Terra Tax Savings Calculator
Terra Tax Savings Calculator
Consult your Financial Advisor to ensure this investment is suitable for you.
Calculator Inputs
Taxable income is gross income (salary, bonus, pension or interest income, 50% of a capital gain etc.) less RRSP deductions, interest expenses, etc & exemptions.
Investment income for a CCPC includes interest income, foreign dividend income, rental income & taxable capital gains.
NAV on Redemption is the expected future value of the investment expressed as a percentage.
Cash Flow & Rate of Return | Year 1 Investment |
Year 2 Rollover 1 |
Years 3 - 5 Post Rollover |
---|---|---|---|
Investment | - | - | |
Annual Tax Savings 2 | |||
NAV on Redemption | - | - | |
Capital Gains Tax on Redemption3 | - | - | |
Cash Flow - $ | |||
Cumulative Return - $ | |||
Rate of Return - % |
Rate of return for is calculated as the total Cumulative Return for divided by the Capital at Risk in year 1 for .
1 Rollover is targeted for June in the 2nd calendar year. 2, 3 See following tables.
2 Tax Savings | Year 1 Investment |
Year 2 Rollover |
Years 3 - 5 Post Rollover |
---|---|---|---|
A. CEE & Other Deductions | |||
B. Average Tax Rate 4 | |||
C. Tax Savings - CEE & Other ( A x B ) | |||
D. Tax Savings - METC 5, 6 | - | ||
E. Tax Savings - CMETC 5, 6 | - | ||
Annual Tax Savings ( C + D + E ) |
4 Average tax rate is the average rate over multiple income tax brackets & determines the value of CEE & Other deductions.
5 METC is the federal 15% Mineral Exploration Tax Credit; CMETC is the federal 30% Critcal Mineral Exploration Tax Credit.
6 METC & CMETC are only available to individuals (and not corporations) and taxable as income in year 2.
3 Capital Gains Tax on Redemption | Year 2 Rollover |
---|---|
A. NAV on Redemption | |
B. Less: Eligible Capital Loss Carry Forward | |
C. Net Taxable Capital Gain ( A - B ) | |
D. Tax Rate on Capital Gain (50% inclusion rate) | |
Capital Gains tax on Redemption ( C x D ) |