The B.C. Government operates the Equity Capital Program ("ECP") under which it offers tax incentives for qualifying investments. Rimfire iMedia is qualified under the program, and all investments in Rimfire receive a 30% Tax Credit. While it is called a Tax Credit and is realized through your Income Tax Return, it is in fact an investment rebate and has nothing to do with your taxable income.


Tax Strategies Using Our VCC Product


Rimfire iMedia (VCC) Corp. is currently being offered for purchase at $.75 / share, and can be used in the following tax strategies:

VCC Purchase And RRSP Contribution - Asset Accumulation

This strategy can be effectively deployed during an individual's Asset Accumulation stage.

Sample VCC Purchase Amount - $10,000.

A sample VCC purchase of $10,000 will yield a B.C. Tax Credit of $3,000. If the securities are contributed to an SD RRSP producing a reduction of $10,000 in Taxable Income for the year, this can create up to 43% or $4,300 in reduction of tax payable.

Together, the $3,000 Tax Credit + $4,300 Income Tax reduction = $7,300 in invest cost recapture - or 73% - in the first year, covering the majority of the investment cost.

 

VCC Purchase And Cash Swap - Savings Utilization Without Portfolio Depletion

This strategy can be effectively deployed during an individual's Asset Utilization stage, usually later in life.

Sample VCC Purchase Amount - $25,000.

A sample VCC purchase of $25,000 will yield a B.C. Tax Credit of $7,500. The securities can then be sold to your SD RRSP to bring $25,000 out tax exempt, covering the cost of the investment. You are left with a net gain of $7,500 in cash in your pocket.

Should the Book Value of the investment go up over time, a greater amount can be brought out of the SD RRSP without Income Taxation, but a reduced Capital Gain on the increase in Book Value.



Rimfire iMedia (VCC) Corp. is currently selling its shares at $.75/ share. Please go to Investments to see more details on its current offering.

 

 

Please go to Contact Us if you wish to discuss these strategies further.



Copyright © 2007 NetEquity  All rights reserved.