The federal and provincial grant you a tax credit for each
additional 15% when you invest in a labour fund.
Therefore, if you get 40% tax return on an investment in an RRSP
you can receive up to 70% of your investment. You just have to
invest in these funds from your RRSP.
The maximum allowed is $ 5,000.
Invest the tax return of your Labour Fund
You plan to invest the maximum $ 5,000. After verification you
know that you will receive $ 2,000 (eg 40% tax rate) back tax on
this amount. Plus $ 1,500 (2 times 15%).
Upon receipt of $ 3,500 ($ 2,000 + $ 1,500) you invest in an RRSP.
Your total portfolio is $ 8,500 for an initial investment of $
5,000 or 70% more.
Combine strategy and Loan Labour Fund
Push to the limit the above reasoning. Example, you plan to also
return the $ 3,500 tax you borrow too, etc. ...
The simple method to calculate the maximum that you can do is the
following. You decide to invest $ 3,500. Your tax return is 40% of
your investment.
Invest a total amount calculated as follows:
cash (60%) + Loan (40%) = Total (100%)
or
$ 5,000 (60%) + $ 3,333 (40%) = $ 8,333 (100%).
