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Category Archive for: ‘Taxation’

2017 Corporate Tax Strategies

tax strategies

This summer saw a raft of proposed tax changes that created an unprecedented uproar from small business owners, professionals and farmers. Some of these changes will be implemented right away and some will go back to the drawing board for revision. I have listed some of these below and would recommend that for more in-depth advice to consult with your …

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‘Tis the Season for Charitable Gifting

charitable gifting

 As the Christmas season fast approaches, many of us are considering charitable gifting. Giving to charity can be a great way to support the wider community and feel good. You can give through the gift of time (volunteering at a local food bank or soup kitchen) or the gift of money. Cash donations not only allow you to give back …

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My Thoughts on the Liberal’s Proposed Tax Changes

tax changes

I have spent considerable time reading through the draconian proposed tax changes and can only reach one conclusion; the current Liberal government is spending us down the river and are desperate for revenue. Our Prime Minister’s quote that “Budgets will balance themselves” rings rather hollow now. Where better to make a tax grab but from all the “rich” middle class …

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CRA’s Tax Changes for Incorporated Businesses

tax changes

The 2017 Federal Budget alluded to certain tax changes for small business owners, including incorporated professionals such as doctors, lawyers, accountants and others. In fact, these proposals will both negatively impact many of the owner-manager businesses in Canada and also deter many new business owners form wanting to incorporate.  These changes will also make Canada look less attractive for new …

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Tax Deadlines to be Aware of in 2017

tax deadlines

January heralds the start of the annual panic of gathering up all those documents that we need for the income tax deadline and review with our accounting professionals. Many of us are focused on this while forgetting that good tax planning should happen year-round. There’s no time like now to get started. Filing our returns is backwards-looking, and there are …

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Tax & Other Changes to Life Insurance Coming January 1st

tax and life insurance

This is an important notice to all holders of term life insurance policies who may be wishing to upgrade their coverage, convert some or all of their coverage to a new permanent plan, or who are just looking to apply for new permanent life coverage. There are some important changes coming that could impact your future life insurance choices. Effective …

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2017 Tax Changes to Life Insurance

tax changes 2017

Tax Changes are coming in January 2017 that will affect how life insurance is taxed.  As well, life insurance rates will be increasing.  Now is the time to book an appointment to review how these changes will affect your individual situation.   Watch this short video for a quick summary of some of the changes coming.  

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Prepare for Upcoming Tax Changes

tax changes

Governments cannot run big deficits without raising taxes.  We are seeing some tax changes coming in 2017 with more to come. Check into life insurance and annuities before year end:  Tax changes are coming for corporately owned permanent life insurance. If you are considering a sale to a third party or transition to the next generation, you should check into …

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Tax Benefits of Home Ownership

home ownership

The biggest investment most of us will make in our lifetime is our home. While providing a roof over our heads, it’s also likely to increase in value, which can be a significant source of tax-free gain. When we sell it for more than what we paid for it, the profit is not subject to tax, thanks to CRA allowing …

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CRA is Changing the Tax Rules for Life Insurance in 2017

tax

It seems that all good things either come to an end or get changed, and life insurance taxation is no exception. Deemed now to be too generous by CRA, they are changing the rules, which will impact retirement and estate planning strategies using life insurance and annuities. Permanent life insurance plans used for the purpose of tax sheltering and distributing …

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‘Tis the Season for Charitable Gifting

charities

We Canadians have a strong tradition of donating to charities. Unfortunately due to government funding cutbacks, the amount of public funding going to charities has been dramatically reduced. This leaves many charitable organizations scrambling for adequate funding in order to cope with the demands of our aging population and ever escalating operational costs. When gifting to a charity it’s important …

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TFSAs – Coming of Age in 2015

TFSA

TFSAs have become a much more valuable investment option today as a result of the last budget update, which now allows Canadians to contribute up to an annual maximum of $10,000 going forward. This new annual limit will no longer be adjusted up for inflation, so future increases will need to be legislated. Now more than ever, TFSAs are more …

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Understanding Tax Freedom Day

Taxation

As a follow up to my recent article “Will CRA be the big winner when you die”, I thought it would be helpful to explain why Canadians should understand what Tax Freedom Day means. The Fraser Institute annually calculates Tax Freedom Day in order to provide a comprehensive, easily understood indicator of the overall tax burden faced by an average Canadian family. …

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Will CRA Be The Big Winner When You Die?

Tax Planning

Unfortunately there are many people who underestimate the slice that CRA could take when they die due to the imbedded tax liability in their final estate. For single people this happens when they die, but for couples, all those imbedded taxes come due on the last spouse’s death. RRSPs or RRIFs: Take a couple with $350,000 between them in RRSPs …

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Tax Strategies for 2015

Tax Strategies

For Individuals: Prescribed rate loan to a spouse:  If you’re married, consider establishing or modifying a spousal loan as a possible income-splitting strategy. Unrealized capital gains:  If you have unrealized capital gains and your marginal tax rate will be lower in the coming year, defer the gains until then.  This way, any tax payments can be deferred until the next …

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When to use a Spousal RRSP

On Beach

I often get questions from couples wanting advice as to whether they should consider a spousal RRSP to help cut their overall tax bill in retirement. Just like a lot of things, it depends. Spousal RRSP plans are the most beneficial in situations where one spouse earns significantly more than the other one. For example, if one spouse was working …

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Tax Tips and Year-End Reminders

Cutting Taxes

Now that 2014 is winding down, here’s a reminder to take advantage of some last-minute tax tips before the time runs out. Tax-loss selling: Sell investments with accrued losses to offset capital gains realized in this year or the prior three years. The trading date must be no later than December 24th to settle three business days before December 31st. …

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2015 Indexation Adjustment from CRA

Tax Forms

    ***Reprinted from CRA*** 2015 indexation adjustment for personal income tax, benefit amounts, and the annual dollar limit for Tax-Free Savings Accounts (TFSAs) Each year, certain personal income tax and benefit amounts are indexed to inflation using the Consumer Price Index data as reported by Statistics Canada. Increases to tax bracket thresholds, amounts relating to non-refundable credits, and most …

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Taxation Changes Will Dramatically Impact Some Canadians

Caution Sign1

Proposed taxation changes to how CRA will tax prescribed annuities are hidden in other changes planned for life insurance products. Currently, insurers are using the 1971 Mortality Table rates. After December 2015, the proposed new regulations will require that insurers use the 2000 Mortality Table rates with its increased life expectancy. The result will be a drastic increase in the …

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Don’t Wait Until April To Review Your Taxes: Five Strategies For Year-End

Tax Return

The original article can be read on Canadian Newswire With the year coming to a close, it’s time to think about financial deadlines. Don’t make the common mistake of waiting until April to review your taxes!  Consider these five tax strategies for year-end (aka, now). Canadians who want to take full advantage of various 2013 tax planning opportunities need to …

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