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Old 01-29-2007, 11:03 PM   #12
fille
Everyone wants a piece of R S...
 
Join Date: Oct 2004
Location: bc
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Dividends are a great tax- strategy, but capital gains are tax- deferrable

There are 3 main types of 'income' possible from an investment in Canada:

1) Interest -- taxed at your highest marginal rate.
2) Canadian Dividends -- Taxed at a very low rate, in fact, almost tax-free until your income hits $60,000/year or more.
3) Capital gains -- taxed at one half the highest marginal rate, but deferrable.
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