New Mega Deduction a Good Start, But More Tax Reforms Are Needed

The Federal government has unveiled a Productivity Mega Deduction, which will provide immediate expensing under Capital Cost Allowance (CCA) provisions for a broad range of depreciable property, importantly on a permanent basis, for acquisitions on or after September 15, 2026. Check out the noteworthy exclusions are listed below. This tax reform is a good start, but much more needs to be done, especially for small business owners and average taxpayers to make Canada truly competitive across our tax base.

Are retired Canadians turning to you for help when they’ve been subjected to Old Age Security clawbacks? If you are a professional in the tax and financial services industry, its your job to provide valuable advice to pre-retirees on this complex issue, and help them avoid the Pension Recovery Tax that could take a chunk out of their retirement income.

The clock is ticking! Do you have everything you need to file your taxes before the April 30 deadline? Rushing through the tax preparation process can cause you to miss important steps, putting you at risk of an audit. This is your guide to the basics, and Knowledge Bureau’s Tax Documentation Checklist will take you the rest of the way in preparing an audit-proof return. Be sure to contact us for your copy, or click on the link provided!

On March 28, 2018 Ontario released what has been widely considered to be a “Pre-Election Budget”. Aside from large spending increases, it features changes to Ontario’s tax rate structure, which so far have received little fanfare. Seven tax brackets result in personal tax increases for almost two million people; in addition, 20,000 private businesses will pay at least $2,400 more in health taxes.

Did you know that there are more changes coming to the Canada Pension Plan in 2019? Most Canadians are unaware, and even those in the know find that the CPP planning process is quite confusing. There is opportunity here for tax and financial advisors to help bring their pre-retiree clients up to speed before the end of tax season.

Last week we discussed the deductibility of interest and penalties levied by the Canada Revenue Agency. In Part two of this series, we’re taking a closer look at the deductibility of interest costs on your investments.

Are you a Canadian army veteran looking for your next career opportunity? The new Veterans' Education and Training Benefit supports your educational pursuits in the tax and financial services.  Knowledge Bureau courses and programs are eligible, and convenient: available online for continuous intake, 24/7. They provide new credentials for skills that are in high demand.