Desjardins Wealth Management

Your needs

Pay less in taxes

Pay less in taxes

  • To take advantage of the lowest tax rate, certain processes allow you to split your income with family members.
  • This measure will be of particular interest to you if your income is significantly higher than that of your spouse (married or common-law).
  • Splitting can take place during your active life or at retirement. There are several income splitting processes:
    • Contributing to your spouse's RRSP
    • Granting your spouse a prescribed rate loan they can then invest in the investment product of their choice
    • Making a gift to your adult child
  • Medical expenses
    • Combine medical expenses for the family.
    • Add:
      • private insurance premiums
      • the portion not covered by insurance
      • expenses not covered by insurance, but eligible under tax rules
  • Disability: receive a tax credit even if your disability is temporary (at least 12 consecutive months).
  • Natural caregiver: receive this tax credit if you reside with a disabled relative.
  • Moving: deduct these expenses while complying with the application conditions.
  • Philanthropy: optimize the credit for charitable donations by taking into account the total amount donated by the couple.
  • If, unlike you, your spouse is retired, split with them an annuity amount allowing you to use the deduction for retirement income.
  • Make an excess contribution up to $2,000 (lifetime limit).
  • Make a gift of $2,000 to an adult child so they can invest it in an RRSP, even if they have no eligible income.
  • Main features:
    • retirement capital accumulation
    • tax-deductible contributions
    • tax-free growth
    • taxable withdrawals (exceptions aside)
  • As of 2013, contribute up to $5,500 a year (maximum $5,000 from 2009 to 2012) even if you've maxed out your RRSP.
  • Loan your spouse or adult children money to invest in a TFSA.
  • Main features:
    • Accumulation objective for retirement or various projects
    • Cumulative contribution room from one year to the next
    • Tax-free growth
    • Non-taxable withdrawals
  • Plan for your children's and grandchildren's education.
  • Contribute the maximum: returns are tax-sheltered.
  • Benefit from government grants:
    • The Canada Education Savings Grant (CESG): up to $500 a year, with a lifetime maximum of $7,200
    • The Québec Education Savings Incentive (QESI): up to $250 a year, with a lifetime maximum of $3,600 (additional grants possible under certain conditions)
    • Option of carrying over unused contribution room
  • Main features:
    • Tax-free growth
    • Regular instalments also available
    • Taxable withdrawals in the hands of the beneficiary
    • If the beneficiary doesn't use their RESP, you can transfer the income to your RRSP.
Tax benefits per plan
Plan RRSP TFSA RESP
Tax deduction S'applique    
Income splitting S'applique S'applique S'applique
Government grants     S'applique
Income tax deferral S'applique   S'applique
No income tax   S'applique  

Tax-sheltered plans: Higher savings, lower taxes (PDF, 480 KB)

