Top Five Tips To Help You Recharge

We have all heard people say they would rather be at work than take a holiday. They dread the unmanageable email list when they get back from a few days off. Interesting, how easy it is to give up your joy to the demands of constant time pressure. Forgotten how to recharge? Consider these five tips for enjoying the holiday season this year: Turn off the work cell – if you must use your smart phone, make it about touching […]

Give The Gift Of Time: It’s Precious

It seems to sneak up on us every year: the Christmas Holiday season. Regardless of how you celebrate, it is a time to reflect, count your blessings, give, and re-evaluate how you will use your precious resources of time and money in the new year. At Knowledge Bureau, we spend every day working on delivering excellence in financial education to highly motivated professional advisors who want to take their continuing professional development to an even higher level as masters and […]

CRA Security Breaches: Taxpayers Must Be Able To Rely On Privacy

Canada has a taxation system that is based on self-assessment. We are required to accurately assess income, deductions and credits, filing our tax returns on time, or face penalties, interest and/or jail in serious instances. This system has served us well, with the vast majority (over 90%) of Canadians filing and paying their taxes on time. One of the reasons we are so compliant as a nation is that we trust in the confidentiality we are promised under our Taxpayer […]

Counting Losses Counts For Cash

Disciplined investors sell at the top of a cycle and buy at the bottom.  Smart ones also pause and plan at this time of the year,  crystallizing losses deliberately before year end to get the desired tax results. How do capital losses impact your tax return?  Lucratively. Capital losses incurred when capital assets are disposed of,  first reduce or cancel out this year’s capital gains.  After this, unabsorbed losses can be used to reach back to recover taxes paid on […]

Kick Start 2015 Financial Plans

First the bad news. The rules behind the very least you could possibly pay as a household are very complicated. Despite all hype around the $5Billion the new Family Tax Cuts and additional provisions promise to eligible households, it’s going to be up to the taxpayer to navigate the new tax return, file accurately and to the family’s optimal benefit. Now the good news, in case you missed it: there’s $5 Billion of tax goodies up for grabs and there […]

Maximum CPP Premiums for Self-Employed Close to $5000

The CRA has announced the maximum CPP pensionable earnings for 2015: $53,600 up from $52,500 in 2014. The premium rate of 9.9% (employer and employee) and basic exemption ($3500) remain the same as last year. What this all means in real dollar terms is that the maximum premium is going up again; this time to $2,479.95 for each the employer and employee. If you are self employed, you pay both portions, so for you, the maximum contribution to the CPP […]

Scary: Financial Literacy at CRA

It’s Halloween week and Financial Literacy Month is just around the corner, right after the ghosts and goblins visit. Just in time too, because it turns out it’s not just your imagination: communications from CRA are somewhat ghoulish. It’s been confirmed by New York consulting firm, Siegelvision, which was paid $25,000 by CRA to check up on the clarity of its communications with taxpayers. It found: “information (from the CRA) was not well organized, presentation of information did not inspire […]

Ancient Tax Law Important in Family Cottage Succession

Tax and financial advisors should make an effort to review their clients adjusted cost base records as part of the annual Year-End Tax Planning routines now ’til the end of the year, especially if the family owns a taxable cottage property. Ancient tax law is important in these cases. Dating back 20 years to February 22, 1994, digging out the Capital Gains Election form could save tens of thousands of dollars on an actual or deemed disposition, which can happen […]

At Year End, Increase Investment Returns with Tax Planning

Tax planning is about what you keep to live your happy life with. It’s too bad so many people miss out by failing to think about year end tax planning in the family. Understanding your lifetime tax obligation is an important motivator because it will help you understand the magnitude of tax savings possible. Consider this reality check: Find the amount of taxes you paid last year on Line 435 of your tax return. Now multiply that figure by an […]

Income Splitting for Canadian Families

Income splitting and higher limits to TFSAs could make a big difference in Real Wealth Management™ for Canadians families, reducing tax on income both today and in the future when retirement income is drawn completely tax free. It will all depend on how the final legislation is written and whether the government is elected to implement the plan. But because this is an election issue, it’s important that the significance of the potential double gift – income splitting and new […]