Sentences with phrase «thus pay less tax»

The premise behind investing in an RRSP is that during retirement, you will have a lower income and thus pay less tax when you withdraw money compared to when you put the money in (and thus getting a bigger tax break).

Not exact matches

He adds that the mortgage interest you pay is tax deductible — by prepaying your principal, you'll pay less interest and, thus, get less of a tax write - off over the life of your loan.

Thus Canadians benefit from the fact that they pay less in taxes on withdrawals.

For example, at the moment with NG, if your annual gross rent is $ 10,000 and your total costs including depreciation is say $ 15,000, then you can use the additional $ 5,000 in expenses against your other income and thus reduce the amount of tax you pay for that year (if your marginal tax rate was say 30 % then you would pay $ 5,000 x 0.30 = $ 1,500 less in tax for that year).

He adds that the mortgage interest you pay is tax deductible — by prepaying your principal, you'll pay less interest and, thus, get less of a tax write - off over the life of your loan.

Thus, under the new tax rules, less alimony would likely be paid to correct for the loss of the tax deduction by the higher earning spouse.