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 […]

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 […]