Understanding The Lingo
An "Eligible Investor" includes (but is not limited to):
An individual who either alone or with a spouse owns net assets (including real estate) exceeding $400,000 or
An individual whose net income before taxes exceeded $75,000 or together with a spouse exceed $125,000 in the two previous years and reasonably expects to exceed that level in the current years.
An "Accredited Investor" includes (but is not limited to):
An individual who, either alone or with a spouse, beneficially owns, directly or indirectly, financial assets having an aggregate realizable value that before taxes, but net of any related liabilities, exceeds $1,000,000; or
an individual whose net income before taxes exceeded $200,000 in each of the two most recent calendar years or whose net income before taxes combined with that of a spouse exceeded $300,000 in each of the two most recent calendar years and who, in either case, reasonably expects to exceed that net income level in the current calendar year; or
an individual who, either alone or with a spouse, has net assets of at least $5,000,000; or
a "person", other than an individual or investment fund, that has net assets of at least $5,000,000 as shown on its most recently prepared financial statements; or
“Person” includes
a. An individual,
b. A corporation,
c. A partnership, trust, fund and an association, syndicate, organization or other organized group of persons, whether incorporated or not, and
d. An individual or other person in that person’s capacity as a trustee, executor, administrator or personal or other legal representative.
An individual who either alone or with a spouse owns net assets (including real estate) exceeding $400,000 or
An individual whose net income before taxes exceeded $75,000 or together with a spouse exceed $125,000 in the two previous years and reasonably expects to exceed that level in the current years.
An "Accredited Investor" includes (but is not limited to):
An individual who, either alone or with a spouse, beneficially owns, directly or indirectly, financial assets having an aggregate realizable value that before taxes, but net of any related liabilities, exceeds $1,000,000; or
an individual whose net income before taxes exceeded $200,000 in each of the two most recent calendar years or whose net income before taxes combined with that of a spouse exceeded $300,000 in each of the two most recent calendar years and who, in either case, reasonably expects to exceed that net income level in the current calendar year; or
an individual who, either alone or with a spouse, has net assets of at least $5,000,000; or
a "person", other than an individual or investment fund, that has net assets of at least $5,000,000 as shown on its most recently prepared financial statements; or
“Person” includes
a. An individual,
b. A corporation,
c. A partnership, trust, fund and an association, syndicate, organization or other organized group of persons, whether incorporated or not, and
d. An individual or other person in that person’s capacity as a trustee, executor, administrator or personal or other legal representative.
RRSP / LIRA Eligible
Real Estate Syndication
Real Estate Syndication
Alternative Investments
TFSA Eligible
TFSA:
A Tax-Free Savings Account is a new way for residents of Canada to set money aside, tax-free, throughout their lifetimes.
Contributions to a TFSA and the interest on money borrowed to invest in a TFSA are not tax deductible. The income generated in the TFSA is tax-free when withdrawn.
RRSP:
A Registered Retirement Savings Plan or RRSP is an account that provides tax benefits for saving for retirement in Canada. RRSP refers to a provision in the Income Tax Act that allows a person to shelter financial property from income taxes.
Offering Memorandum (OM):
A disclosure document that provides the business of an issuer. This document is designed to help potential buyers make an investment decision when they are considering exempt-market securities.
Exempt-Market Security:
When an issuer distributes its securities under a prospectus exemption. Anyone in AB, BC or MB, regardless of their financial position can invest up to and including $10,000 in an exempt-market security. To invest more than $10,000, an investor must be either an 'eligible investor' or 'accredited investor'.
Accredited investors do not require Offering Memorandum disclosure documents to invest in 'exempt-market securities' or 'private placements'.
A Tax-Free Savings Account is a new way for residents of Canada to set money aside, tax-free, throughout their lifetimes.
Contributions to a TFSA and the interest on money borrowed to invest in a TFSA are not tax deductible. The income generated in the TFSA is tax-free when withdrawn.
RRSP:
A Registered Retirement Savings Plan or RRSP is an account that provides tax benefits for saving for retirement in Canada. RRSP refers to a provision in the Income Tax Act that allows a person to shelter financial property from income taxes.
Offering Memorandum (OM):
A disclosure document that provides the business of an issuer. This document is designed to help potential buyers make an investment decision when they are considering exempt-market securities.
Exempt-Market Security:
When an issuer distributes its securities under a prospectus exemption. Anyone in AB, BC or MB, regardless of their financial position can invest up to and including $10,000 in an exempt-market security. To invest more than $10,000, an investor must be either an 'eligible investor' or 'accredited investor'.
Accredited investors do not require Offering Memorandum disclosure documents to invest in 'exempt-market securities' or 'private placements'.