The CRA TSlip Saga: An Update

This tax season has been particularly challenging for both taxpayers and tax professionals. The Canada Revenue Agency (CRA) provides tax information slips—such as T3, T4, T5, and their variations—through secure online portals: My Account and Represent a Client (RAC). This year, there were lots of problems with these portals, and now, it appears, CRA is not being quite transparent about when the slips were actually visible to clients and that doesn’t seem fair. Here’s an update on where we stand now.

Are you training your team this fall? Now is the time to take advantage of our lowest tuition fees of the year, and enhance your team’s specialized credentials from our Distinguished Master Advisor (DMA™ Designation Program) or Real Wealth Manager™ Programs and introduce new Specialized Credentials to your team’s training plan! Choose from Personal or Corporate Tax, Accounting, Retirement, Small Business Management and Wealth Management streams.

Are you ready to celebrate and network with the best thought leadership in the tax and financial services at the 2024 Acuity Conference for Distinguished Advisors? Don’t miss the final opportunity for early-bird savings and reserve your spot by September 15, your tuition includes the Wine and Cheese Meet & Greet (exclusively for KB Designates), the Opening Reception and Knowledge Bureau Awards Dinner on Sunday, November 10. Then on November 11, you’re invited to join us the beautiful Rialto Theatre for the Acuity Gala for Distinguished Advisors. Details below:

Special Back to School Tax Tips Issue: It’s Back to School and that means it’s time to think about how the tax system works to help support parents, students and employers.  In this Special Knowledge Bureau Report, refresh your memory on the tax deductible do’s and don’ts when it comes to funding education through the tax system. There are two common ways to do so from investment accounts that may have been set up for these purposes.  First there are the Education Assistance Payments available from the Registered Education Savings Plan (RESP).  You may also consider the Lifelong Learning Plan under the RRSP withdrawal rules.  Here’s what to know:

Most people know that the tax system allows for a non-refundable tax credit on the T1 known as the Tuition Fee Amount. But, you need to have taxes payable for it to work to your advantage.  If you don’t the claim may be transferred from the student to the supporting individual – a parent, a spouse or a grandparent. But there is a maximum limited:  only $5000 can be transferred and unfortunately this amount is not indexed to inflation.  It’s a tax reform change that is long overdue as the cost of education has increased over the years.

This fall, more students may be stressed by debt and one of the reasons why is the repayment of the CESB.  In 2020, students could qualify for the Canada Emergency Student Benefit of $1,250 for a 4 week period for a maximum of 16 weeks.  An extra $750  for a total of $2000 per month was available if the applicant had a disability or dependants.  But now there is a cash flow problem for some students:

Effective August 1, new 30-year mortgage amortizations are available for first-time home buyers purchasing newly built homes. For our August poll we asked tax and financial professionals if this is an option they’d recommend to their clients, and there was an interesting mix of votes, 66% said “no”, but 34% said they would – their comments provide great insight for homeowners who may be eligible for this program.