How do flow-through shares work as a tax-saving investment for RRSP contributors?
How do flow-through shares work as a tax-saving investment for RRSP contributors?
Flow-through shares allow investors to benefit from deductions tied to resource exploration costs, thus reducing tax burdens, which is particularly advantageous for those with full RRSP contributions.
By investing in these shares, you can potentially lower your taxable income by the amount invested, providing significant tax savings. This makes them an attractive consideration, especially for higher-income individuals looking to offset tax implications.
However, it's essential to understand that the value of flow-through shares is subject to market fluctuations, and they may not be suitable for every investor.