All items tagged with: income splitting

A Sigh of Relief Regarding Passive Investment Income: But No Grandfathering

Posted: March 06, 2018 By: Evelyn Jacks
Posted in: Strategic Thinking , Financial Literacy, small business finance, knowledge bureau, Evelyn Jacks, corporate tax, tax courses, finance minister, income splitting, tax education, tax reform, CE summits, Liberal government, Morneau, unfair tax changes, family businesses, tax workshops, financial workshops, online education, private corporation tax, passive investment income, budget 2018, small business deduction, grandfathering tax provisions, aggregate investment income, frostiak and leslie

Two new measures were introduced in the February 27, 2018 budget that curtail the advantages of investing inside a private corporation, starting in 2019. All was met with a collective sigh of relief, considering the flawed fall proposals. However, there is still a twist - no grandfathering provisions for private corporations under two new proposals:

Federal Budget 2018: Liberals to Unveil It on February 27, 2018

Posted: February 12, 2018 By : Knowledge Bureau Staff
Posted in: Strategic Thinking , Financial Literacy, knowledge bureau, Evelyn Jacks, Small Business, federal budget, tax courses, income splitting, tax education, entrepreneur, Liberal government, Morneau, unfair tax changes, online education, middle class, income tax changes, passive investment income, income tax credits

February promises to go out like a lion with yesterday’s announcement that the 2018 budget will be unveiled on February 27, 2018. It’s interesting timing. Other important milestones: CRA starts processing 2017 tax returns on February 26, the T4/T5 tax slip deadline is on February 28 and the RRSP filing deadline is March 1.

Budget 2018: Its Place in Canadian Tax History

Posted: February 06, 2018 By: Evelyn Jacks
Posted in: Strategic Thinking , Financial Literacy, CRA, knowledge bureau, Canada Revenue Agency, Evelyn Jacks, federal budget, tax courses, finance minister, tax changes, income splitting, financial education, tax reform, family wealth, Morneau, tax history, income sprinkling, unfair tax changes, business tax, online education, Edgar Benson, Tax Reform 1969, Royal Commission on Taxation

What should we anticipate in this year’s federal budget? Evelyn Jacks weighs in on the anticipated changes – and who will be affected by them - with signals already clearly evident from recently released Finance Canada documents.

Our Top Posts of 2017: What Are Financial Professionals Reading?

Posted: January 23, 2018 By : Knowledge Bureau Staff
Posted in: Strategic Thinking , tax credits, knowledge bureau, Evelyn Jacks, tax courses, tax changes, income splitting, financial education, tax reform, tax proposals, business owners, Morneau, online courses, small business taxation, online education, 2017, 2017 recap, 2017 news stories, family tax deductions, Parliamentary Budget Officer, cottage, principle residence, reporting property sale

It’s a sign of the times: Knowledge Bureau Report readers were most interested in recent tax news, based on our top five posts revisited here. The proposals to change the tax system for private corporations are of most concern; small wonder, too. Not yet law, Tax on Split Income (TOSI) rules begin January 1, 2018. Principle residence reporting changes are important too. Here’s what mattered most to our readers in 2017:

Anything But Simple: Morneau’s Income Sprinkling Rules Start January 1

Posted: December 19, 2017 By: Evelyn Jacks
Posted in: Strategic Thinking , Financial Literacy, CRA, capital gains, knowledge bureau, Evelyn Jacks, family business, retirement planning, investment income, tax courses, financial advisors, retirement income, wealth management, tax changes, income splitting, tax advisors, financial education, tax reform, small business tax, Liberal government, Canadian income tax, Morneau, income sprinkling, family tax credits, reasonableness test, capital contribution, private corporation tax, incorporated business

It’s official, family income sprinkling rules will take effect January 1, 2018, and, unless a family member can show active participation under still-complicated reasonableness tests, distributions of income from private family businesses will be taxed at top tax rates, with none of the progressivity in tax rates available to individuals. This will require an immediate rethinking of resources available to the economic unit known as the family business.

Focus on RRSP: Six More Year-End Tax Tips

Posted: December 19, 2017 By: Evelyn Jacks
Posted in: Strategic Thinking , Tax Planning, knowledge bureau, Canada Pension Plan, Evelyn Jacks, tax tips, retirement planning, rrsp, old age security, tax courses, CPP, wealth management, income splitting, financial education, online courses, year-end tax strategies, investment portfolio, RRSP contribution limits, dividend tax credit, severance and pension payments, RRSP contribution deadlines, Home Buyers’ Plan, security transfers, RRSP penalties, income tax installment payments

There is still time to consider your own unique RRSP tax strategy to reduce income and taxes and increase refundable tax credits for your financial gain in 2018. The RRSP contribution deadline is March 1, 2018. Following is the last of our series of a dozen tips to consider as the holidays begin and before this year ends: