Earn Over $956 a Month Tax Free in 2016

Did you know that in Canada every individual can earn over $950 a month completely tax free? You’ll want to pay particular attention to the “tax credits” you may be entitled to, and how to benefit from them, as you get ready to file your tax return. Tax credits come in two types: refundable and non-refundable, and both the federal and provincial tax forms have them. Both are lucrative and filing a tax return is mandatory if you are going […]

Tackling the Tax Return: Getting Started

It’s February and that means it’s officially tax season. If you are going to tackle filing your tax return yourself this year—and every Canadian should try to grasp this life skill at least once—you will want to know more about the basic elements of the T1 General Income Tax and Benefit Return. This includes choosing the right package of forms and schedules for your province of residence as of December 31, 2015. A tax return can be filed on paper, […]

Underground Economy: Canada Has Second-Lowest Problem

The most recent statistics on the Underground Economy (UE) in Canada are from the year 2012, released in April 2015. The total underground activities were valued at $42.4 billion or about 2.3% of gross domestic product (GDP). A high of 2.7% was reported in 1994 and this fell to a low of 2.2% in 2000. However, after a brief uptick in the early 2000s the proportion remained relatively stable between 2.3% and 2.4%. According to CRA, “The residential construction industry […]

The Impact of Education and Aging on Real Wealth Management

When fewer, younger taxpayers must pay most of the taxes while looking after both the elderly and minors, it’s much more difficult for them to accumulate assets for their future, and get good returns on their investments in this environment of de-population. Here’s why: The fact that so many rich countries will experience an ageing recession at the same time will affect consumer demand, corporate profits, asset values, and balance sheets. As much was predicted in an interesting report back […]

Ten Key Tax Changes for 2016 Greet Unsuspecting Taxpayers

CRA has been prolific recently, releasing its 2015 T1 General Income Tax and Benefits return, its schedules and auxiliary tax forms, together with accompanying guides and pamphlets. To get through them all is a challenge; so is understanding the volume of changes for the 2016 tax year. These are key reasons to see your tax specialist early in the 2016 tax filing season: it could be an especially busy one this year. The ten topics that follow should be discussed […]

RPP, RRSP OR TFSA? Workplace Pensions Have an Effect on Savings

Do RPPs and RRSPs act as substitutes for one another in retirement savings patterns? At first glance, this appears to be so, based on a new study released this week by Statistics Canada. The big finding is that workers who are self-directed savers benefit less than their co-workers who don’t tend to save enough for retirement when RPP contributions automatically increase. As a result, pre-retirees and their tax and financial advisors may wish to take a greater interest in changes […]

NOW AVAILABLE: Evelyn Jacks’ Family Tax Essentials. How to Build a Wealth Purpose with a Tax Strategy.

It’s more important than ever for Millennials and their Boomer parents to start discussions about multi-generation tax, retirement and financial planning, and after dinner story-telling over the holidays is a great way to start a new financial journey in 2016. Just how do you build a Wealth Purpose with a Tax Strategy? Evelyn Jacks’ Family Tax Essentials will provide you with some great new ideas! “Evelyn Jacks shows Canadian families how to use tax planning to save thousands over the […]

Ways And Means Motion: Lots of Tax Changes, Budget Shortfall

The Federal Government introduced a Ways and Means Motion on December 7 that will implement the promised middle income tax cut to 20.5%. In addition, there are a host of new tax increases for high net worth clients: Canadian retirees and business owners that tax and financial advisors will want to reach with planning advice soon. In fact, advisors will be challenged to update not just on the tax changes to the 2015 T1 return but also to re-think personal, […]

Robo-Advice and Family Investment Strategies May Mix Well

The assets controlled by today’s 34-year-olds will quintuple in coming years, but only 17% of adult children have a relationship with their parents’ advisors. Ignoring them may be one of the most significant mistakes today’s advisor may be making. In fact, in the face of dramatic demographic change and the advent of robo-advice, an excellent opportunity is emerging to make current conversations between families and their professional advisors more efficient and meaningful, according to Nicholas VanDerSchie, Head of Advisor Solutions, […]

Managing Capital Losses: Four Discussion Points

The selling of capital assets is a permanent transaction, one that can lock in gains and losses and leave taxpayers with either positive or negative tax results. Structuring transfers of assets to family members can be just as precarious, without financial guidance from learned and experienced specialists, that is. Here are four discussion points to consider for year-end planning purposes if an actual or deemed disposition is imminent in a non-registered financial account or with non-financial assets, not including depreciable […]