In 1976 one of David Ingram's tax clients had to borrow money to pay the expenses of his rental property until his tenant received an insurance settlement - about 2 years later. The client, upon receiving all the back rent, asked David if he HAD to pay down the business loan with this money, or could he use it to pay down his mortgage or for any other personal use.

Thus was born the concept of making the mortgage of a business proprietor tax deductible. Along the way from then to now this concept has passed to others, had books written about it, and had bank managers and other financial consultants call the concept "ILLEGAL" - but it isn't, and David proves it in this video. You can read about this in David's November 2001 Newsletter as well.

Brian Elgood is new man on the block at Seabank Capital but he has extensive background in tonight's topic - charitable foundations and the various ways that individuals can make donations to them in the most beneficial ways.

David and Brian discuss the potential for giving charitable foundations stock that would otherwise require capital gains tax be paid. Doing the giving this way, rather than liquidating the stock and giving the proceeds, increases the benefit to the charity and may in fact lower the donor's tax burden more than the typical write-off would. Richard Moore, David's earlier guest this evening, has used this technique and explains how and why he used it.

Although it is administered by the Canada Revenue Agency, the topic of this interview is not actually a tax. In fact it is the Canadian government giving money away this time - kind of a negative tax, or as they call it - a tax rebate or tax credit; but they send you money even if the company has not yet paid tax!

That's the Scientific Research and Experimental Development program. While it applies to all taxable businesses doing business in Canada, it is especially lucrative for Canadian Controlled Private Corporations. Richard spent four years as a SR&ED consultant to CRA, reviewing hundreds of projects. He has a unique insight into the program and how to make the process of claiming the rebates flow smoothly

We'll let David and Richard Moore tell you all about it.

Read on for more info on how to get in touch with Richard

David answers a telephone question:

Real Estate - primary residence changed to rental property

Form T2091 to claim a property as a principle residence.

Send your questions to David at:

taxman @ centa.com
or call in to the program Wednesday evenings (Pacific Time) during designated times at
604-980-0499 or long distance 1-866-980-0499

Reference:

The CEN-TAPEDE November 2001