This Month’s Poll

The automobile deduction limits raised — the CCA ceiling for passenger vehicles to $39,000 plus tax for 2026. In your opinion, is that high enough?

U.S. tax filers, including American Citizens living in Canada, will have received Economic Income Payments (EIP) based on income levels reported on their 2018 and 2019 tax returns filed in the U.S. Now CRA has confirmed in a technical bulletin issued August 31 that there is more good news:  the payments will not be taxable to residents in Canada.

According to a news release from the Canadian Securities Administrators (CSA), final rules were adopted to ban the payment of trailing commissions by fund organizations, such as order-execution only (OEO) dealers who don’t make investment suitability determinations.

The true financial test on how well Canadians will weather the financial storm brought on by the pandemic will occur in the months to come. A glimpse into that future is well described in a June 2020 report from the Bank of Canada. It suggests three catalysts, working together, that can lead to successful financial recovery:  

Should you buy a new car before year end to reduce your 2020 taxes?  It’s a good question especially because lucrative new tax rules were put into place for the write-off of most capital assets* on November 21, 2018.  Taxpayers can in fact, triple up on the usual first-year tax deductions when they acquire assets in the period between November 20, 2018, and December 31, 2023, and put them into use before 2028.  

We now have a better idea about the audit techniques CRA will have at their fingertips to ensure the Canada Emergency Response Benefits (CERB) received by laid off or furloughed employees, The Canada Emergency Student Benefit (CESB) and the Canada Emergency Wage Subsidies (CEWS) received by employers are validated. The numbers will appear on a new T4 slip, which is likely to cause a few headaches for small employers and create some new opportunities for bookkeepers and tax accountants. Here are the details:

Income inequality has been a topic of discussion for decades.  Now, with the pandemic as the catalyst, the advent of the CERB and future income uncertainty have brought this issue and a broader one – the right to a basic minimum income – some increased momentum.  There may be a simpler solution to help people immediately, and at the same time remove the controversy around incentives to work.