  • Analyze your portfolio yearly to benefit from your tax losses:
    • Show losses to negate gains, or show earnings to use gains.
    • Apply the year's losses to the past 3 years and save on tax.
    • Remember that capital gains and eligible dividends are taxed at a lower rate than interest.
      Type of income and marginal tax rate (2013)
      Taxable income Salary and interest Eligible dividends Capital gains
      $75,000 38.4% 19.3% 19.2%
      $85,000 42.4% 24.8% 21.2%
      $95,000 45.7% 29.3% 22.9%
      $105,000 47.5% 31.8% 23.7%
      $135,000 50.0% 35.2% 25.0%
  • Opt for products with tax benefits:
    • Chorus II portfolios
    • Income options – Desjardins Funds T-Class Units
  • Opt for investments that offer deductions and tax credits:
    • Shares eligible for the Stock Savings Plan
    • Capital régional et coopératif Desjardins
  • Split your income to benefit from the lowest tax rate by:
    • hiring your spouse as part of your professional activities
    • paying your children (adults or minors) a reasonable salary for work-related activities
  • Splitting can take place during your active life or at retirement. There are several income splitting processes:
    • Contributing to your spouse's RRSP
    • Granting your spouse a prescribed loan they can invest in the investment product of their choice
    • Making a gift to your adult child
  • Deductible business expenses:
    • Home office costs (prorated portion of your rent or mortgage payment, heating and lighting, office supplies and furniture, telecommunications).
    • Entertainment expenses.
    • Travel expenses.
    • Ask about cash damming. This technique lets you convert your personal debt, for which interest is not deductible, into new debt to cover your business expenses, for which interest is fully deductible.
  • Medical expenses:
    • Combine medical expenses for the family.
    • Add:
      • private insurance premiums
      • the portion not covered by insurance
      • expenses not covered by insurance, but eligible under tax rules
  • Disability: receive a tax credit even if your disability is temporary (at least 12 consecutive months.
  • Natural caregiver: receive this tax credit if you reside with a disabled relative.
  • Moving: deduct these expenses while complying with the application conditions.
  • Philanthropy: optimize the credit for charitable donations by taking into account the total amount donated by the couple.
  • If, unlike you, your spouse is retired, split with them an annuity amount allowing you to use the deduction for retirement income.
  • Make an excess contribution up to $2,000 (lifetime limit).
  • Make a gift of $2,000 to an adult child so they can invest it in an RRSP, even if they have no eligible income.
  • Main features:
    • Retirement capital accumulation
    • Tax-deductible contributions
    • Tax-free growth
    • Taxable withdrawals (exceptions aside)
  • As of 2013, contribute up to $5,500 a year (maximum $5,000 from 2009 to 2012) even if you've maxed out your RRSP.
  • Loan your spouse or adult children money to invest in a TFSA.
  • Main features:
    • Accumulation objective for retirement or various projects
    • Cumulative contribution room from one year to the next
    • Tax-free growth
    • Non-taxable withdrawals
  • Plan for your children's and grandchildren's education.
  • Contribute the maximum: the returns are tax-sheltered.
  • Benefit from government grants:
    • The Canada Education Savings Grant (CESG): up to $500 a year, with a lifetime maximum of $7,200
    • The Québec Education Savings Incentive (QESI): up to $250 a year, with a lifetime maximum of $3,600 (additional grants possible under certain conditions)
    • Option of carrying over unused contribution room
  • Main features:
    • Tax-free growth
    • Regular instalments also available
    • Taxable withdrawals in the hands of the beneficiary
    • If the beneficiary doesn't use their RESP, you can transfer the income to your RRSP.
Tax benefits per plan
Plan RRSP TFSA RESP
Tax deduction S'applique    
Income splitting S'applique S'applique S'applique
Government grants     S'applique
Income tax deferral S'applique   S'applique
No income tax   S'applique  

Tax-sheltered plans: Higher savings, lower taxes d'impôt (PDF, 480 KB)

  • Analyze your portfolio yearly to benefit from your tax losses:
    • Show losses to negate gains, or show earnings to use gains.
    • Apply the year's losses to the past 3 years and save on tax.
    • Remember that capital gains and eligible dividends are taxed at a lower rate than interest.
      Type of income and marginal tax rate (2013)
      Taxable income Salary and interest Eligible dividends Capital gains
      $75,000 38.4% 19.3% 19.2%
      $85,000 42.4% 24.8% 21.2%
      $95,000 45.7% 29.3% 22.9%
      $105,000 47.5% 31.8% 23.7%
      $135,000 50.0% 35.2% 25.0%
  • Opt for products with tax benefits:
    • Chorus II portfolios
    • Income options – Desjardins Funds T-Class Units
  • Opt for investments that offer tax deductions and credits:
    • Shares eligible for the Stock Savings Plan
    • Capital régional et coopératif Desjardins

For senior executives:

  • Negotiate your remuneration to include taxable or non-taxable benefits:
    • Use of a company car
    • Reimbursement of certain expenses
    • Low interest rate loan
    • Some insurance premiums paid by the employer
  • Plan for income averaging mechanisms:
    • Stock options with the company you work for
    • Bigger bonus at retirement
    • Employee's profit sharing plan
  • Split your income:
    • To take advantage of the lowest tax rate, certain processes allow you to split your income with family members.
    • This measure will be of particular interest to you if your income is significantly higher than that of your spouse (married or common-law).
    • Splitting can take place during your active life or at retirement. There are several income splitting processes:
      • Contributing to your spouse's RRSP
      • Granting your spouse a prescribed rate loan they can then invest in the investment product of their choice
      • Making a gift to your adult child

Medical expenses:

  • Combine medical expenses for the family.
  • Add:
    • private insurance premiums
    • the portion not covered by insurance
    • expenses not covered by insurance, but eligible under tax rules
  • Disability: receive a tax credit even if your disability is temporary (at least 12 consecutive months.
  • Natural caregiver: receive this tax credit if you reside with a disabled relative.
  • Moving: deduct these expenses while complying with the application conditions.
  • Philanthropy: optimize the credit for charitable donations by taking into account the total amount donated by the couple.
  • If, unlike you, your spouse is retired, split with them an annuity amount allowing you to use the deduction for retirement income.
  • Make an excess contribution up to $2,000 (lifetime limit).
  • Make a gift of $2,000 to an adult child so they can invest it in an RRSP, even if they have no eligible income.
  • Main features:
    • Retirement capital accumulation
    • Tax-deductible contributions
    • Tax-free growth
    • Taxable withdrawals (exceptions aside)
  • As of 2013, contribute up to $5,500 a year (maximum $5,000 from 2009 to 2012) even if you've maxed out your RRSP.
  • Loan your spouse or adult children money to invest in a TFSA.
  • Main features:
    • Accumulation objective for retirement or various projects
    • Cumulative contribution room from one year to the next
    • Tax-free growth
    • Non-taxable withdrawals
  • Plan for your children's and grandchildren's education.
  • Contribute the maximum: the returns are tax-sheltered.
  • Benefit from government grants:
    • The Canada Education Savings Grant (CESG): up to $500 a year, with a lifetime maximum of $7,200
    • The Québec Education Savings Incentive (QESI): up to $250 a year, with a lifetime maximum of $3,600 (additional grants possible under certain conditions)
    • Option of carrying over unused contribution room
  • Main features:
    • Tax-free growth
    • Regular instalments also available
    • Taxable withdrawals in the hands of the beneficiary
    • If the beneficiary doesn't use their RESP, you can transfer the income to your RRSP.
Tax benefits per plan
Plan RRSP TFSA RESP
Tax deduction S'applique    
Income splitting S'applique S'applique S'applique
Government grants     S'applique
Income tax deferral S'applique   S'applique
No income tax   S'applique  

Tax-sheltered plans: Higher savings, lower taxes (PDF, 480 KB)

