IMG Financial

Tax Planning


Navigating through income tax planning can be a bit like dealing with a persistent car oil leak—it’s tempting to procrastinate until it becomes a major issue. You might think, “It’s just a slow leak,” as you top it up with oil. But sooner or later, you find a sizable puddle on your driveway, disrupting your routine. Income taxes can sneak up on you in a similar way. The world of RRSPs, RRIFs, LIFs, TFSAs, JTWROS, and LIRAs might seem like an alphabet soup. However, We advisors can guide you through this complex terrain. We help you comprehend your investment options, navigate varying taxation rates, and seamlessly integrate them into your overarching financial strategy. As your asset portfolio grows, so does the intricacy of this process. Factors such as corporate ownership, trust beneficiary status, or involvement in a limited partnership can all influence your tailored tax plan.

At IMG Financial, we offer more than just income tax planning; we provide comprehensive investment tax planning services. Our advisors not only assist you in selecting the optimal investment avenues but also educate you on why certain alternatives may not align with your financial goals. Let’s navigate the complexities together and ensure your financial strategy runs smoothly, free from unexpected puddles.

Maximizing Returns, Minimizing Taxes

Taxes weave through life’s fabric, influencing earnings, spending, and investments. The Income Tax Act, a rulebook full of opportunities and challenges, calls for strategic planning.

Throughout the year, a Tax Advisor in Calgary can guide financial decisions, utilizing exclusions, tax credits, and retirement plans. The dance with taxes is a year-round affair, not just an April event.

As tax rules continuously shift, your financial choices echo those changes. These alterations impact income, credits, retirement contributions, and tax rates. Tax planning, a constant navigational guide, adapts strategies to the evolving tax landscape.

The heart of tax planning is maximizing income. Like a conductor orchestrating a symphony, tax planning aligns strategies—deferring income, optimizing contributions, managing gains, navigating property, and orchestrating charitable giving.

Know More


Unlock the potential of your savings with the Tax-Free Savings Account (TFSA). It’s not just an account; it’s a gateway to tax-free investment income. Here’s the lowdown:

The TFSA is a registered savings haven where taxpayers can watch their investment income flourish tax-free. Contributions don’t give you an upfront tax break, but the magic happens when you make withdrawals—neither your contributions nor your earnings are taxed.

Who’s eligible? If you’re an individual (excluding trusts), a resident in Canada, and 18 years or older, you’re good to go.

Now, about your contribution room—it’s a three-part harmony:

1. **Annual Maximum:** Each year, you’re granted the privilege to contribute up to the annual maximum. For 2020, that’s a sweet $6,000.

2. **Reclaimed Room:** If you made any withdrawals in the previous year, that amount adds back to your contribution room for the current year. It’s like a second chance at maximizing your TFSA.

3. **Unused Goodies:** Didn’t max out your contribution room in the past? No worries. The unused portion joins the party, boosting your contribution room for the current year.

Your TFSA can dance with the same investments as a registered retirement savings plan (RRSP). Picture it holding mutual funds, GICs, fixed income investments, and even shares of small business corporations.

Keep tabs on your TFSA contribution room—the Canada Revenue Agency (CRA) will do the math for you based on info from issuers. Just file your annual T1 individual income tax return, and let the TFSA magic unfold.


Let’s dive into the world of Registered Education Savings Plans (RESPs) and unlock the key to tax-deferred growth for your child’s future education. Here’s the breakdown:

**What’s in the RESP Pot?**
RESPs are like magical savings pots that grow tax-deferred until your beneficiary is ready for post-secondary education. The beauty? Little to no tax on withdrawals, thanks to nontaxable contributions and students enjoying lower income tax rates.

**Contribution Limits and the Grand CESG**
You’re looking at a lifetime contribution limit of $50,000 per beneficiary. But here’s the golden ticket—the Canada Education Savings Grant (CESG) lets your beneficiary receive a maximum of $7,200. The CESG is the government’s way of saying, “Hey, we’re investing in education too.”

For every dollar you contribute, the CESG chips in between 20 to 40 cents, depending on your income. A win-win as earnings grow tax-deferred, and the CESG adds a sweet bonus.

**The CESG Math**
The CESG starts at a minimum of 20% of your contribution, going up to a maximum of $5,000. The key? The beneficiary shouldn’t have maxed out CESG in the past.

