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Addressing Unfair Tax Changes, Morneau Makes a Second Attempt at Tax Reform

Posted: October 17, 2017 By: Evelyn Jacks
Posted in: Strategic Thinking, Current Issue , knowledge bureau, Evelyn Jacks, Small Business, Canadian economy, finance minister, income splitting, tax education, financial education, tax reform, entrepreneur, CE summits, Liberal government, Morneau, income sprinkling, unfair tax changes, Distinguished Advisor Workshops, Trudeau, reasonableness test, private corporation taxation, family businesses, small business tax rate

The Finance Department backtracked on a few of their controversial tax reforms for private corporations this week, adding a tax cut of $2.9 Billion over the next five years to douse the flames of discontent. However, family businesses will continue to face tax risk and uncertainty due to a “reasonableness” test – albeit a simplified one – that will limit income sprinkling to contributors of labor, risk or capital in the business.

It’s Official:  Government Is Moving Ahead with Tax on Passive Income

Posted: October 17, 2017 By: Evelyn Jacks
Posted in: Strategic Thinking, Current Issue , knowledge bureau, Evelyn Jacks, Small Business, Canadian economy, finance minister, income splitting, tax education, financial education, tax reform, entrepreneur, CE summits, Liberal government, Morneau, income sprinkling, unfair tax changes, Distinguished Advisor Workshops, Trudeau, reasonableness test, private corporation taxation, family businesses, small business tax rate

Finance Minister Morneau today announced that his department will move forward with their goal to tax passive investment income earned within private corporations.  What’s becomes apparent from the minimal details released, is that not much has changed in the government’s intentions, since the measures were first floated on July 18, 2017.

Small Business Capital Gains Deduction Part II: Multiplying the Deduction

Posted: October 17, 2017 By: Walter Harder
Posted in: Strategic Thinking, Current Issue , CRA, dividends, knowledge bureau, Canada Revenue Agency, Evelyn Jacks, Small Business, tax education, financial education, entrepreneur, income sprinkling, Capital Gains Deduction, distributing small business income, capital gains deductions

By issuing shares in a small business to family members, it is possible to multiply the capital gains deduction available to the family. A similar strategy allows for the multiplication of the deduction for family farms or fishing operations.

Advisors Addressing Impact of Rising Interest Rates on Canadian Families

Posted: October 17, 2017 By : Knowledge Bureau Staff
Posted in: Strategic Thinking, Current Issue , Debt Management, Financial Advisor, knowledge bureau, interest rates, Evelyn Jacks, mortgage, tax courses, Canadian economy, wealth management, tax education, tax professionals, CE summits, consumer debt, credit card debt, debt in Canada, debt management courses

The average Canadian with debt could have to pay an additional $130 per month for debt repayment, as interest rates are anticipated to rise over the next year. Advisors can help clients adjust to these changes – but what is the best strategy?

It’s Over 50% - Top 3% Pay More Than Their Fair Share

Posted: October 10, 2017 By : Knowledge Bureau Staff
Posted in: Strategic Thinking , CRA, Financial Advisor, knowledge bureau, Evelyn Jacks, income tax, Small Business, tax courses, Canadian economy, wealth management, tax changes, tax education, financial education, tax reform, Liberal government, Morneau, Canadian Controlled Private Corporations, unfair tax changes, tax fairness, federal income tax, middle class taxation, entrepreneurs, CTF, high-income, government issues

Amidst calls by the federal government to improve “tax fairness,” a report by the Canadian Taxpayers Federation (CTF) shows that while a mere three per cent of all tax filers earn $150,000 or more, they contribute over one-third of all federal income taxes collected.

Capital Gains Deduction Series, Part I: The Basics

Posted: October 10, 2017 By: Walter Harder
Posted in: Strategic Thinking , Financial Literacy, CRA, knowledge bureau, Canada Revenue Agency, income tax act, Evelyn Jacks, income tax, tax deductions, tax education, financial education, small business tax, tax benefits, taxpayer, farming tax, fishing tax, agriculture tax, Capital Gains Deduction, corporation shares, disposition dates, spousal taxation, agricultural property, fishing property, business partnership, business taxation

With proposed changes looming to the eligibility for the Lifetime Capital Gains Exemption (LCGE), which becomes the Capital Gains Deduction on the personal tax return, tax and financial advisors are well advised to review the rules and have discussions with their clients on whether any year end planning opportunities should be pursued.