When you leave a job, options include taking a lump-sum pension payout or leaving your pension intact. These tips will help you choose the best option for you.
Prescribed rate loans: Maximize a tax planning opportunity before July 1st Prescribed rate loans can be an excellent financial planning tool for many Canadians. They are one of the few remaining income-splitting strategies that could help you lower your family’s overall tax bill. While commonly used to split income between spouses, prescribed rate loans can also be used to efficiently...
64% of business owners want to transition their business in the next 10 years. However, 51% feel the next generation is not ready and 39% worry the next generation is uninterested1. Whether you plan to keep your business in the family for sell to a third party, how can you ensure your business is ready for the sale? Ensuring your...
A Tax-Free Savings Account (TFSA) is a great tool to build wealth for most Canadians while paying less tax. Although there are many benefits to investing in a TFSA, there can also be costly mistakes. This article outlines the eight most common pitfalls people encounter and how to avoid them. 1) Avoid making a withdrawal and replacing the withdrawal in...
Prescribed rate loans: An effective planning tool to reduce your overall family tax bill Prescribed rate loans can be an excellent financial planning tool and are one of the few income splitting strategies that remain for many Canadian families. The concept of income splitting encompasses any strategy that shifts taxable income from an individual with a higher marginal tax rate...
Year-end tax planning tips for business owners When most of us think of year-end tax planning, we typically consider our personal situation. Yet, there are many tax-opportunities for business owners to explore as we near the end of another calendar year. The following tips assume your business is unincorporated or your corporation has a December 31st year-end, although some tips...
Transitioning wealth: How ready is your family? 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...
As students begin to pay their tuition for the upcoming fall semester, it is important to know what fees and expenses can be deducted on this year’s tax return. This article will highlight some of the key deductions and credits that can help reduce your family tax bill for the 2021 filing year. Moving expenses A full-time student may be...
When is the right time to begin taking Canada Pension Plan (CPP) benefits? A core component of your retirement plan is the CPP retirement benefit (or Québec Pension Plan for Québec residents, which mirrors many aspects of the CPP). CPP offers flexibility as to when payments can begin, which affects how much you could receive. Familiarizing yourself with CPP provisions...
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...
Working from anywhere: Tax implications and other watch-outs 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...
While attention is often focused on funding retirement and wealth transfer to the next generation, susceptibility to fraud often goes unnoticed.