As you begin to get ready to prepare your 2023 tax return, we want to ensure you’re aware of important upcoming dates and deadlines so you have everything you need to file your return with minimal hassle.
Those Canadians (45%) who say that they have a retirement plan feel less stressed about their future because retirement feels more attainable. However, many of those are unaware of what a real retirement plan looks like. Regularly saving in a company pension plan, an RRSP or a TFSA is not a retirement plan.
Many of us understand the value of the Registered Retirement Savings Plan (RRSP): almost six million Canadians make RRSP contributions every year.1 Most of us also know about the tax benefits of RRSP contributions and that it’s an extremely versatile and effective retirement planning tool.
As we wave goodbye to 2023, we can also expect to bid adieu to some of the key events of the year that made it especially challenging for the markets. The central bank interest rate rises, which brought about a mini banking collapse early in the year, appear to have come to an end, while inflation is moving toward target levels.
And are you one of the 32,000 Canadians who’ll have to pay it? Many Canadians haven’t heard of the alternative minimum tax (AMT), which isn’t surprising when you discover that only a small percentage of Canadians typically pay AMT annually. The AMT came into the news recently when the federal government announced significant changes to it in the 2023 budget (which will come into effect in 2024). Let’s take a look at what the alternative minimum tax is, how it works, who it might affect and the impact of those changes.
It’s tax season, a time when many people’s thoughts turn towards their tax refund and what they’ll do with it. Should you put it towards your mortgage, add it to your RRSP or make a TFSA contribution? While many financial institutions often recommend one of those options, we might suggest a different one: don’t get a tax refund at all.
A vacation property—whether it’s a cottage in Muskoka or a chalet at Tremblant—is a valuable asset, not just in terms of the real estate, but also as a place that holds years of family memories. For many Canadians, passing the property to the next generation is a priority, but there are significant tax and non-tax-related considerations associated with keeping that cabin or condo in the family.
Many Canadians designate a direct beneficiary on their RRSP, RRIF, TFSA or insurance policies without giving it a second thought (although in Quebec, beneficiary designations are only effective on insurance policies). However, designating a direct beneficiary is not recommended for many plan/policy owners, where they have non-traditional or unique family situations, as it can lead to unfavourable tax implications for beneficiaries.
Did you know that many Canadians are not adequately prepared to pass on or inherit family wealth? This is often due to a lack of communication and planning. The good news is that it’s never too early or too late to start. Planning helps you identify tax saving opportunities, mitigate potential financial gaps and maximize your current lifestyle.
The lifetime capital gains exemption (LCGE) is one of the key tax planning advantages available to small business owners, farmers, and fishers. In 2021, it can exempt from tax up to $892,218 of capital gains realized on the sale of shares of a qualified small business corporation and up to $1 million of capital gains realized on the sale of shares of a family farm or fishing corporation.
In response to the COVID-19 pandemic, employers have embraced an environment where employees work from home. With the opportunity to work from home, some Canadians are taking the opportunity to work from anywhere. For some that means working from the cottage or working from a foreign location. Before you switch from working from home to a location of your choice, there are a few things that you should consider.