OTHER INVESTMENTS


NON-REGISTERED ACCOUNTS

Non-registered accounts are taxable investment accounts available to Canadian citizens. As the name suggests, it is not registered with the Canadian federal government. Non-registered accounts are flexible, offer tax advantages, and have no contribution limits. There are two primary types of non-registered brokerage accounts: cash accounts and margin accounts.


Cash accounts are investment accounts in which income is taxable in the year earned if there are capital gains, dividends, or interest income. A margin account is a type of cash account that allows customers to borrow money to purchase securities. This process is known as purchasing on margin.

Non-registered accounts are investment accounts offered by banks and financial service providers in Canada. Many financial advisors recommend using non-registered accounts for short and long-term investing. These accounts offer a lot of flexibility with consistent liquidity and no contribution limits, as well as a tax benefit.


Dividends are taxed on a gross amount but benefit from a dividend tax credit. Capital gains from investments in non-registered accounts are taxable at only 50% of the account holder’s marginal tax rate. However, interest income is fully taxable at the account holder's marginal tax rate.

Non-registered accounts can be used in conjunction with other types of investment accounts including registered retirement savings plan (RRSP) accounts.


REAL-ESTATE INVESTMENTS

Capital gains from investments in Real-estate are taxable at only 50% of the account holder’s marginal tax rate.


However, these investments can be set up under a corporation to enjoy tax benefits.

Some common types of Real-Estate Investments are:

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