The Home of Tail Wagging Tax Opinion Pieces

Tax Planning For Bloggers

Blogging can be considered a relatively new type of business industry as the government wants to tax online businesses. When a blogger creates a blog in order to gain business income, figuring out what can and cannot be deducted from your taxable earnings can be a daunting experience. Since the industry is fairly new, the rules can be pretty confusing for someone who is claiming this type of income for the first time. Please see the following list of expenses that can be claimed on your return (if they make sense in your situation of course) along with a few items that probably should not be claimed unless it makes sense in your particular case. In order to achieve the maximum legitimate tax savings, is of course, to hire an expert to help analyze your individual scenario. Here are some examples that may apply to most bloggers.

The following are claimable:

Hosting fees, internet access fees, blog template and design fees are all part of running an internet-based business and can be deducted. There may be times that design fees should be capitalized such as if the templates designed are going to be used for many years to come (though this is hard to determine so most people probably just expense it).

Domain name registration fees, trademarks and patents are considered eligible capital property but they depreciate yearly. I would make the argument that yearly domain fees are charged on a subscription basis rather than being an asset.

Computer software such as Adobe Photoshop can be considered capital in nature. The depreciation rate is 100% and is subject to the half-year rule, which means you can only claim half the cost in the year of purchase. Please note that some software changes year after year and as a result an argument can be made for expensing it as opposed to capitalizing it.

Ads purchased to promote the blog (such as facebook ads for example) or money spent on SEO services, can be deducted from earned revenues. You can also deduct items that you buy for prizes to give away on the blog as part of contests and promotional giveaways.

If you use your home as your principal place of business, you can claim a portion of home expenses (insurance, property taxes, mortgage interest). The amount you can claim depends on the percentage of the total square footage of your home that you use for business. If you aren’t exclusively using the space for business, the amount you claim must also be prorated based on the amount of time you use it for business. This rule applies to any home based business – common sense applies.

Blogging equipment such as smartphones, laptops, or cameras are capital assets that you can be claimed on your return. However, you will have to deduct the cost of those items over a period of several years as the value of the asset depreciates.

Things that should not be claimed (unless they can be justified):

Outfits you photographed for the blog can seem like something you may be able to write-off, but this is not the case. It may be able to be claimed if it a uniform or a costume and is only used for business purposes, such as promoting the blog itself. Most clothes and accessories you buy and wear in everyday life cannot be deducted as an expense. People should take caution when making these types of claims although I have seen some fly such as the Remax Realtor who has the Remax logo embroidered in a few of his suits but again this may be a one off.

Unless you are a fitness blogger and can prove that your gym membership is a business expense, gym and other fitness fees are not tax-deductible. I would tend to be careful with this one as a fitness blogger may use the membership for personal purposes as well.

You may feature your pet on the blog or other mediums such as Instagram, but any animal-related expenses such as doggy daycare fees and pet insurance cannot be claimed.

While professional association memberships are tax-deductible, you cannot deduct club membership dues (including initiation fees) if the main purpose of the club is dining, recreation, or sporting activities. Please note that this applies to all other business types as well.

When saving receipts for your blogging business, you should consider it a business first and foremost which means applying the rules the same way and asking yourself if the expenditures make sense. Common sense needs to be applied to what is claimed.

Like any other business it is important to keep track of all revenues and all expenses and bookkeeping is very important.

It’s Time to Stop Raising The Minimum Wage

Many people like to argue that people should have a living wage to boost them out of poverty. It is clearly evident that poverty is a concern to many and that there needs to be a solution – which I do agree with. However, I do not believe that raising the minimum wage in itself is the solution. There are a few fundamental reasons for this.

The minimum wage increase has actually killed jobs since people are going to want more experience from their workers to justify the higher wage. This could be one of the reasons it is becoming more and more difficult for people to get entry level jobs. Businesses would have to hire fewer people in order to maintain the same level of profit or sustainability year after year.
It kills the incentive to work harder, why should people work harder when new staff are getting paid close to what the senior staff make (depending on industry of course).
An increase in itself does not necessarily reduce poverty as it seems to be pushing the cost of products and services up since businesses have to find a way to be able to sustain the new wages plus ever increasing expenses when they have to pay for their materials and services as well (in most cases, these costs are passed on to the customer).
The government is getting more tax dollars – just because a person makes more, does not mean that they get to keep more. The increase in wages just puts more people on the tax roll since benefits and credits have not been reflected by the change in wage. For example, if a person makes more, they contribute more to Canada Pension Plan (CPP), Employment Insurance (EI), and personal income tax.

