Tax & Estate

Federal Budget 2021: Sales and Excise Tax Measures

Our final blog post in the 2021 Federal Budget series covers Sales and Excise Tax Measures.

Continued

Federal Budget: Business Income Tax Measures

This is part two of a three-part series focused on the 2021 Federal Budget. Picking up from the first blog post on Personal Income Tax Measures, we’ll cover Business Income Tax Measures.

Continued

Federal Budget 2021: Personal Income Tax Measures

This is a three-part series focused on the 2021 Federal Budget. In this series, we’ll cover Personal Income Tax Measures, Business Income Tax Measures, and Sales and Excise Tax Measures, International Tax Measures & Other Measures. We’ll first review the tax-specific measures and then summarize the non-tax-specific measures.

Continued

Foreign withholding taxes on ETF and mutual fund investments

Depending on how an investor holds foreign securities, foreign withholding taxes may apply. Here is a quick reference that walks through four different scenarios. 

Continued

Resulting trusts and registered plan beneficiary designations

A recent court decision in Ontario may have far-reaching implications, raising questions about the outcome of registered plan beneficiary designations when the beneficiary is a financially independent adult child.

Continued

Canada Revenue Agency makes it simpler to claim home office expenses due to COVID-19

Continued

Year-end tax tips for 2020

This year has been a roller coaster for many people – but, as 2020 draws to a close, we must turn our attention to end-of-year tax planning. Consider these year-end tax tips for your clients.

Continued

Transitioning from CERB to EI benefits or the new CRB

Learn how Employment Insurance (EI) benefits and the new Canada Recovery Benefit (CRB) are replacing support offered by the Canada Emergency Response Benefit (CERB).

Continued

Power of attorney arrangements and beneficiary designations on registered plans

Descriptor: An attorney designated in a power of attorney cannot make testamentary dispositions on behalf of a grantor, and this can pose problems in certain situations involving registered plans.

RESP withdrawals: basic rules and strategic considerations

A registered education savings plan (RESP) is an effective vehicle for funding post-secondary education expenses, although the complex withdrawal rules can be confusing. Parents with children who are currently attending or who will be pursuing post-secondary education want to make sure tuition and living expenses are well funded through RESP withdrawals. Parents whose children have already completed their post-secondary education or who have decided not to pursue post-secondary education at all, want to wind down the RESP in the most tax-efficient way. In this article, we go back to basics and review the three types of withdrawals available from an RESP, along with offering some strategic considerations when making a withdrawal.

Continued

Locked-in plans: Beneficiary entitlements and creditor protection

Our final blog post in this series covers beneficiary entitlements and creditor protection as they relate specifically to locked-in plans.

Continued

Locked-in plans: Types of plans and unlocking options

Picking up from last month’s blog post, let’s continue our look at locked-in plans. Similar to Registered Retirement Savings Plans (RRSPs) and Registered Retirement Income Funds (RRIFs), locked-in plans also consist of pre-retirement plans and post-retirement plans. In addition, specific rules relate to unlocking amounts from these plans.

Continued

Locked-in plans: understanding the basics

This is a three-part series focused on locked-in plans. In this series, you’ll learn the basics to help clients with these less-understood plans, explore pre-retirement and post-retirement plans and unlocking options, and get an overview of issues surrounding beneficiaries and creditors. Let’s first understand the basics in this part.

Continued

An overview of COVID-19 government support programs

Learn about the measures the federal government has introduced to help Canadians manage the impact of the COVID-19 pandemic.

Continued

Planning strategies for Registered Retirement Income Funds

The 25 per cent reduction in mandatory Registered Retirement Income Fund (RRIF) minimums for 2020 was one of a handful of tax relief measures the Canadian federal government implemented as part of its COVID-19 economic stimulus. The government has made similar changes in the past, with the RRIF minimums temporarily reduced by 25 per cent in 2008 amid the global financial crisis. RRIF minimums also came into focus in 2015, with the government lowering the prescribed factors it uses to calculate minimum withdrawals. Reducing RRIF minimums is aimed at increasing financial longevity for individuals in retirement who are living longer. The government has also changed the age at which Registered Retirement Savings Plans (RRSPs) mature several times over the years. Originally set at age 71, it changed to age 69 in 1996 and changed back to age 71 in 2007.

Continued

COVID-19 economic stimulus package

Updated March 25, 2020

Continued

Filing your clients’ 2019 taxes: what’s new and noteworthy

The Thursday, April 30 tax filing deadline for individuals is coming up fast. Here’s a summary of new limits, new rates, tax changes and new services.

Continued

Still not sure about RRSP vs. TFSA? Here’s how to use both

Learn how to maximize long-term tax benefits using tax-sheltered or tax-deferred registered plans.
 
One of the biggest benefits of registered plans in Canada is the tax-deferral opportunity on the compound growth inside the plans. In other words, registered plans generally allow investors to avoid the periodic tax on investment income generated; non-registered plans, in contrast, expose investors to annual taxation of income distributions. Without the annual “tax-drag,” investments in registered plans can grow faster than investments in non-registered plans. Given that, which registered plan is best to use? Here are key factors to consider when deciding whether to invest in a Registered Retirement Savings Plan (RRSP) or a Tax-Free Savings Account (TFSA).
 
RRSP contributions are deductible against income, and RRSP redemptions are 100% taxable as income. TFSA contributions are made with after-tax money, and TFSA withdrawals are tax-free. Funds grow inside both plans on a tax-deferred basis.
 
RRSPs and TFSAs are, in fact, designed to be tax neutral, assuming a constant marginal tax rate (MTR). When an investor has a constant MTR throughout his or her working and retirement years, there should be no difference between an RRSP and a TFSA in net after-tax income.

Continued

Resulting Trusts & Joint Accounts

One way of classifying trusts is to divide them into express trusts and trusts arising by operation of law. An express trust is created with the settlor’s intention – for example, when a parent creates a trust for a child to provide ongoing financial support into the child’s adulthood. The intention can be clearly expressed by the settlor or implied by his or her words and conduct, although the latter is a question of fact and may require sufficient evidence to prove the intention. On the other hand, a trust arising by operation of law is not established with intention, but is found by a court to exist even if the settlor did not intend to create it.

Continued

‘Tis the season for tax-loss selling

As the year-end approaches, many investors with taxable accounts may be seeking to dispose of securities that have lost money. The strategy of tax-loss selling allows the investor to claim a capital loss, which offsets capital gains for the current year. Any unused net capital losses can then be applied against taxable capital gains in any of the three preceding years, or carried forward indefinitely to future years. To realize capital gains and losses in 2018, trades must be executed by Thursday, December 27 to ensure settlement by Monday, December 31, the last business day of 2018.

Continued