Millions Suffer From Hearing Loss: Year-End Tax Planning Can Help

According to a recently released study by Statistics Canada, people who are socially isolated are more likely to experience a poor quality of life, morbidity and mortality. Loss of hearing has a big part to play in creating that feeling of isolation, particularly for women. Tax and financial advisors can directly help address the issues with some year-end tax planning. The StatsCan study, by Pamela L. Ramage-Morin, points to some surprising findings based on the 2012-13 year: About 4.5 million […]

Eight Short Snappers: Quick Year-End Tax Planning Tips

There is still plenty of time to look for year-end planning strategies to reduce taxes in 2016 and start 2017 out on a tax-efficient foot. Tax and financial advisors who make time for a planning discussion with families at this time of year may wish to use this checklist of money savers: 1. Investors: Donate Securities. Check non-registered portfolios for securities showing accrued but unrealized gains. Capital gains can be avoided entirely when qualifying securities are transferred to your clients’ […]

Donations of Flow-Through Shares

This is the time of year that high net worth clients are looking for one more tax saving opportunity before year end. Donations of flow-through shares, commonly available from corporations in the oil & gas, mining and renewable energy sectors, will still be allowed. However, many tax and financial advisors will want to brush up on their knowledge of the subject first. Recall that under these arrangements, eligible exploration, development and project start-up expenses may be renounced by the corporation […]

Shore Up Your Tax Knowledge on Offshore Asset Reporting

Year end is a great time to re-engage clients in conversation about financial decision-making, especially for clients with offshore assets who may need to report some of them on Form T1135 Foreign Income Verification. Who must file Form T1135? Canadian residents who own assets abroad must submit a newly enhanced Form T1135 Foreign Income Verification to CRA to disclose whether they had “specified foreign assets” held during the year. The form is required if the total cost of the properties […]

Year-End Tax Secrets: Mutual Funds

Mutual funds are common investments but can often cause some tax confusion, particularly because investors don’t understand their real returns from these investments, after fees and taxes. Here’s the year-end tax secret: In some cases, there are unintended results that can push investors into a higher tax bracket than expected at the end of a tax year and make quarterly instalment remittances, and often interest payments for under-remitting, necessary. This is because mutual fund companies are required to distribute all […]

CPP Actuarial Report: Expected Return 3.9% to 2090

The 27th Actuarial Report on the Canada Pension Plan provides some fascinating reading about Canada’s demographics and economy over the next 75 years, to 2090. The average annual real rate of return on the fund is expected to be 3.9% in that period, and the report reassures that the current legislated contribution rate of 9.9% will be “more than sufficient” to cover expenditures to 2020, with up to 26% of investment income making up the difference between CPP contributions and […]

Beef Up Your 2017 Canada Child Benefit Now

It’s unclear whether Canadians are really getting more from their Canada Child Benefit in 2016 over the Universal Child Care Benefit and family income splitting. That’s the subject of our October poll. However, at this time of the year there is lots a tax specialist can do to make sure your family maximizes the credit. Here’s how the Canada Child Benefit works: First, it’s a refundable credit based on family net income. Specifically, the new Canada Child Benefit provides a […]

New Tax Reporting Rules Will Affect All Homeowners

A broad-based change by the Department of Finance, announced on October 3, 2016, will provide an excellent opportunity for collaboration before year end by financial advisors, accountants and their clients who have sold a principal residence in 2016. Finance Canada has proposed that all real estate dispositions must be reported on the tax return starting in 2016, even if the property qualified as a principal residence in every year of ownership. Prior to 2016, no reporting was required at all […]

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 […]