I would actually like to propose a different idea – now that wages are around the $15.00 per hour mark, I guess we have to leave it as people have grown accustomed to it. Instead, I would propose something like this for example, instead of raising the minimum wage, raise the minimum tax exemption to around $25 000 both provincially and federally so that people are able to keep more for their basic needs. I would also raise the CPP exemption to around $12 500 from the $3 500 that has been the case for a long time. We know that most people make more than $3 500 a year. I believe this since CPP is just another tax of around 5.25% on people’s earnings over $3 500. I believe that CPP is okay, but that different things can be done to make more efficient use of it, Please refer to my post ” Canada Pension Plan: Should the Canadian Government be Responsible for Your Retirement? If Yes, There Has Got to Be a Better Way for further reading.

I believe that the above approach would work better than just hiking the minimum wage. Even with the increase of minimum wage or a different solution, some people may always be in poverty – which is no one’s fault but the individual. For example, smoking, drinking, and gambling may be some habits that are competing for valuable dollars versus one’s basic needs and the government knows it so that is why they choose to tax drinking and smoking (it is not the government’s business what people like to spend their money on nor should the rest of society have to pay needlessly for other people’s habits). As a result of this position, I believe that the government would be providing a helping hand rather than a hand out. Then again, I am not advocating an increase in minimum wage, but instead of a minimal amount that people can keep and do what they want with (hopefully keep themselves out of poverty). A side note: I am not advocating for a $25 000 basic income in terms of being entitled to this money without working for it, but money that a tax payer is entitled to keep if it is earned income. I personally believe that the type of solution that I propose would be the beginning of a permanent solution rather than just a band aid solution such as raising minimum wage without changing anything else.

Go Away Green Card – Don’t Bother Me

Many Canadians come back to Canada after a prolonged stay in the US for their own reasons but when they do, many simply let their Green Cards expire if they have one thinking that their American tax obligations will just expire along with the card. This, in itself is not true.

The process to surrender your green card, also known as Lawful Permanent Resident (LPR status) is actually straight forward. A LPR must contact a local U.S. embassy or consulate and make an appointment. The embassy or consular official will provide USCIS Form I-407, Abandonment of Lawful Permanent Resident Status. Upon receiving the form, it must be filled out and submitted.

An I-407 form allows a legal permanent resident to officially abandon their status. You would need to submit it to a U.S. embassy or consulate in your area, as well as your actual green card, there is no fee for this.

A consular officer will conduct an interview to make sure that you fully understand the consequences of giving up U.S. residency, and that you are doing so voluntarily. You will get a copy of your form I-407, this will help you in the future if you’re applying for a U.S. visa or entry, to avoid confusion about your earlier status.

There is actually another way that one is able to relinquish his or her green card. A person can actually file Form 8833 “Treaty claim of residency in another country” – Under the Canada-U.S. Tax Treaty, one can take a treaty – based position that they are a nonresident of the U.S. for tax purposes. In order to dispose of the green card in this manner, the tax payer must file Form 1040NR with the Form 8833 attached to inform the IRS that he or she is making a treaty election to be taxed as a nonresident alien as a result of becoming a resident in the named treaty country. A side note: Technically Form 8833 is not required if payment or income items on the tax return are $100,000 or less, but in order to eliminate questions or concerns during a review, the Form 8833 should be filed.

Although it sounds simple to relinquish your green card – it might have some other undesirable consequences, so it is probably a good idea to seek out competent legal and tax advice before making the decision.

Esmeralda Buys US Property

Esmeralda has come to a landmark decision – on top of her gambling, she chose to invest in real estate to diversify her portfolio. She was also getting sick of staying in hotels. In order to avoid hotels – she went out and bought a house where she has decided to stay when she gambles or when it gets too cold for her up in Canada.

She wanted to discuss tax implications of owning a rental property since she already got a shock with her winnings. I told her that she would have to pay the US tax of 30% on her Gross Rental Income (you do NOT get to deduct expenses) – she would not have to file a 1040NR for the rental alone. However, since she is a compulsive gambler and will want the taxes on her winnings anyways, she may as well file the 1040NR.

If you have never gambled in the United States or filed a tax return in the US, you actually need an ITIN ( Individual Taxpayer Identification Number) to file the 1040NR. For information on the application process please refer to my post “Esmeralda Wants Her Money Back”.

Most people do not like paying 30% to the United States on their rental income. Esmeralda doesn’t like that idea either. In order to avoid paying 30% it is sometimes beneficial to elect to have the rental income treated as “effectively connected” to the United States. The election allows for 2 main things – First, you are taxed at the marginal tax rates instead of the 30% and Secondly, you are taxed on your Net Rental Income (the big difference being, you get to deduct your expenses).

