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Planning Ahead Eases Tax Audit Worries

A letter arrives from Canada Revenue Agency (CRA). You are being audited. Panic ensues as you wonder what you did wrong and why the CRA is targeting you. ‘There must be bigger fish to fry,’ you might say to yourself. The first thing you need to do is relax and

Read More...

Tax Saving Strategies for Sole Proprietors

Sole proprietorships are the most basic form of business organization. They are actually an extension of the person and are taxed as such. Due to its simplicity, many business start-ups begin as this form of organization. As your business grows, there are numerous taxation benefits to setting it up as

Read More...

New Tax Planning Opportunities

Canadians have various existing tax reduction opportunities to consider for their own personal situations and one NEW strategy arrives this spring: First Home Savings Account (FHSA).   The FHSA has a few unique features versus the already existing Home Buyers Plan. To start, any Canadian over the age of 18

Read More...

Tax Tips for Sole Proprietors

Freelancer, self-employed, contractor, independent, temporary or gig worker and entrepreneur are all terms used to describe sole proprietors. While sole proprietorship isn’t new, it is most definitely on the rise. Sole proprietorship – popularly referred to as “gig work” or the “gig economy”- is fast becoming a thriving industry in

Read More...

TFSA Notices And Penalty Risks

The latest Federal Budget included an administrative rule change1 that allows CRA to automatically send you notices electronically without your prior permission or registration. The risk, as noted in the recent case of a B.C. taxpayer, is this may lead to penalties for TFSA over contributions. It is your responsibility

Read More...

Tax Planning for Severance Packages

Over the past year, economic stresses worldwide have resulted in many employees receiving severance packages and being advised that their services are no longer required. The longer you’ve been employed with an organization, the higher your severance package will be. With the national job market still experiencing varying levels of

Read More...

Feel Good Tax Relief

Carl and Cathy are well aware of the substantial tax advantages of making charitable contributions as well as the good feeling they get by helping their favorite charity. In addition to their annual contributions, they would like to bequeath more substantial amounts to their chosen charity in their wills. Some

Read More...

Maximize Your RRSP Return Through Asset Location

Do you know the real rate of return on your investments? Generally, Canadians measure the success of their investments based only on the rate of return. While it provides a good snapshot of whether an investment is doing well or not, it is not the only criterion for a true

Read More...

Advice for Small Business Owners

Similar to the situation of individual Canadians, small business owners must deal with a variety of financial challenges in order to grow their businesses. Besides managing issues like cash flow and assets, small businesses must also think about taxes on income.   Without a doubt, tax return filing can be

Read More...

A Little Knowledge Can Make Life Less Taxing

It doesn’t take long after receiving your first paycheck to realize that all of your money is not your own. The Canadian government is an active partner in your earnings, and the more money you make, the larger it takes.   A better understanding of taxes and how they apply

Read More...

Proposed Tax Overhaul for Private Corporations

Standard financial and tax planning advice for the past several decades for business owners has included the use of incorporation to both insulate Canadians from business risk and liability and for asset building and income cash flow planning.   The validity of this tax policy is now under attack, as

Read More...

Build Your Wealth Together

The wedding and honeymoon are over and you’re settling in to your new life. You’ve accomplished many goals together over the past year with compromises being made over wedding plans, honeymoon destination, and a million and one other details. As you settle in for a long and fruitful life together,

Read More...

Year End Tax Tips

With a few weeks to go before the year-end, you may wish to think about some moves you can take now to save you some taxes for 2016.   Along with the usual advice to do any tax loss selling before December 23rd on any equity investments to offset any

Read More...

Federal Budget Impacts Investment Taxation

The recent Federal Budget included measures to close a favorable tax rule for investors in investment accounts or through corporations, trusts and holding companies, who have proposed rules to curb the tax advantages of “corporate class” mutual fund shares.   Corporate class funds are organized as “switch funds” that offer

Read More...

The Big Squeeze!

“Everyone wants to live at the expense of the state. They forget that the state lives at the expense of everyone.” – Frederic Bastiat   By the time that you read this article, it is very likely that the Federal elections will soon be over. When all the back slapping,

Read More...

Life Insurance Tax Rules Changing

Starting in January 2017, the allowable cash value build up under tax rules in life insurance policies will change. The federal government introduced changes in December 2014 that are designed to modernize life insurance exempt testing rules as they have discovered that people are living longer and that their insurance

Read More...

Tax Avoidance Strategy: Pension-Splitting

One out of every three workers is covered by a registered pension plan (RPP). That’s over 6 million people. Like all hard-working Canadians, they are looking forward to a satisfying retirement. Nothing helps create a pleasant experience in your golden years like a steady stream of income every month.  

Read More...

Year-End Tax Planning Ideas

The following are some ideas for individuals and business owners to reduce income taxes as 2014 draws to a close.   Individuals should consider doing their RRSP contributions before the RRSP rush in the first 60 days of 2015. You can get better values by buying today than when all

Read More...

How to Benefit from Being Charitable

Charities play a vital role in our society. The Canadian government recognizes this role and tax breaks exist to encourage taxpayers to give to their favorite charities.   Roger makes occasional donations to various charities. His donations are rather small and amount to only a few hundred dollars per year.

Read More...

Home Ownership Can Be Less Taxing Than You Think

Front lawns across Canada are sprouting For Sale signs. That this annual phenomena occurs at about the same time as the tax refund season may be purely coincidental. Understanding the financial incentives for home ownership available in the Income Tax Act may save you thousands when buying a home.  

Read More...

