PAGE 20, WEDNESDAY. DECEMIBER 10, 1980, WHITBY FREE PRESS DOULAR SEf$ Child's home savings plan can give Dad tax break By Murray Rumack, CA Do you have a son or daughîer aged 18 or over who la a fuli-time student but worked duri- the sum mer just ended? If so, and if he or she earned more than $2,000 in 1980, you may find you can- flot dlam that cbiid as a dependent on your 1980 income tai return and quaiify for the additional $990 personai deduction for a dependent child of 18 and over .- uniess you take steps before December 31 to make sure that you can. Ail you have 10 do is make a gift or a loan 10 vour chiid for the amount that be or she earned in excess of the aiiowabie îax.free mini- mum of $2,000, 10 be deposited in a Registered Home Ownership Savings Plan (RH OSP) in the child's name up 10 the maximum annual RHOSP contribution of $1,000. 1This is a perfectly legiti. mate device that brings a Dolla Sense offers general financWa advice by members of The Institute of Chartered Accountants of Ontario. v ariety of benefits, flnanc- il and otberwise. First, the chiid wiil be aiiowed to deduct the 'amount paid mbt the RIIOSP from bis or ber taxable income, bring- ing it down under'82,000 and aiiowing you 10 ciaimn the additional personal deductlon of $990. If you are in a 40 per cent tax bracket, tbis will bring you a direct tax saving of $406 -- whicb means you can give your cbild up 10 $406 for the RHOSP withoutîtilcosting you a penny. Second, and perhaps more important, is the fact that you wiii be making a soiid, cash contribution 10 your chiid's future security whiie at the same time rewarding him or her for having shown the initiative 10 work and earn. Every young working person in Canada shoùid have a* RHOSP. It is an invaluabie mneans of tax-free savin g toward a home, which in turn wiil aimost certainiy turn out t0 be the best investment your child wil m ake. Remember, bowever, that your cbild must be 18 or over 10 quaiify for a RHOSP. If your chiid is less than 18 îhink about going througb the same proced- ure but contributing 10 a Registered Retirement Savings Plan (RRSP). Your child can contribute up 10 20 per cent of his or ber earned incorn e toward an RRSP -- for which there is no minimum age -- and this might bring net income down beiow the maximum allowabie, enabling you 10 claim the child as a depen- dent. You should aiso remem- ber that a contribution to a RHOSP must be made by December 31 of the calen- dar year, although in the case of an RRSP you have Up 10 60 days after the end of the year to make the contribution. Chopper flying Santa Cia us Long gone are the days when Santa Claus would arrive in each town on a sied drawn by reindeer. A modernized Santa is seen here climbing down from his helicopter at the Whitby Mail with the heip 0f Mayor Rob Attersiey, Alderman Cy Eisey of Oshawa and Tony Lang, president of Tige, owners of the mail. Santa spent the day taking chiidren's christmas wishes in- side the mail before heading back to the north pole. -Free Press Photo by Stephen Greenaway D. THAPAR Dentre Therapist 214 DuWudo St. E-# WhltbY 668-7797 HOURS: Mon. - Set & Evsnings SV Appointment OnIy **125th ANNIVERSARY 1855-1980 THE CORPORATION 0F THE TOWN 0F WHITBY TO THE RESIDENTS0F THE TOWN OF WHITBY THE MAYORAND COUNCIL of the TOWN OF WHITBY SCordially invlted you and your family to attend an OLO YMCHRISTMAS PARTY to be held on Sunday, Decem ber 1t,18,at the Municipal Building, 575 Rossland Rd. E., Wh itby, f rom 2:00 p.nl. 10 4:00 p.m. There will b'e Entertainment, Santa for the Children' and a Sing-a-Long for everyone. Light lunch and Refreshments will be served. Children must be accompanied by an adu lt. R.A. Attersley, MAYOR 125TH ANNUVERSARY 1855-1980 .z HE CORPORATION 0F THE -~ TOWN 0F WHITBY WHITBY TRANSIT The Whitby Transit System will flot be in operation on Thursday, December 25th, Friday, December 26th, 1980 and Thursday, January lst 1980,-because of ýthe Christmas Holiday Season. R.A. Kuwahara, P. Eng., Director of Public Wrks i i lh *ter "*Éý mer *-mr.ýe ý ýý -eer4"( OCM %C