In order to make the election, you need to write a letter and attach it to the tax return. In practice most people just file the 1040NR their first year with the rental schedule attached. The IRS has now added a new Box M on Page 5 of the 1040NR (Schedule OI – Other Information). The first year that the 1040NR is filed you need to check off box 1 if you want to make the election. In future years, make sure to check off box 2. If the IRS wants a letter highlighting the fact that you are making an election – there are some specifics that need to go into it.

The letter / statement must possess all of the following information:

That you, the tax payer want to make the election;
A complete list of all of the real property (you cannot decide to elect some and not others), or any interest in real property, located in the United States (including location). Give the legal identification of U.S. timber, coal, or iron ore in which the taxpayer has an interest;
The extent that you own the property (if there are any partners);
A description of any substantial improvements to the property (used to calculate the starting basis of the property);
Income from the property (if partners, including spouse – your portion);
The date(s) property is owned;
Whether the election is under section 871(d) or a tax treaty;
Details of any previous elections and revocations of the real property election.

Once you make this election, it is not revoked in future years unless you decide to revoke it. If you acquire new property, you will have to up date the list (you should have one in your records in case the IRS wants to see it). There is a deadline for making the election,the 1040NR is normally due by the June 15th of the year following the calendar year the property was acquired. However, the ability to elect to treat the rental income as effectively connected with a U.S. trade or business will be lost after 16 months from the original due date of the return. If the election is not made in a timely manner, you may get stuck paying the 30% instead.

There are a few things that must be mentioned here – even if your partner is your spouse – both of you will have to file a 1040NR, separately. When claiming your expenses – you MUST claim depreciation (this is a big difference when compared to Canada). Many of the expenses claimed in Canada on a rental property can also be claimed in the US – the main difference is the previous point. I think the IRS’s reasoning for this is they want to potentially recoup some of their money once the property is sold. You may also have to file a State tax return, depending on which state you are in.

Esmeralda must also claim this income in Canada on her Canadian return. I do not know how many times that I have heard – “My rental is in the States so I don’t have to declare it”. It actually does have to be claimed on your Canadian tax return, including when you actually sell the thing. When claiming in Canada, you do not have to claim depreciation on the Canadian side. If a profit is made on the rental income – you may be able to claim a foreign tax credit so you are not taxed on both sides of the border. As well, if the property is over $100 000.00 and you are using it as a rental, you must report the property to Canada on T1135 (Foreign Income Verification Statement). I will explain to Esmeralda about the T1135 and why it is so important in my next post.

The Disability Tax Credit – Do It For Yourself

There are many unscrupulous companies in Canada that act like the Disability Tax Credit (DTC), is a huge unknown secret and they can secure you extra money on your taxes if you qualify. In truth they are partially correct – in the way that if you qualify for the DTC you do qualify for additional money when filing a tax return (conditions apply) and that they can secure you money. Here is an even bigger secret – you can actually apply for the DTC yourself and not have to give one of these companies a cut of the money you may be entitled to. Most of these companies actually take a cut of 25 – 35% once you have been approved and Canada Revenue Agency (CRA) refunds your money. When talking to them they actually try to justify their “cut” by saying that they have to collect all of the information. In short, fill out the first page of the Disability Tax Credit application form (T2201) and send the rest of it to your doctor (once you tell them who your doctor is) to fill out the rest and send it back to them (by fax, email, or mail) so that they can submit it to the CRA on your behalf.

I am sure that you may have seen some of the ads on social media websites saying that you may qualify for up to $35 000 or up to $50 000 etc. Please note that this is not necessarily a scam but a lucrative business since the application can be applied up to ten years back. I have seen a few cases where some of my clients have gotten $10 000 to $15 000 refunded but please keep in mind that each case is unique. The point is when using the $10 000 example is why should you pay someone between $2500 and $3500 give or take when you can do it for yourself. It is kind of heartbreaking when many of the people who take advantage of this offer is low income seniors and people who are of lower income in general. While I agree with the fact that people should get paid something for their time – some of the cuts being requested are very high for what is truly being done. It is also a known fact that many more people will qualify for this “credit” as time goes on due to our aging population.

Some people try to justify their own laziness (after they learn about what is involved) by saying to themselves – if I didn’t go to them I wouldn’t be entitled to this money anyways. Stop doing that – stop supporting companies that pray some of the most vulnerable members of our society. If you are one of these people for any reason and you paid in to the system you should apply to get your money back. All of it.

Important Disclaimer: Regardless of whether you apply for it yourself or through one of those third party services the result will, in nearly every case be the same; if you qualify, you qualify, and if you don’t you don’t. These third parties do not work directly for CRA in most cases. As a result, there services offer no additional benefit or credibility aside from the convenience of not having to do it yourself.