Planning Ahead Eases Tax Audit Worries

A letter arrives from Canada Revenue Agency (CRA). You are being audited. Panic ensues as you wonder what you did wrong and why the CRA is targeting you. ‘There must be bigger fish to fry,’ you might say to yourself. The first thing you need to do is relax and

Read More...

Tax Saving Strategies for Sole Proprietors

Sole proprietorships are the most basic form of business organization. They are actually an extension of the person and are taxed as such. Due to its simplicity, many business start-ups begin as this form of organization. As your business grows, there are numerous taxation benefits to setting it up as

Read More...

New Tax Planning Opportunities

Canadians have various existing tax reduction opportunities to consider for their own personal situations and one NEW strategy arrives this spring: First Home Savings Account (FHSA).   The FHSA has a few unique features versus the already existing Home Buyers Plan. To start, any Canadian over the age of 18

Read More...

Tax Tips for Sole Proprietors

Freelancer, self-employed, contractor, independent, temporary or gig worker and entrepreneur are all terms used to describe sole proprietors. While sole proprietorship isn’t new, it is most definitely on the rise. Sole proprietorship – popularly referred to as “gig work” or the “gig economy”- is fast becoming a thriving industry in

Read More...

TFSA Notices And Penalty Risks

The latest Federal Budget included an administrative rule change1 that allows CRA to automatically send you notices electronically without your prior permission or registration. The risk, as noted in the recent case of a B.C. taxpayer, is this may lead to penalties for TFSA over contributions. It is your responsibility

Read More...

Tax Planning for Severance Packages

Over the past year, economic stresses worldwide have resulted in many employees receiving severance packages and being advised that their services are no longer required. The longer you’ve been employed with an organization, the higher your severance package will be. With the national job market still experiencing varying levels of

Read More...

Feel Good Tax Relief

Carl and Cathy are well aware of the substantial tax advantages of making charitable contributions as well as the good feeling they get by helping their favorite charity. In addition to their annual contributions, they would like to bequeath more substantial amounts to their chosen charity in their wills. Some

Read More...

Maximize Your RRSP Return Through Asset Location

Do you know the real rate of return on your investments? Generally, Canadians measure the success of their investments based only on the rate of return. While it provides a good snapshot of whether an investment is doing well or not, it is not the only criterion for a true

Read More...

Advice for Small Business Owners

Similar to the situation of individual Canadians, small business owners must deal with a variety of financial challenges in order to grow their businesses. Besides managing issues like cash flow and assets, small businesses must also think about taxes on income.   Without a doubt, tax return filing can be

Read More...

A Little Knowledge Can Make Life Less Taxing

It doesn’t take long after receiving your first paycheck to realize that all of your money is not your own. The Canadian government is an active partner in your earnings, and the more money you make, the larger it takes.   A better understanding of taxes and how they apply

Read More...

Proposed Tax Overhaul for Private Corporations

Standard financial and tax planning advice for the past several decades for business owners has included the use of incorporation to both insulate Canadians from business risk and liability and for asset building and income cash flow planning.   The validity of this tax policy is now under attack, as

Read More...

Build Your Wealth Together

The wedding and honeymoon are over and you’re settling in to your new life. You’ve accomplished many goals together over the past year with compromises being made over wedding plans, honeymoon destination, and a million and one other details. As you settle in for a long and fruitful life together,

Read More...

Year End Tax Tips

With a few weeks to go before the year-end, you may wish to think about some moves you can take now to save you some taxes for 2016.   Along with the usual advice to do any tax loss selling before December 23rd on any equity investments to offset any

Read More...

Federal Budget Impacts Investment Taxation

The recent Federal Budget included measures to close a favorable tax rule for investors in investment accounts or through corporations, trusts and holding companies, who have proposed rules to curb the tax advantages of “corporate class” mutual fund shares.   Corporate class funds are organized as “switch funds” that offer

Read More...

The Big Squeeze!

“Everyone wants to live at the expense of the state. They forget that the state lives at the expense of everyone.” – Frederic Bastiat   By the time that you read this article, it is very likely that the Federal elections will soon be over. When all the back slapping,

Read More...

Life Insurance Tax Rules Changing

Starting in January 2017, the allowable cash value build up under tax rules in life insurance policies will change. The federal government introduced changes in December 2014 that are designed to modernize life insurance exempt testing rules as they have discovered that people are living longer and that their insurance

Read More...

Tax Avoidance Strategy: Pension-Splitting

One out of every three workers is covered by a registered pension plan (RPP). That’s over 6 million people. Like all hard-working Canadians, they are looking forward to a satisfying retirement. Nothing helps create a pleasant experience in your golden years like a steady stream of income every month.  

Read More...

Year-End Tax Planning Ideas

The following are some ideas for individuals and business owners to reduce income taxes as 2014 draws to a close.   Individuals should consider doing their RRSP contributions before the RRSP rush in the first 60 days of 2015. You can get better values by buying today than when all

Read More...

How to Benefit from Being Charitable

Charities play a vital role in our society. The Canadian government recognizes this role and tax breaks exist to encourage taxpayers to give to their favorite charities.   Roger makes occasional donations to various charities. His donations are rather small and amount to only a few hundred dollars per year.

Read More...

Home Ownership Can Be Less Taxing Than You Think

Front lawns across Canada are sprouting For Sale signs. That this annual phenomena occurs at about the same time as the tax refund season may be purely coincidental. Understanding the financial incentives for home ownership available in the Income Tax Act may save you thousands when buying a home.  

Read More...