like to keep this thing up to date, but there is really a lot of things that have happened in the last month. I actually had to look at the last post to know where to start off.

In my last post, I wrote that I was getting my results for my chartered accounting exam. Of course, I've left everyone in suspense for about a month and a half. Now, given the time lapse, you might think that I have jumped off a bridge, or in front of a car. In fact, I passed my exam; and now, I'm just waiting to receive the official piece of paper at my February convocation.

Again, I don't have that much time, but hopefully tomorrow I will post some stuff about my real estate endeavors. I also have a trip to Cuba that I should talk a little about.