Here are the steps to follow to apply for the Disability Tax Credit if you feel that 25 to 35 percent of your own money is too much to give up.

Get a copy of the Disability Tax Credit Application – this is as simple as going on google and searching T2201 and printing it off.
Filling out the first page with your personal information and answering the questions. There is even a box that says ”
Yes, I want the CRA to adjust my returns, if possible” – sometimes they will actually refund you previous years without having to do the adjustment. (Section 3)
Take the application to your doctor and have them fill it out. Have them provide as much information as possible, even if it is sending additional reports. A doctor may charge $100.00 for this – it can be claimed as a medical expense.
Mail it to the address given in the application or have the doctor mail it.
Wait for a response which can take a few weeks or a few months – if the CRA rejects it you can appeal the decision or they just may want more information.

Chances are that if you read the post to the end and believe that you qualify, you are perfectly capable of applying for the DTC yourself, and dependent on your situation it may very well be worth it.

In my next post about the Disability Tax Credit – I will explain why some people do NOT get money even if they have the claim on file.

Would You Rather Pay Tax on the Harvest or the Seed?

A question that may come to mind when one is debating on what is the better registered investment vehicle, the RRSP (Registered Retirement Savings Plan) or the TFSA (Tax Free Savings Account) is “would you rather pay tax on the harvest or the seed?”. When looking at the tax deferral aspect of the RRSP, some may say that what good are RRSP’s you pay tax on them when they come out – that’s true but if used properly they come out at a lower tax than when you contributed to them.

For example using today’s numbers. (Assume a taxpayer in Alberta with $120 000.00 in gross income, rate being used is 26% Federal Tax and 10% Provincial Tax).

Joe Albertan contributes $1000.00 when he is in the 36% tax bracket, he would reduce his taxes by $360.00. When he draws it out years later, let’s say a $1000.00 withdrawal in the 25% tax bracket, he would pay $250.00 on this $1000.00 – in this example, he comes out ahead by $110.00 – we are not even factoring in the deferred growth on investments held within the RRSP (the harvest).

On the flip side of the coin using the same numbers.

Joe Albertan decides to contribute the $1000.00 into his TFSA instead. He would pay the 36% tax or the $360.00 and would contribute $640.00 to the TFSA in after tax dollars (the seed). The growth on the $640.00 would never be taxed again (under today’s laws).

It is hard to argue definitively on which vehicle is better because it all depends on the individual’s current tax situation – it is not a one size fits all position. The RRSP would not be of any use to an individual if he or she is in a lower tax bracket now and a higher one when the money is needed, and the TFSA does not offer any tax deferral in the present to those that are in a higher bracket now than they will be in the future. In my personal opinion, if you are in a higher income bracket, it may be best to use both vehicles as the RRSP allows you to save from the first dollar earned (dollars before tax) and move the refund – if any to the TFSA as it is funded with after tax dollars. It is also important to know that each registered vehicle comes with it’s ups and downs which will be summed up in a different post, but based on tax alone “Would you rather pay tax on the harvest or the seed?”

Escape from the Isle of the Lost: Warning May Contain Spoilers***

The forth and final book did an excellent job of setting up for the 3^rd and final Descendants movie. As usual, the book was fun to read and added more explanation to the Descendants world as a whole. I must admit that this book was not as well written as the lead in to Descendants 2, “Rise of the Isle of the Lost”, but still served its purpose. This book seemed somewhat rushed compared to the others.

This book does an excellent job setting the stage for the new characters of Hades and Celia. It also expands on what Uma has been up to since Descendants 2. It is evident, when reading about Uma that she actually did miss her crew, or dare I say her friends. I believe that the introduction of Hades was done very well since it gave the reader a glimpse into what his life was like before he got banished as well as how he had tried to escape the Isle a few times. I like ho Hades is introduced and the following can sum him up – “one of the miserable wretches on the Isle of the Lost is none other than Hades. He too lives on rotten food and wicked dreams but unlike the other villains, who became ageing losers. Hades is a rock star”. I think that Del La Cruz did a reasonable job with the creation of Celia, though it doesn’t appear that Celia is too evil – a trickster maybe but not necessarily evil. It seems that Celia actually wants to go to Auradon.

This book did something that none of the others (books or movies – though little detail was given in Descendants 1) have, it clearly establishes the ages of the characters. Mal, Jay, and Evie are graduating seniors, which means they are 18 or about to be 18. This helps me understand the opening scene of Descendants 3. Carlos and Jane are juniors, which means they are 17 or about to be 17. This is important as the VK’s have been in Auradon for two years. I guess it can be assumed, for those who have a keen sense of detail – that the ages of Mal and Ben are given in the first movie as we know Ben is 16 at the time and he states in the dating scene that they (Mal and Ben were the same age).

