Knowledge Bureau Report

When Money is Tight: TFSA or RRSP?

By : Evelyn Jacks Posted in: Strategic Thinking, Current Issue
Is it better to invest your money into your TFSA or RRSP? It’s a choice many have to make between now and the March 2 deadline for RRSP contributions.  The date is important because missing it means you could miss out on increased Canada Child Benefits, or be subject to an expensive clawback of EI or OAS benefits.  We’ve done some calculations for you so here’s what you need to know:

BC Budget Raises Tax on Top Earners

By : Evelyn Jacks Posted in: Strategic Thinking, Current Issue
It is definitely a retirement haven,  and up until February 18th,  BC was somewhat of a tax haven as well.  Unfortunately, the top 1% of income earners in BC will pay $216 million more taxes starting January 1, 2020, as a result of yesterday’s provincial budget.  The top tax rate and income bracket has increased 3.7% from 16.8% to 20.5% on taxable incomes over $220,000.  This is a change that will affect marginal tax rates on various income sources, including retirement income, and taxable income on final returns of deceased taxpayers, as shown below:

Income Splitting Tip:  Invest in a Spousal RRSP by March 2

By : Evelyn Jacks Posted in: Strategic Thinking, Current Issue
The spousal RRSP is one of those often-overlooked gems in a long term retirement income planning strategy; one that you shouldn’t overlook in the RRSP top-up discussion before the March 2 deadline. It’s the contributor who gets the RRSP deduction based on his or her own RRSP room, but it’s the annuitant spouse that will draw on the money later, according to special rules. Here are six basic “must-know” tips:

It’s a Leap Year! Some Fun Facts, and a Special Offer…

Posted in: Strategic Thinking, Current Issue
Did you know about 5 million people in the world have birthdays every four years on a Leap Year?  Rumor has it they also have very special powers! With February 29, 2020 just around the corner, we are pleased to share some fun facts about Leap Year with you, along with some special powers  to take advantage of our Leap Year Tuition Special, which ends (you guessed it) on February 29!

Take in One of the World’s Eight Wonders: RSVP for DAC Acuity by February 29!

Posted in: Strategic Thinking, Current Issue
RSVP now to attend Canada’s premiere and longest running strategic conference for professionals in the tax, bookkeeping and financial services and lock in low tuition rates available to you - our very best clients - before the end of this month. But hurry, those rates will rise on March 1, and as always, you are welcome to custom-design your payment plan. 

Tax Season 2020:  Refunds Not Likely Before March

By : Evelyn Jacks & Paula Baker Posted in: Strategic Thinking, Current Issue
Filing a tax return is the first (and often most important) financial transaction of the year for most Canadian families. While Canadians love their tax refunds, they won’t start flowing this year until March, as CRA won’t accept your E-filed returns until Monday, February 24 and refunds likely won’t flow until at least March this year. Reality check: tax refunds are a poor financial planning strategy.