TaxTip #13...
We still often see Canadians who are not investing their non-registered savings with an appropriate investment account.
It is important to understand that investment management fees are eligible to be claimed as a deduction when filing your income taxes.
However, MUTUAL FUND FEES are not eligible!!!
Therefore, if you are investing inside mutual funds and other non-"fee-based" investments you are missing out.
For example, if you have $100,000 invested pay your advisor 2.5% in regular mutual fund fees you are missing out on substantial tax savings. Up to $2500 worth!
In comparison by investing into a fee-based account you would be eligible to deduct the management fees and therefore reduce the taxes that you pay.
Such a small and simple subtle fact that all Canadians need to understand when investing.
