Increase Investment Returns with Year-End Tax Planning

It’s too bad so many people miss out on year-end tax planning for the family. Tax planning is about what you keep: what’s left of your income and capital after taxes are paid. Now is a great time for advisors and clients to review what can be done to lessen this year’s tax load. Understanding your lifetime tax obligation is an important motivator because it underscores the magnitude of tax savings possible. Here’s a reality check: Find the amount of […]

Real Estate Continues To Make Canadians Wealthier

Statistics Canada’s issued two reports on September 15; one reporting good news on the value of household wealth; the other showing that the value of employer-sponsored pension funds declined. Meanwhile, the Conference Board of Canada reports that while global growth prospects are weak in 2016, economies that can recreate in light of a great paradigm shift will growth exponentially. While national net worth declined slightly in the second quarter from $265,200 to $264,600, on a per capital basis, household net […]

Tips to Minimize Instalment Payments

September 15 is the date on which the third quarterly tax instalment must be remitted to CRA, to avoid interest costs on amounts owing for 2016. CRA may have sent a notice, but is the amount shown on it what is really owed? Now is the time to consider the options you have in payment methods and project income for 2016 . . Here are our top three tips for managing quarterly instalments to remit the correct amount, but no […]

TAX TIP: Top Three Tax Investments for Education Funding

Statistics Canada reports that an undergraduate degree costs close to $6200 but according to a new study,  80% of parents don’t know that.  Worse,  most parents are poorly informed about tax efficient ways to save, especially weak on RESP knowledge.  This is a great opportunity for tax and financial advisors to add significant value. In this article on education funding, find out more about the RESP, the TFSA and the RRSP as funding options. TFSA: Deposits to a TFSA are […]

Campgrounds Back In Tax News

The dreaded CRA audit letter. It can appear in the mail at any time. If you are concerned about CRA’s audit approach to small business corporations and their access to the Small Business Deduction in particular, check this out: CRA has provided an update to its audit position on the matter and specifically for campgrounds when there are fewer than five full time employees in the business. You may recall the story we covered in May, when $250,000 owing in […]

Five Reasons to Get CRA Penalties and Interest Waived

It’s back to school time and families are spending money getting ready for the big day; registration for sports activities seems to be more expensive that ever; and now this: you find you owe money to CRA! That can certainly be an expensive way to end the summer. But in certain circumstances, penalties and interest owed to CRA may be waived. You may qualify in the following instances: CRA has made an error or has had significant delays in responding […]

RDSP: Take a New Look at RDSP to Help The Disabled

Is there a new disability in the family for someone under the age of 49? Astute tax and financial advisors will want to introduce the RDSP (Registered Disability Savings Plan) as a savings option to shore up support for the future. But, who is eligible and what can be contributed? A primer on this very lucrative plan should be discussed with your clients. The RDSP may be established for an individual who has a severe and prolonged physical or mental […]

Financial Capability is Multi-Dimensional; so is Financial Advice

A just-released synopsis of the FINRA National Financial Capabilities survey of close to 30,000 Americans from June to October 2015 showed a stunning lack of financial understanding there; at a time when wealth and income inequality is at an extreme not seen since World War II. But Canadians did not do much better. Despite impressive economic gains since the survey was first conducted in the US in 2009, only 14% of respondents to 5 financial literacy questions answered all correctly; […]

Manitoba Signs On: CPP Final Agreement Coming July 15

Manitoba has agreed to sign on for federal Canada Pension Plan reforms and that gives the required 2/3 approval by the provinces required for the federal plan to move forward. Manitoba wanted emphasis on three key issues, discussed below, but the real issue to follow is this: will this be enough to help middle class Canadians fund their retirements? Manitoba raised some important issues regarding the mechanics of the CPP of the future – thorns in the side of current […]

Back To School? Encourage Fitness Now – Tax Credits End In 2017

There are big changes coming for families who get the refundable Children’s Fitness Tax Credit, so use it before you lose it! Back in 2014, Canadian families were treated to a non-refundable tax credit of up to $1,000 when they enrolled a child under the age of 16 in an eligible program of physical activity. This included programs that enhanced physical strength, balance and endurance. But it only helped families who had taxes payable. Then, starting in the 2015 tax […]