The 2007 maximum RRSP contribution is $19,000, meaning that you require at least $105,556 of earned income in 2006 in order to claim the maximum deduction. Those of you in the maximum tax bracket in BC can expect a tax reduction of about $8,300 if you make the maximum contribution next year. Earned income includes salary and wages, net business income, rental income and alimony less rental losses and alimony paid. There are also some small adjustments for certain other deductions. If you run your own business and you or your accountant are considering your salary/dividend level for 2006, don’t forget to take into account the maximum RRSP earned income level.

Please contact your accountant at Harvey, Lister & Webb Incorporated to discuss the possibilities.

Legal Notice: Information on this site is not intended for use without professional advice.