One of the major themes in the book has to be – life is going to change when you grow up. This is illustrated a few ways such as the villian kids “VK’s” growing apart and doing their own things. Mal, becoming more a lady of the court – the future queen of Auradon, Evie continuing to make money with the fashion business, Jay deciding if he wants to go to college or become an international ROAR star. Since Carlos is a year younger, he is now spending a lot more time with Jane.

The character development of Mal is always good to see. In this book, the reader is able to see that although she takes her duties in Auradon seriously, she still does not have the heart to turn her back on her history. This is shown when she wants to make a special trip to the “Isle of the Lost” while she is out touring Auradon and learning about it’s different peoples – she is not afraid to speak up when the Isle is left off of the list of the places to visit.

I believe that Jay had showed maturity when deciding on a college with his selection process as he gave serious thought to where he wanted to end up. I think it was clever that Jay did not go to Agrabah State University as he was concerned that his father’s (Jafar’s) reputation would follow him around and he wanted to be his own person without the stigma of his father overshadowing him. This shows the reader, at least in my opinion that Del La Cruz wanted to show the reader that decisions aren’t always easy even though there was part of Jay that wanted to return home.

As always, Disney was very creative with references throughout the book. For example, I liked the names of the colleges like Agrabah State University (ASU), Magical Institute Training (MIT), and Sherwood Forest University. I find it interesting that the letters of the first two colleges are the same as well known colleges in the United States of America, they go along nicely with the whole “United States of Auradon” theme. They further continue the whole theme with the reference to the all important SAT (Salagadoola Abracadabra Test).

Mal decides to go to the Isle as a representative from Auradon to focus on the growth of the Villain Kid (VK) program. I think overall the adventure to recruit VK’s was an important element of the book as the four reformed VK’s had to show growth when thinking about how to recruit. I liked the fact that Mal and company got no results when they were trying to shove Auradon culture down people’s throats – this highlights the theme that not everyone thinks they are bad just because they are not the same. It also shows in a silly way that you can not just march into someone’s country and change their values overnight (naturally Del la Cruz probably did not want to focus on this theme as it is not fun, but changing people’s values and belief systems can actually be seen as core to their recruitment process). I actually thought it was clever when they came up with the concept of Villain Kid (VK) Day as it actually caters to the market that they are trying to recruit. Villains like to feel famous and important – mind you so do people who are not necessarily evil. It appeared that after VK Day was announced, people actually felt that going to Auradon was actually a big deal. The whole adventure shows the reader that not everything is black and white as the VK’s got more results when they actually thought of what other VK’s felt rather than telling them what they want.

I also like the development of Hades relationship with Uma or should I say there doesn’t seem to be much of a relationship because Hades and Uma do not necessarily see eye to eye. There are times when it appears that Hades may think that Uma is an irrelevent little girl. I kind of got that impression.

As for the rest of the book, it just goes on to say what has happened leading up to the graduation and after the graduation and served as further filler – not necessarily a bad thing in this case – to allow the reader to learn more about Auradon and its culture of goodness. As always, I believe that the books should have been turned into a mini series which was available to watch – though the books are good too as it leaves a little bit to the imagination.

In my next post, I will evaluate how Descendants 3 ties everything together for a successful completion of the series.

4/5

In Defense of the Registered Retirement Savings Plan (RRSP)

It is a known fact that many people do not like the RRSP and some even go as far as to say that they hate the things. Even accountants hate them – they always say that a dollar today is better than a dollar tomorrow yet when the question “how can I reduce my tax bill comes up” the default answer is often “contribute more to your RRSP”. A dollar today is often better than a dollar tomorrow but you also want to have a dollar tomorrow for retirement and everyone knows deep down that the Canada Pension Plan (CPP) and Old Age Security (OAS) will not necessarily provide you with a good retirement, if they exist when it is your turn to retire.

The RRSP does have its place in your tool box – it creates a deduction against your net income, a deduction not a credit. For people in a higher tax bracket this makes a difference – please refer to my previous post “Deductions and Credits: The Difference” for clarification if necessary. I will emphasize on what I believe to be the key point by using an example of an individual in the 30.5% tax bracket living in Alberta who has invested $1000.00 (The rate is 10% in Alberta and 20.5% Federal) versus the lowest rate in Alberta of 25% (10% Alberta, 15% Federal).

