Tuesday, March 29, 2016

Income Tax...results!!


I just spent about half an hour on the horn with the folks at the Canada Revenue Agency (thanks for continuing to pay your taxes everyone - they help pay for my collect calls to our Nation's capital...ahem...) trying to clarify a couple of things.

I needed a new security code to sign in to my online account as I have no idea where the last one they sent me has gone to. On the way: check! One department.

The next department (which I was kindly transferred to) was the General Inquiries line to ask about my LLP. After a little misunderstanding on her end and a little miscommunication on my part, I'm thrilled that I can now reduce my overall debt owing by about $8,000. It seems that my LLP has been taken care at that end and is cleared up.

I'm not entirely clear on how, exactly, other than it was added into my income for 2013 and I was assured I don't owe anything on it anymore. My understanding was that if it wasn't paid off right away, then I had to roll over the remaining into my income until it was paid off. I didn't realise it was a 'one time' thing, so I have been consistently adding to my RRSP to pay it back annually, as originally organised.

Anyhoo, I'm still going to continue to add to my RRSP, but concentrate on the other two outstanding debts first (LOC & CC). It makes much more sense to take care of that if the LLP debt doesn't need to be taken into consideration at this point. The payments will be very slow, but steady, until after I've had my holiday at the end of the year and can focus more on the debt repayment. Once that's down substantially, I'll have money to start a retirement fund and emergency fund here, as well as hopefully saving for more (nearby) travelling.

I'm really happy right now!!!


2 comments:

The Asian Pear said...

That's great news re: the LLP. I hope you wrote down who you spoke to and advised you though. Just to be clear that they didn't misadvise you just in case.

Jane said...

Well that sounds very positive! I never had an LLP but I did have a...hmmm...can't remember what it was called but I withdrew my RRSP to use as a down payment on my condo and then paid it back over 17, yes, 17 years! It was just deducted off my refund each year so was relatively painless.
My brother stayed with me awhile this week after more eye surgery - he goes to Ireland EVERY year as his partner's aunt owns a home there. She doesn't live in it so it's empty most of the time. Anyhoo he's been recommending places to see though whether we'll be able to fit any of them in is questionable at this point. He hasn't been to the Connemara area yet but says its wild and beautiful beyond belief!