**Income Matters**
Your family income plays a role in the CESG bonus. It’s like a sliding scale of extra grant goodness. Check out the latest figures on the CRA RESP website and keep your Canada Child Tax Benefit statement handy.

**Additional CESG Awesomeness**
Over the years, the government has jazzed up RESP rules. Now, more institutions, increased maximum contributions, and a higher lifetime limit give you more flexibility. If your child goes a different route than post-secondary education, no worries. You won’t lose all your earnings. Plus, you can even transfer interest to your RRSP. Check the CESG website for the latest scoop.

**Types of RESPs**
Are you into the scholarship trust vibe or prefer the self-directed approach? RESP plans come in different flavors, so choose the one that suits your family’s taste. They can be tailored for one child or cover the whole crew.

**Why RESP Trumps Regular Savings**
Investing inside an RESP is like having a financial superhero. The Canada Education Savings Grant can boost your education fund by a whopping 40% compared to saving outside an RESP. It’s like having extra powers for your contributions.

In the RESP arena, your $25 bi-weekly contributions over 15 years could turn into $18,790, thanks to the CESG magic. The same savings outside an RESP? A respectable $13,304 after tax.

So, why settle for less? Embrace the RESP magic, and let’s make that education fund soar!


Dive into the world of financial foresight with the Registered Retirement Savings Plan (RRSP) – your key to a secure retirement future:

**Unlock the Benefits of RRSP:**
Picture this – a retirement plan recognized by the federal government that you and your spouse or partner can fuel until the magical age of 71. RRSP contributions? They’re not just savings; they’re tax-reducing superheroes.

**Investment Avenues to Explore:**
Your RRSP journey opens doors to investment options like Mutual Funds, Segregated Funds, and the trusty GICs & Term Deposits. But, hey, if you’re eyeing other investment paths, our team is here to guide you through the unexplored territories.

**Spousal RRSPs – A Tax-Saving Dance:**
Enter the Spousal RRSP – a move that lets you direct your RRSP contribution to your spouse’s account, bringing tax-saving elegance to the dance floor. Why? Because income splitting during retirement is like a well-choreographed routine, ensuring funds are taxed at the lower rate.

**Navigate the Withdrawal Landscape:**
Retirement is a mosaic of choices, and RRSP offers flexibility. Choose the dance that suits you:

1. **RRIF (Registered Retirement Income Fund):** A rhythm of regular income payments to keep your retirement groove alive.
2. **Home Buyers Plan:** Looking to build or nestle into a new home? Let your RRSP join the homeowners’ symphony. Just a note – there are some melodies of restrictions.
3. **Lifelong Learning Plan:** For those eager to explore new educational horizons, RRSP steps in to fund training or education endeavors for you or your partner.

Thinking of cashing in your RRSP to embrace new beginnings? Connect with our office for insights tailored to your unique financial journey. Your retirement dance awaits!


Unleash the potential of your financial future with the Registered Disability Savings Plan (RDSP). Designed to empower Canadians qualifying for the disability tax credit, the RDSP has been a game-changer since its inception in 2008.

Here’s the key beat to this plan:

**RDSP: A Symphony of Savings:**
Unlike a traditional savings plan, RDSP contributions don’t grant you tax deductions, but the growth and earnings within the plan blossom tax-deferred. Picture this – a lifetime contribution cap of $200,000 for individuals with disabilities. And the bonus act? Generous government grants that dance into your RDSP.

**Grants and Bonds – The Stars of the Show:**
Meet the stars of the RDSP stage – Canada Disability Savings Grants (CDSGs) and Canada Disability Savings Bonds (CDSBs). Under 50? You’re eligible for these grants. Contributions until age 50, investments retained until 60 – the roadmap to maximizing benefits and steering clear of any claw backs.

– **CDSGs:** These grants waltz in, subject to an income test. Up to $91,831, they match your contribution with 300% for the first $500 and 200% for the next $1000 – a grand entrance with a maximum annual entitlement of $3500. Even with higher income, you get 100% on the first $1000 each year, doubling your contribution. Lifetime CDSG grant? A show-stopping $70,000.

– **CDSBs:** The bonds – no contributions required. An encore, you could say. Income up to $30,000 qualifies for $1000, with a sliding scale up to $40,970. Above that? The stage goes silent. All income levels dance to the inflation tune annually.

