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Applications for the new, much anticipated Canada Disability Benefit (CDB) open on June 20. The tax-free monthly CDB payments are meant to provide financial support to qualifying people with disabilities. The program is administered by Service Canada and the first month of eligibility is June, with the first payments beginning in July for applications received […]
This coming July 1 will be particularly special. Sure, Canada will be celebrating its 158th birthday that day, but even more exciting for some of us is that the Canada Revenue Agency ’s prescribed interest rate will drop to three per cent on that date, providing a greater opportunity to split income with a spouse
Jamie Golombek: July brings a greater opportunity for income splitting Read More »
Many tax practitioners, including me, have called for tax reform over the years, but it doesn’t seem to resonate with the average Canadian even though it should. Tax reform for many politicians generally means appeasing their voter base with new tax measures that are often shallow in substance and miss the mark from a good
A 1% tax cut isn’t tax reform nor is it needle-moving for most Canadians Read More »
Canada’s population over the past nine years has grown 15.8 per cent and now tops 41.5 million, so you would expect the federal government’s expenditures to increase over that time period as well. Although population growth is not perfectly correlated to expenditure growth — political ideology and spending commitments, rising interest rates , inflation and
Growing federal government expenditures mean more taxes are coming for you Read More »
Spousal registered retirement savings plans (RRSPs) have been around for decades, and for many couples, these plans can play an important role in reducing tax upon retirement. But, they can be complicated, and it’s important to understand how they work and when they are most appropriately used in retirement. Let’s review the contribution rules, and
How spousal RRSPs can reduce taxes without getting you in trouble Read More »
The United States House of Representatives last week passed Donald Trump’s One Big Beautiful Bill Act , a voluminous and complex piece of proposed legislation that contains numerous tax amendments that could end up hurting Canadian pension plans and other investors. The act includes things such as making permanent certain personal tax rate reductions (which
The tax hit to Canadians from Trump’s ‘big beautiful’ bill could be tremendous Read More »
With the 2024 tax season now over for most of us (those with self-employment income and their spouse or partner still have until June 16 to file), the preliminary tax filing stats have been released by the Canada Revenue Agency . Of the 29.9 million personal tax returns filed to date, 94 per cent of
Have you made a mistake or need to change your tax return? Here’s how Read More »
Canada’s federal finance minister has announced that a budget will not be presented during the upcoming session of Parliament, but there will be a fall economic statement (FES) presented later this year, which surprised many and it should. Isn’t one of the basic constitutional principles of our democracy that taxpayer money cannot be spent without
Canada needs a full federal budget now to show where taxpayers’ money is going Read More »
This week, Prime Minister Mark Carney confirmed that François-Philippe Champagne will remain as finance minister. While many had expected that one of his first orders of business would be tabling a federal budget , on Wednesday Champagne suggested that he would not be presenting a spring budget when the House of Commons resumes sitting at
Will Liberals fulfil an election promise to give relief on RRIF withdrawal amount? Read More »
Nary a week goes by without me hearing from a reader or client asking for guidance with an inadvertent overcontribution to a registered retirement savings plan (RRSP) or tax-free savings account (TFSA) . This week, for example, an individual shared with me that they were hit with $1,200 in penalty tax for overcontributing by $23,000
Taxpayer wasn’t fast enough to avoid penalty for TFSA overcontribution Read More »
If you own a rental property , you likely bought it because of the monthly rental income the unit would provide, with the hope of ultimately being able to sell it for a profit in the future. Indeed, some landlords are okay with ongoing rental losses (as long as they are not too large) because
Taxpayer loses case to deduct costs and losses while renting to parents Read More »
It’s fair to say most partisan Canadians and their political parties were not thrilled by the results of Monday’s federal election . The surging Liberals did not get their majority (as of press time), even in light of presenting an agenda, from a new shiny face who was not Justin Trudeau, that stoked fear about
Canadians don’t see a unified economic way forward and that’s bad news Read More »
With the party leaders’ debates now behind us, and the federal election just days away , what better time to take a brief look at a few of the more interesting tax policies announced by three of the major parties. Lowest tax bracket Both the Liberal Party of Canada and the Conservative Party of Canada
Golombek: A look at four tax proposals floated for the federal election Read More »
Let’s pretend you want to buy a car for $50,000, but you only have savings of $20,000, so you will need to finance the other $30,000. Now, let’s assume the savings were accumulated from your previous after-tax earnings since your cumulative household expenses were less than your cumulative earnings, and that the interest-bearing financing can
Carney’s ‘spend less, invest more’ marketing catchphrase means more taxes are coming Read More »
Tax-filing season is in full swing, but many Canadians may be missing out on unused tax credits from the past decade because they’re too lazy to claim them. Sixty-five per cent of Canadians are unaware that they can amend old tax returns to claim any benefits they have missed in the previous 10 years, according
Canada’s April 30 tax-filing deadline is fast approaching, but many are planning to delay filing due to confusion over recent tax changes, according to a recent survey by H&R Block Inc. The survey said 29 per cent of Canadians are feeling confused about what they are supposed to claim and 28 per cent are planning
Many Canadians are delaying filing their taxes over confusion with recent changes Read More »
I love studying history. In my undergraduate studies, I made sure to load up on post-Confederation Canadian history courses and it’s truly fascinating to learn how this country was built. Similarly, I am always interested if proposed taxation policies were ever considered historically. More often than not, the answer is yes. There have also always
History shows Liberals’ new housing plan failed the last time it was implemented Read More »
Do you know why deductions are more valuable than tax credits? Here’s a rundown of basic tax issues to understand https://financialpost.com/personal-finance/taxes/jamie-golombeks-primer-on-tax-brackets-deductions-and-credits #financialfreedom #money #entrepreneur #business #finance #investing #financialliteracy #success #investment #wealth #motivation #financialindependence #passiveincome #personalfinance #realestate #stockmarket #debtfree #entrepreneurship #invest #bitcoin #creditrepair #debtfreecommunity #investor #trading #workfromhome #stocks #credit #financialeducation #bhfyp
Jamie Golombek’s primer on tax brackets, deductions and credits Read More »
Kim Moody: Canada needs bold ideas right now, not increased spending that is fiscal laziness dressed up as leadership https://financialpost.com/personal-finance/capital-gains-tax-break-for-investing-in-canada-is-a-big-idea-that-makes-sense #financialfreedom #money #entrepreneur #business #finance #investing #financialliteracy #success #investment #wealth #motivation #financialindependence #passiveincome #personalfinance #realestate #stockmarket #debtfree #entrepreneurship #invest #bitcoin #creditrepair #debtfreecommunity #investor #trading #workfromhome #stocks #credit #financialeducation #bhfyp
Capital gains tax break for investing in Canada is a big idea that makes sense Read More »
Jamie Golombek: Recent court case an important reminder to make sure you’re comfortable with anything you claim on your return https://financialpost.com/personal-finance/taxes/cra-arrears-interest-donation-tax-shelter #financialfreedom #money #entrepreneur #business #finance #investing #financialliteracy #success #investment #wealth #motivation #financialindependence #passiveincome #personalfinance #realestate #stockmarket #debtfree #entrepreneurship #invest #bitcoin #creditrepair #debtfreecommunity #investor #trading #workfromhome #stocks #credit #financialeducation #bhfyp
CRA demands arrears interest on donation tax shelter bought by ex-husband Read More »