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.

The April 21 Federal Budget adjusted the minimum RRIF withdrawal rates Canadians must apply to their taxable incomes in their retirement years.

Most people hate paying taxes but not far behind is their dislike of paying for tax and other professional financial services. However, value propositions for clients can be increased when they understand how professional fees are being claimed to their advantage on their tax returns.

Even at the end of tax season, some last minute tax tips can help clients and their families win extra dollars this year – or possibly next.  There are some eyebrow-raising write-offs under the category of medical expenses for example, that might make a knowledgeable tax expert the most interesting person around the water fountain.

The 2015 Federal Budget introduced significant changes to Canadians’ finances.  The challenge now for most tax and financial professionals is deciphering these changes and putting them into action in a meaningful way for clients.

Knowledge Bureau is pleased to introduce Murray Leiter, who has recently updated the new edition of the Elements of Real Wealth Management course.

Tax breaks and economic incentives have been peppered throughout Canada’s pre-election budget document with savers, seniors and small business corporations emerging as big winners.