**RDSP Benefits Take Center Stage:**
What sets RDSP apart?

– Disability benefits remain unscathed by RDSP investments.
– Inheritances find a significant home in RDSP without disturbing disability benefits.
– Government grants – a generous supporting cast.
– Growth in the limelight of tax shelter.
– A choreography of mutual funds with flexibility.

To unlock the full rhythm of grants and benefits, partner with your financial advisor. The stage is set – let the RDSP take your financial performance to new heights!


Unlock the full potential of your RRSP with the strategic power of an RRSP Loan. It’s not just about the immediate tax refund – it’s about amplifying your investment game.

Here’s your backstage pass to the advantages:

**1. More to Invest:**
Borrowing injects a financial booster shot into your RRSP. It’s not just about meeting the contribution threshold; it’s about surpassing it, giving you more firepower for your investments.

**2. Tax-Sheltered Compounding:**
Imagine your investments compounding in a tax-sheltered haven. An RRSP Loan lets you harness this compound magic, amplifying your returns as your investments flourish in a tax-friendly environment.

**3. Boosted Returns:**
This isn’t just about a loan; it’s a turbocharge for your returns. With borrowed funds amplifying your investments, your returns get a power-up, helping you achieve your financial goals at warp speed.

**4. Swift Journey to Goals:**
An RRSP Loan is your express ticket to reaching those long-term financial goals faster. It’s not just a loan; it’s your accelerator for financial success.

**5. Larger, Diversified Portfolio:**
Ever dreamt of a retirement portfolio that’s not just substantial but diverse? An RRSP Loan turns that dream into reality, helping you build a retirement nest egg that’s both larger and more diversified.

**Is an RRSP Loan Right for You?**
Consider this your financial tuning fork:

– Do you want to contribute now but lack the funds? Tune in.
– Is your unused RRSP contribution room a missed opportunity? Tune in.
– Have you stepped up a tax bracket from last year? Tune in.

**Features of the RRSP Loan Symphony:**

– A low-interest serenade.
– A flexible repayment melody (up to 10 years).
– Deferred payments – take a breath, up to 90 days.
– No early repayment penalty – it’s your financial solo.

The final crescendo? Contact our office, where we’ll conduct a symphony of RRSP Loan options tailored to your financial score. Your encore to financial success starts here!



Ever heard of the saying, “Sometimes you gotta spend money to make money”? That’s the essence of leveraged investing, a strategic move where you borrow funds to finance your investments. It’s like giving your money a turbo boost, but with great power comes great responsibility.

Whether you’ve used credit lines for investing, borrowed to fuel your RRSP contributions, or bought securities on margin, you’ve danced with leverage. It’s not just individuals; even companies leverage up their investments.

Leverage isn’t a one-way street. It’s a symphony that magnifies both gains and losses. Picture this: your wins get an amplifier, but so do your losses. If you’re going down this road, you need a stomach for risks and a solid plan.


**1. Suitability and Responsibility:**
Leverage is a powerful instrument. It should sync with your investment goals, risk tolerance, and the “Know Your Client” info you’ve shared with your advisor. It’s a duet, and both sides must harmonize.

**2. The Risk Rhapsody:**
Let’s talk risks. Consider borrowing to invest only if:
– Risk doesn’t keep you up at night.
– You’re ready for an investment rollercoaster.
– You’re in it for the long haul.
– Your income is as stable as a rock.

**3. The Symphony of Losses:**
A minor chord: Your investments take a downturn, and you’ve borrowed money. Brace yourself; your losses amplify. You might have to sell assets or dip into savings to settle the loan.

**4. Tax Tango:**
Don’t borrow just for a tax break. Interest costs aren’t always deductible. Consult a tax pro before diving into the world of borrowed funds.

**5. Deductibility Duet:**
Tax deductibility plays a role. Interest on borrowed funds for non-registered investments is deductible as long as you hold the investment or a substitute. It’s like a tax waltz that you need to keep in step with.

If you’re borrowing to invest, think of it as composing a financial symphony. Each note (investment) contributes to the overall melody. It’s an intricate dance, and your advisor should guide you through the steps.

Leverage isn’t for everyone, and the risks are real. It’s like playing with fire – exhilarating, but you need to know when to cool down. Ready for the leveraged investing overture? Let’s talk.