By Devin Reese on 17-01-2014
As discussed in a post last week, the IRS has released Treas. Reg. §1.1298-1T, temporary regulations regarding the annual filing requirement (Form 8621) for Passive Foreign Investment Companies (“PFICs”).
It is important to note that these regulations only deal with the “annual” filing requirements for Form 8621. There may be other circumstances where Form 8621 is required for a particular year, but not for all years. For example, a taxpayer may need to file a Form 8621 in a particular year to make a mark-to-market election. However, if the de minimis rules apply, then Form 8621 may not be required for each year thereafter.
The regulations include four examples which apply the filing requirement rules and exceptions. We have created charts for each of the examples.
Images of the charts are shown below and links to PDFs of the charts are also shown:
- Treas. Reg. §1.1298-1T(g) Example 1,
- Treas. Reg. §1.1298-1T(g) Example 2,
- Treas. Reg. §1.1298-1T(g) Example 3,
- Treas. Reg. §1.1298-1T(g)
By Billie Nguyen on 16-01-2014
Tagged Under : 2014
Investors rejoice! On January 1, TFSA contribution room grows. For 2014, TFSA accounts get $5,500 in contribution room ($31,000 total). If you made a withdrawal in 2013, then this year, you can contribute up to $5,500 plus the 2013 withdrawal amount. Find out how much TFSA contribution room you have here.
2. Maximize your RESP contribution
For those of you with kids, a new year means more government matching for your RESP! The federal government will match 20% of your RESP contribution which maxes out at $500 per child per year. To max out the government contribution, youll need to contribute $2,500 per child to the RESP account.
Havent opened an account yet? We have ours with TD e-series, but if we had a child today, I would likely open it with a brokerage that offers commission free ETFs. Also, dont worry if you havent started contributing yet, you can still catch up on your RESP contributions!
3. Contribute to your RRSP
Another contribution?! I know, by the end of January, our savings stock pile definitely takes a hit but its worth it! Even though its no longer 2013, you can still contribute to your RRSP (or not) to your tax advantage. The RRSP
By Christopher Odonnell on 15-01-2014
It is often said that raising top tax rates will have little effect on business activity because only 2 percent of taxpayers with business income will be impacted. However, the more economically meaningful statistic is how much overall business income will be taxed at the highest rates. In 2011, the vast majority (70 percent) of pass-through business income was reported by taxpayers earning more than $200,000. Millionaire tax returns earned 34 percent of all private business income while taxpayers with incomes below $100,000 earned just 14 percent.
For more charts like the one below, see the second edition of our chart book, Putting a Face on America’s Tax Returns.
Business & Capital Taxes, Federal Taxes, Income Taxes
By Christopher Odonnell on 11-01-2014
A few weeks ago I talked about something called debt creep. This is the process of buying small things with your credit card that add up to a large debt over time. A good example is buying a latte every day and over time you realize that you have a few hundred dollars or more of debt.
However over the holidays Ive been reviewing my finances and noticed another financial issue that has been causing me some big issues and for a lack of better words I called it debt swapping.
Debt swapping is the process of moving debt from one place to another. On top of that is can work in a few different ways. For example, you may have a bunch of credit card debt so you might decide to refinance your home mortgage to get rid of the higher interest rate and move it to a lower fixed interest rate.
The trick is that you are not necessarily lowering the amount of debt you have but rather just looking to get more favorable terms, such as a lower fixed rate, and to clear off your credit cards.
Now this is just one version of debt swapping. An
By Devin Reese on 08-01-2014
The Prime Minister told MPs yesterday that there were more abnormal weather events occurring and he very much suspected they were linked to global temperature changes. Yet over the past decade the government has received an abundance of unequivocal official advice:
2004: “Rising sea levels and increasingly severe and frequent rainstorms caused by climate change mean that the risk of flooding will increase.” Flooding in England: A National Assessment of Flood Risk, Environment Agency, 2004. (This report has 20 references to climate change)
2008: The Climate Change Act (2008) requires a UK-wide climate change risk assessment every five years accompanied by a national adaptation programme that is also reviewed every five years. The Act has given the Government new powers to require public bodies and statutory organisations such as water companies to report on how they are adapting to climate change.
2011: “Rainfall extremes are generally projected to increase, particularly during winter, with changes during summer are more uncertain. Several