  • Analyze your portfolio yearly to benefit from your tax losses:
    • Show losses to negate gains, or show earnings to use gains.
    • Apply the year's losses to the past 3 years and save on tax.
    • Remember that capital gains and eligible dividends are taxed at a lower rate than interest.
      Type of income and marginal tax rate (2013)
      Taxable income Salary and interest Eligible dividends Capital gains
      $75,000 38.4% 19.3% 19.2%
      $85,000 42.4% 24.8% 21.2%
      $95,000 45.7% 29.3% 22.9%
      $105,000 47.5% 31.8% 23.7%
      $135,000 50.0% 35.2% 25.0%
  • Opt for products with tax benefits:
    • Chorus II Portfolios
    • Income options – Desjardins Funds T-Class Units
  • Opt for investments that offer tax deductions and credits:
    • Shares eligible for the Stock Savings Plan
    • Capital régional et coopératif Desjardins
  • Include benefits to your personal remuneration:
    • Use of company car
    • Reimbursement of expenses
    • Some insurance premiums paid by the employer
  • Plan for income averaging mechanisms:
    • Bonus at retirement
  • Make tax-free withdrawals of funds, if needed:
    • from your company's capital dividend account
    • that you loaned your company
  • Split your income:
    • To take advantage of the lowest tax rate, certain processes allow you to split your income with family members.
    • This measure will be of particular interest to you if your income is significantly higher than that of your spouse (married or common-law).
    • Splitting can take place during your active life or at retirement. There are several income splitting processes:
      • Contributing to your spouse's RRSP
      • Granting your spouse a prescribed rate loan they can then invest in the investment product of their choice
      • Making a gift to your adult child
  • Medical expenses:
    • Combine medical expenses for the family.
    • Add:
      • private insurance premiums
      • the portion not covered by insurance
      • expenses not covered by insurance, but eligible under tax rules
  • Disability: receive a tax credit even if your disability is temporary (at least 12 consecutive months.
  • Natural caregiver: receive this tax credit if you reside with a disabled relative.
  • Moving: deduct these expenses while complying with the application conditions.
  • Philanthropy: optimize the credit for charitable donations by taking into account the total amount donated by the couple.
  • If, unlike you, your spouse is retired, split with them an annuity amount allowing you to use the deduction for retirement income.
  • One-person pension plan
  • Contributions based on the actuarial value of assets and on deductibles
  • Tax-sheltered returns
  • Make an excess contribution up to $2,000 (lifetime limit).
  • Make a gift of $2,000 to an adult child so they can invest it in an RRSP, even if they have no eligible income.
  • Main features:
    • Retirement capital accumulation
    • Tax-deductible contributions
    • Tax-free growth
    • Taxable withdrawals (exceptions aside)
  • As of 2013, contribute up to $5,500 a year (maximum $5,000 from 2009 to 2012) even if you've maxed out your RRSP.
  • Loan your spouse or adult children money to invest in a TFSA.
  • Main features:
    • Accumulation objective for retirement or various projects
    • Cumulative contribution room from one year to the next
    • Tax-free growth
    • Non-taxable withdrawals
  • Plan for your children's and grandchildren's education.
  • Contribute the maximum: the returns are tax-sheltered.
  • Benefit from government grants:
    • The Canada Education Savings Grant (CESG): up to $500 a year, with a lifetime maximum of $7,200
    • The Québec Education Savings Incentive (QESI): up to $250 a year, with a lifetime maximum of $3,600 (additional grants possible under certain conditions)
    • Option of carrying over unused contribution room
  • Main features:
    • Tax-free growth
    • Regular instalments also available
    • Taxable withdrawals in the hands of the beneficiary
    • If the beneficiary doesn't use their RESP, you can transfer the income to your RRSP.
Tax benefits per plan
Plan IPP RRSP TFSA RESP
Tax deduction S'applique
(corporation)
S'applique
(shareholder)
   
Income splitting S'applique S'applique S'applique S'applique
Government grants       S'applique
Income tax deferral S'applique S'applique   S'applique
No income tax     S'applique  

Tax-sheltered plans: Higher savings, lower taxes (PDF, 480 KB)

  • Analyze your portfolio yearly to benefit from your tax losses:
    • Show losses to negate gains, or show earnings to use gains.
    • Apply the year's losses to the past 3 years and save on tax.
    • Remember that capital gains and eligible dividends are taxed at a lower rate than interest.
      Type of income and marginal tax rate (2013)
      Taxable income Salary and interest Eligible dividends Capital gains
      $75,000 38.4% 19.3% 19.2%
      $85,000 42.4% 24.8% 21.2%
      $95,000 45.7% 29.3% 22.9%
      $105,000 47.5% 31.8% 23.7%
      $135,000 50.0% 35.2% 25.0%
  • Opt for products with tax benefits:
    • Chorus II portfolios
    • Income options – Desjardins Funds T-Class Units
  • Opt for investments that offer tax deductions and credits:
    • Shares eligible for the Stock Savings Plan
    • Capital régional et coopératif Desjardins
  • Learn about insurance strategies that can cover your tax liability in the event of death.