Registered Education Savings Plan Essay | Essay

This student essay consists of approximately 2 pages of analysis of Income Tax Reduction.

Registered Education Savings Plan Essay | Essay

This student essay consists of approximately 2 pages of analysis of Income Tax Reduction.
This section contains 490 words
(approx. 2 pages at 300 words per page)
Buy the Student Essay on Income Tax Reduction

Income Tax Reduction

Summary: Better understanding of a Registered Education Savings Plan (RESP), Registered Retirement Savings Plan (RRSP), and capital gains income taxation can help to significantly reduce your taxes.

The following report will explain in great details three ways in which one can minimize their tax by evaluating each of its pro's and con's. The following that will be discussed is Registered Education Savings Plan (RESP), Registered Retirement Savings Plan (RRSP), and capital gains income taxation.

Registered Education Savings Plan, or RESP, is a tax-deferred plan usually set up by family members to help save money for a young person's post-secondary education. The advantages are that all the income earned in an RESP can accumulate tax-free until it's withdrawn. Aswell, when it is withdrawn for educational purposes, only the growth is taxed in the child's hands, so there is little or no tax payable. Aswell the government gives 20% extra up to a maximum of $2000. The disadvantages are that the maximum savings is sometimes insufficient to pay for cost of university and if a child decides not to...

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This section contains 490 words
(approx. 2 pages at 300 words per page)
Buy the Student Essay on Income Tax Reduction
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