Page 38 - Sports Energy News, Cornwall, Issue No 124

38 Issue #124 May 2023 www.sportsenergynews.com

Local Pr
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Neighbourly
Neighbourly Advice From Our Local Professionals
Advice Fr
The comment was made on Thursday by increase in interest rates, and mortgage
By Brian Johnston Peter Routledge, head of the Office of the delinquencies remain at historic lows,”
Mortgage Specialist Superintendent of Financial Institutions Routledge told a small group of reporters
(OSFI), which in December maintained its backstage in Toronto following an event

MORTGAGE STRESS TEST HELPED qualifying rate for uninsured mortgages. sponsored by the Economic Club of
PROTECT CANADA’S HOUSING As part of the mortgage stress test, Canada. “We’ve been through this for a
MARKET DURING DOWNTURN borrowers must prove they can afford year, and you would expect to have seen
The mortgage stress test has thus far payments at the higher of 5.25%, or two some speck of deterioration, but it really
proven effective in protecting the housing percentage points above their contract hasn’t.”
sector from a volatile economy, but further changes haven’t been rate. While OSFI is considering potential
ruled out, says Canada’s banking regulator. “We just absorbed a 1980s-level Continued on page 60

the amount they depreciated, and unlike by $50,000. Investor A has to claim this
By Michael VanderMeer
capital gains which is only taxed on 50% $50,000 as income for year B along with
Real Estate Agent
of the gain, the recaptured depreciation is any capital gains he has incurred. The
taxed on the full amount that you have
amount of tax he pays will depend on
RECAPTURED DEPRECIATION IN depreciated your property and added to which income level he is in for year B.
REAL ESTATE. your income the year you dispose of the
Recaptured depreciation is known as property. I have included a brief example The example above is a prime example
Capital Gains’ bad cousin. When you below. of how you may want to discuss with an
sell a property that is not your principal Investor A sells his investment property accountant if depreciating a property is
residence (a home you live in full time), then you are subject to in year B. He has owned the property right for you as in the end, you could end
the capital gains tax; but what some investors forget is that if they for twenty years and during that time up paying more taxes than if you had not
depreciated the property over the years they are also taxed on he depreciated the value of the property depreciated your property.

But what does this mean? What if you money, family, and values, to name a few.
Max Ming P.Eng. CFP ®
Financial Planner aren’t even sure what you’re trying to Secondly, it’s to give you tremendous
accomplish? Is it too early to start? Is it confidence from knowing you are making
The Planning Process too late to start? The questions could go smart choices with your money… and
The term financial planning gets tossed on all day… seeing the impact on a regular basis. In
around all the time, but we often find For us, the planning process is about many cases this allows you to feel more
that when we meet with people, they still providing a unique experience to clients freedom in life. How?
aren’t really sure what a financial plan is that will accomplish two things. Much of the process surrounds what we
or what it accomplishes. First, obtaining a clear vision of what is call ‘Critical Financial Events’. These
On the surface, a plan covers budgeting, investing, insurance, most important in your life. This is done events are sometimes predictable and
retirement planning, tax planning, and also estate planning. by understanding your relationship with Continued on page 60

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