If you are in the 30.5% tax bracket the $1000.00 deduction will reduce your tax payable by $305.00

If you are in the 25.0% tax bracket the $1000.00 deduction will reduce your tax payable by $250.00

A $1000.00 non-refundable tax credit on the other had will reduce your tax payable by $250.00

That is why the RRSP really has no effect in the lowest tax bracket. Although it may be beneficial in two unique cases. Please note that these two programs are like a loan from yourself and that the tax bracket argument down below applies to this as well.

The home buyer’s Plan – You can borrow up to $35 000.00 from your RRSP to put down on a first home. You have two ways to pay it back, by contributing to the RRSP or by adding 1/15 of the amount withdrawn into income (You have 15 years to pay it back). If you are in the lowest bracket it isn’t a bad thing to take it into income.

The Lifelong Learning Plan – You can borrow up to $20 000.00 from your RRSP towards your education. You have the two same ways to pay it back as above – the only difference is you have 10 years to pay it back.

One neat thing that people may or may not know is that you can carry your RRSP contributions forward until you want to use them, some accountants I know of will apply them yearly regardless. As a result, if you run into that banker who says you should set up a pre-authorized checking (PAC) plan for $25.00 per month – you can accrue your yearly $300.00 RRSP contributions until you are in a higher tax bracket when they will save you a minimum of an extra $55.00 per thousand. Another important thing to consider about the RRSP is that you save from the first dollar earned (dollars before tax).

It is important to know that despite the fact that the RRSP does create a deduction against income, it is to be used as a tax deferral – they are NOT tax free. Some people I speak to say, why would I put into the RRSP – I am double taxed. When looking closer at the picture, you are not double taxed at all – remember the RRSP is a tax deferral – NOT tax free. You get the deduction and savings when you contribute to and apply the RRSP contribution to your tax return (You saved from the first dollar earned). It is correct that you pay tax when you go to withdraw because, in practice you were not taxed yet. One of the biggest problems I often see, is people will withdraw the RRSP when they are in a higher tax bracket or will withdraw and the income inclusion will put them into a higher tax bracket. If you withdraw the money at a higher tax bracket than when you contributed, it defeats the purpose. I’ll illustrate by using the example above.

If you are in the 30.5% tax bracket the $1000.00 deduction will reduce your tax payable by $305.00

If you are in the 25.0% tax bracket the $1000.00 deduction will reduce your tax payable by $250.00

If you contributed in the 30.5% bracket and withdraw in the 25.0% bracket, you will have saved tax at $55.00 per thousand. However, if you contributed at the 25.0% bracket and applied the deduction and withdraw in the 30.5% tax bracket, you will have paid $55.00 per thousand more in tax. Please note that this example holds true for both the Home Buyer’s Plan and the Lifelong Learning Plan.

The RRSP is not for everyone; it is a strategy that should not be used as a bank account, sometimes the Tax Free Savings Account (TFSA) may be better. I will explain the tax differences in an upcoming post titled “Would You Rather Pay Tax on the Harvest or the Seed?”. When looking at these strategies – it is always good to review your unique situation with an independent tax advisor or planner, sometimes it is good to get a second opinion as well because no one person knows everything.

Descendants 2: Warning May Contain Spoilers***

Descendants 2 was an excellent stand alone movie for all ages who want lighthearted family fun. Some may even consider it better than the first movie. I guess this would make sense as there are two books written leading up to the second movie (“Return to the Isle of the Lost” and “Rise of the Isle of the Lost”), along with the Wicked World cartoon shorts.

Mal’s identity crisis – she wants time to breath.

In the movie, it is clear that one of the main themes is identity. This becomes evident when the viewer sees Mal struggle with her elevated status as the King Ben’s girlfriend (the future Lady Mal). She puts on a brave face by using her spell book to make her hair blonde, and appears both awkward and uncomfortable maintaining a princess-like mindset. She has a hard time keeping up appearances and is somewhat shocked by what she has become.

Mal addresses these concerns with Evie, Carlos and Jay who are content with their new lives in Auradon and have no desire to return to the Isle of the Lost. Evie want’s Mal to be herself and not depend heavily on magic, she goes so far as to tell Mal that the spell book should be in the museum along with her magic mirror.

King Ben discovers Mal’s reliance on magic, since she used it to make his surprise lunch and she is forced to come clean about her insecurities, causing an argument that eventually leads Mal to question her position in life. This struggle is shown when she goes back to the Isle and throughout most of the movie.

