Back to School Tax Breaks

Like tax season, back-to-school season rolls around annually with certainty. But in today’s inflationary environment, the start-up costs for getting the family organizing for the school year may seem daunting. The good news is that tax and financial advisors can help clients understand their tax planning options and manage all the receipts that can lead to tax breaks later in the spring during tax filing time. Here’s a primer of topics you may wish to discuss:

CRA released its personal tax credits return on November 27 with few surprises.

Recently a group of professional organizations, including the Society of Trust and Estate Practitioners (STEP), expressed their concerns about amendments to the Income Tax Act (the Act), which received Royal Assent on December 16, 2014. The provisions, related to subsection 104(13.4), the tax treatment of trusts, come into effect on January 1, 2016. The Department of Finance responded to those concerns in an open letter on November 16, 2015, a summary of which follows.

The assets controlled by today’s 34-year-olds will quintuple in coming years, but only 17% of adult children have a relationship with their parents’ advisors. Ignoring them may be one of the most significant mistakes today’s advisor may be making.

Dynamic Funds emerged a winner of the prestigious national Investor Education Award at the Morningstar Awards on November 25, in a star-studded affair at the Royal York in Toronto.  The win was especially joyous for Knowledge Bureau, who wrote and produced a certificate course for advisors as part of the winning submission.

The next quarterly tax instalment deadline is December 15.   Surprisingly, almost 30% said no to Knowledge Bureau’s November’s poll question, which asked: “Canadians who have net tax owing of more than $3,000 for 2015 and in either of 2014 or 2013 must make quarterly income tax remittances. Should this threshold be increased?”

Mark your calendars for Knowledge Bureau’s annual, comprehensive personal tax update taking place January 20-25, 2016. This day-long certificate workshop will “shake out the cobwebs” for new and returning tax practitioners in tax, bookkeeping and accounting offices and is an excellent resource for financial advisors working with clients on tax-efficient wealth planning strategies during the busy RRSP season.