The
purpose of the loan determines the deductibility of interest
for tax purposes.
Tax Reduction Specialists (T.R.S.) specializes in sourcing
investments that can be deductible against current taxable
income. The solution costs less than the taxes which would
have been due on that income. This results in a tax savings
from the exercise.
Because many of the tax deductions involve an investment,
tax rules allow interest on the borrowed money to be tax deductible.
Money recovered on your tax refund, (or tax not having to
be paid out), can then be used to retire your existing debt.
Usually, a strategy spanning 3 to 4 years can pay an existing
mortgage debt with tax refunds, and the new smaller line of
credit will be 100% tax deductible. The key to this is the
purpose of the borrowing (that it is for investment purposes).
Borrowing for an RSP is not deductible, as the contribution
is 100% deductible.
Why Tax Reduction?
It has been determined that for all forms of taxes, we work
until the second week of July every year until we hit ‘tax
freedom day’, when we get to keep the fruits of our
labor.
In Ontario, Canada, (National Office of Tax Reduction Specialists
is located there), tax on incomes above $35,500 is 32.1% on
every dollar earned up to approximately $75,000.
If you could reduce that tax liability by 30%, you would
save 9.6% -- much more important than worrying about paying
off a 5% mortgage (a debt which most people focus on as “The”
debt to pay off). In fact, the 9.6% is after tax. You would
really have to earn a return of 14.1% if you compared it to
a pre-tax investment such as a mutual fund.
In fact, putting a single dollar into a Registered Retirement
Saving Plan (RSP), or borrowing money to invest, will wipe
out 100% of the tax on the money you just invested/contributed.
Viewed otherwise, simply put, one dollar will get you a 32.1%
after-tax return by wiping out your income tax due, ONLY in
the middle income bracket. Ask yourself one question…
Is that better than paying off a 5% mortgage?
We need to think of tax as a debt – a debt paid annually
at VERY high rates. Nobody should have to have an outstanding
‘debt’ with an interest rate of close to 32% or
more.
Our solutions wipe out the 32 cents of tax due on each dollar
for as little as 18 cents. This way, you will have cash in
hand to pay off the 5% mortgage or the high interest credit
card that is causing you to lose sleep. See “Pay off
your high interest credit card and reduce tax with a low interest
loan” page for more information on this subject.
The best part of our solutions is that the money you get back
is *guaranteed by the Government* to come to you by way of
a tax refund 6-8 months after you buy the solution; 1-4 months
after you file your taxes!!
What’s the second best part? Our solutions can be financed
for only 3%-9% (C.O.B.) until the tax refund comes!!
And there’s more!! Click on the items below for more
information.
|