It is clearly evident that Evie loves her life in Auradon and is planning a future there. She is happy with her fashion design business and Doug (though this is evident in the movie, it is made more clear if you read “Rise of the Isle of the Lost” first) – to me Evie has grown a lot from the Evil Queen’s daughter being concerned with marrying a prince, which is what her mother wanted for her. Evie is also shown to be the most successful financially as her business is growing due to the high demand for Cotillion formal ware. She would rather work than try to marry into a higher class – this in contrast to Evie being more interested in Prince Chad at some point in Descendants (first movie) which is what Evil Queen would have wanted for her. In this regard, Evie doesn’t have to question her identity any more since she knows who she is.

The viewer can see a lot of growth in Jay as well as he has come to the conclusion that he does not have to go around breaking rules and stealing stuff. Disney is very clever when using word play as Jay wants Lonnie to be part of the R.O.A.R team but she is unable to because of Auradon’s rules -“A team is comprised of a captain and eight men”. In order to help Lonnie in a selfless act, he relinquishes his position as captain and gives the position to Lonnie. I am impressed with this as far as Disney goes because they like to paint everything as ultimately good or evil and this play on the rules actually illustrates that there are gray areas as well.

There is a great deal of growth and development for Carlos as well. In my opinion Carlos had been the most developed villain kid (that is if you read the books and watch the movies in order) which is why, I think that it should have been created as a series – though the blended entertainment works too. Carlos started of being timid and lacked confidence, probably due to Cruella’s treatment. From his help in searching for the Dragon’s Eye Scepter to standing up to his mother, he becomes more and more confident as the series goes on. Despite his growth in confidence, we see is internal struggles when building up the strength to ask Jane out – it is evident that he has some doubt built up (am I good enough for her? Will I be rejected? etc). This is actually another universal theme laid out in Disney fashion – boy likes girl, boy builds up confidence to ask girl out, boy gets yes – everything works out in Disney movies. I kind of wish that it weren’t always the case as it gives some people false hope and high expectations, but in this movie it works.

Another theme that shows up in the movie is the theme of opposing cultures. Ben and company feel that they must bring Mal back from the Isle because she is no longer seen as a villain kid (VK), and as a result must be brought home. Opposing cultures is an evident them as the movie takes place in both Auradon – where the sky is always blue and of course the Isle, where it is dark and dreary. Life is different on the Isle and this is creatively shown in the song “Chillin’ Like a Villain” when King Ben is dressed in his Isle garb to look more like the locals rather than in his formal ware of Auradon. I thought the use of “Chillin’ Like a Villain” was a creative and fun way of illustrating that you need to respect different cultures and norms rather than always falling back on your own.

Uma – large and in charge. What’s my name? Say it, say it…

The book “Rise of Isle of the Lost” was also a great lead in as it did a very good job of introducing the reader to other Isle locals such as Uma. Del la Cruz developed Uma’s character well and the movie further explains her internal hatred for Mal and her desire to be better. Uma is considered to be the new leader of the Isle since Mal left to live in Auradon. The movie does well to expand on Uma’s character as laid out in the book – such as rage, jealousy, and her narcissistic tendencies. Her narcissistic tendencies are on full display when she sings her famous song “What’s My Name” – this song highlights the importance she places upon herself above other people. For example when Harry says something along the lines of “she’s the captain and I’m the first mate” – it is evident that he knows his place.

Uma also has conflicts – the movie does a good job of creating her hatred for Mal but in a way makes the audience sympathize with her when she is trying to do what is best for the Isle. One of her pet peeves and sources of resentment is that she was not invited to Auradon when Mal, Evie, Carlos, and Jay were. Due to her competitive nature and her history with Mal – this adds to the conflict. The larger question is – is Uma truly evil or is she only concerned about her people.

Harry as a villain, is exactly what one would expect from Del la Cruz’s description – the movie did a really good job portraying him from his crazy, unpredictable behavior to his bullying. As well he is also shown to be obsessed with his hook – even though it’s an extension of his body – he did not come across it naturally. His craziness is evident when he threatens Mal or wants to deal with King Ben.

I probably shouldn’t of called her “Shrimpy”

I must say that one of the characters that was kind of lacking in the movie was Gil. He did not have a big part, only a few lines, and it seems that he was just added for comedic value. Gil does not seem like a villain as it seems that he is a little friendly. The disappointment with Gil is not a result of bad acting by Dylan Playfair – the character should have more of a role. It was hilarious when he made reference to “shrimpy”. Gil looks evil, but is he really? In all fairness though, not everything would fit into the movie and squeezing everything in would make it long and drawn out – much like the movie Titanic.

I think that Descendants 2 left off at the perfect place to keep the suspense going with Uma saying “you didn’t think this was the end of the story, did you?”

