Canada Revenue Agency: How Retirees Can Turn a $300 Tax Break Into $2,000

Here’s where retirees can look to invest the CRA’s $300 benefit if they do not require the money right now.

There are a number of benefits available to Canadians amid the COVID-19 pandemic. Canadian seniors eligible for the Old Age Security (OAS) would have received $300 by the Canada Revenue Agency (CRA) in the last week.

This one-time emergency payment was disbursed by the Canada Revenue Agency to help retirees cover rising costs due to COVID-19. The $300 disbursement is non-taxable, and if you have the luxury of spending this amount, you can look at buying growth stocks such as Facedrive (TSXV:FD).

Investing in the equity market and in growth stocks carries significant risks, especially if you are a retiree. However, as stated above, if have enough savings with multiple income streams to lead a comfortable retired life, you can look to multiply this small payout.

Facedrive stock has gained close to 700% in 2020

While the equity market has been in a state of chaos, one small-cap stock has managed to easily outpace broader indexes. Shares of Facedrive are trading at $18.4, up from just $2.35 at the start of 2020. This means a $300 investment in Facedrive in January 2020 would have been worth over $2,000 today.

Facedrive is a ride-sharing platform that aims to help people make sustainable transportation choices and reduce carbon footprint. The company has electrical vehicles, gas-powered vehicles, and hybrids in its fleet. It provides riders with an option to check the environmental impact on the completion of their rides. Further, it also gives them an option to invest in environmental initiatives like planting trees.

Its eco-friendly appeal is bound to attract millennials, and the company has over 78,000 users, according to its recent presentation. Facedrive is optimistic about long-term growth. It has forecast the global ride-sharing market to grow from US$235 billion in 2019 to US$365 billion in 2023. The Canadian ride-sharing platform is estimated to grow at an annual rate of 9.5% between 2018 and 2024.

Facedrive’s presentation claims that the ride-sharing penetration rate among Canadians stood at 13.1%, while the average ride-share revenue per Canadian user is US$180.

Facedrive competes with giants such as Uber, Lyft, and other domestic competitors if it looks to expand into international markets. However, the company is confident its additional features that include live support, in-car “edu-tainment” coupled with its eco-friendly mandate will help it gain traction in the upcoming decade.

Will Facedrive continue to crush the broader market?

Facedrive already services regions in the Greater Toronto Area, Hamilton, Kitchener, Waterloo, Ottawa, Orillia, Cambridge, and Guelph. It then plans to expand its footprint south of the border and in Europe, which will help it increase top-line growth at a rapid pace.

Facedrive stock might seem expensive after its massive surge in 2020. Facedrive reported sales of $599,104 and is valued at $1.7 billion, which means its trailing price-to-sales multiple is an astonishing 2,833. However, its sales also rose 4,311% from $13,579 in 2018.

Facedrive is a high-risk investment but is worth allocating a small amount of your capital given its rapidly expanding market.

The Motley Fool recommends Uber Technologies. Fool contributor Aditya Raghunath has no position in any of the stocks mentioned.

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