In all, I think that Descendants 2 was better than the first movie as there was more history and a much larger story line created before it was shown. It is evident that if you read “Rise of Isle of the Lost” before watching Descendants 2 you would see how it served as the perfect prequel to it. I feel that Del la Cruz tied the book and movie together perfectly and that nothing was out of place or added in just because – aside from Dude talking.

In my next post, I will talk about “Escape from the Isle of the Lost” and how it fits in with the overall Descendants universe.

5/5

Rise of the Isle of the Lost: Warning May Contain Spoilers***

The book “Rise of the Isle of the Lost” is the third book written by Melissa Del la Cruz and is the direct prequel to the Descendants 2 movie. I must say that this book led into the movie perfectly for many reasons. Descendants 2 is a good movie without reading the book – but is a much better movie if you read the book first, in my opinion anyways – since I believe that all of the books should have been made as movies so they could have been shown in order. The Rise of the Isle of the Lost is basically centered around King Triton’s trident and trying to recover it after it crossed over to the Isle. The next adventure that the four villain kids (VK’s) go on is the quest to recover it to keep a friend out of trouble. The friend in question was Arabella,one of King Triton’s many granddaughters and a niece of Ariel. Arabella, did something out of character for someone resident in Auradon – she borrowed the trident and did not return it. Mal and company had to recover it as it would have caused many dangers to Auradon if it fell into the wrong hands.

Rise of the Isle of the Lost gives us a better introduction to the villains who will eventually make Descendants 2 very entertaining to watch such as Uma, Gil, and Harry Hook as well as building on to their characters. On top of that the reader will learn how Uma had come across her much hated nick name “Shrimpy” as well as her overall rivalry with Mal. Uma can be seen as a negotiator much like her mother Ursula. Harry is made to be seen as an unpredictable bully, and Gil is made out to be the stereo typical guy who is really strong but not all there – he is actually made out to be dense. Del la Cruz also introduces the reader to some of the scenes that will make their way into the movie such as Ursula’s Fish and Chip Shoppe, the famous hair salon “Curl Up & Dye” and of course the lost revenge (the ship deck). The book is also able to bring the image of the Fish and Chips Shoppe to life along with the famous phrase “You’ll take it how I make it”.

Del la Cruz does a very good job in the development of Uma’s character as she is able to accurately create Uma’s many emotions such as rage, jealousy, and her narcissistic tendencies. One is able to see Uma’s true character when she enters a race to get a ship – she needs one when the news of the missing trident breaks. She also creates an accurate image of Harry Hook that, in my opinion will eventually be portrayed perfectly down to his obsession with his hook.

One of the main themes that plays out in this book in my opinion is how far should you go for a friend. Mal, Evie, Carlos, and Jay wanted to get the trident so that Arabella would not get in trouble and without informing King Ben on top of it. The whole situation with the trident created a dilemma – should the VK’s get the trident without informing Ben and risk getting caught or not getting the trident and having Auradon fall. The reader can see that Arabella is being selfish and greedy since she does not want to get caught for the situation she had caused. Arabella did not want to own up to her actions – thus showing cowardice – once again not a behavior worthy of Auradon. Can the VK’s be considered evil for trying to protect their friend?

Such behavior, trying to protect a friend despite the consequences is highlighted well too when Fairy God Mother is angry with the VK’s stealing (speed boat) – would she have been as angry if she know that the villain kids had to steal so that they could get back what Arabella stole (trident). I think that the book illustrates the fears and concerns of the VK’s well when they ask themselves if they did the right thing not informing Fairy God Mother or Ben before attempting to get the boat. When reading Rise of the Isle of the Lost, the reader can actually feel bad for the VK’s when they fear getting sent back home since thievery is an unacceptable behavior in Auradon, even to help a friend. The main question in this case is “is helping Arabella worth sacrificing all of the good things in Auradon?’ – in reality would Arabella get sent to the Isle if she did get caught – the answer is probably a no.

Other things that make more sense if you read the book before watching the movie would include how Jay became captain of the R.O.A.R. team over Prince Chad, Evie’s growing business and how it got it’s name as well as how and why Carlos was beginning to have feelings for Jane. The movie was a good stand alone which will be discussed later but it made a lot more sense to those who want substance. I actually watched the movie before reading both “Return to the Isle of the Lost” and “Rise of the Isle of the Lost”.

The Rise of the Isle of the Lost had a perfect ending for the set up – the trident was recovered with both Mal’s spell book and Evie’s magic mirror, Uma’s ship destroyed and the three villains trying to figure out how to deal with Mal next. Through the writing of the “Rise of the Isle of the Lost”, Del la Cruz had created the perfect back drop for Descendants 2 and the conflicts within.

5/5