Seniors Targeted? The Tax Audits Begin
The Canada Revenue Agency (CRA) routinely reviews or audits tax filings, including personal, trust, corporate, and HST returns. The most common types of reviews that focus on personal tax returns include, but are not limited to, Pre-Assessment Reviews, Processing Reviews, and the Matching Program. This year there is a new focus: the Multigenerational Home Renovation Tax Credit introduced to help families better care for their elders. But claiming it, like other tax benefits, comes with a tax snare. Read on to learn more.Buying a Car Before Year End?
Should you buy or lease a new vehicle or computer before year end? It’s a great question for financial advisors and their clients to discuss before year end. Canada’s tax system has some excellent incentives for people in the market for buying business assets before year end. Here’s an overview of the provisions that were first introduced with the November 21, 2018 Fall Economic Statement:
Special guest Abe Toews Shares the Virtual Stage at CE Summits
Abe Toews, CFP, CLU, CH.F.C, CHS, Chair of the Board of Directors, Advocis will make a special guest appearance to discuss year end donations strategies as he shares the virtual stage with expert headliners at the November 18 Virtual CE Summit. The theme is focused planning for investors and self-employed taxpayers. Advisors who need to brush up on advanced planning, especially for corporate owner-managers, should mark their calendars and register no later than Monday, November 16.
Deadline Extended: Charity Returns
The deadline for filing Registered Charity Information returns was extended to December 31, 2020 for returns due between March 18, 2020 and December 31, 2020. However, the CRA’s Charities Directorate is also encouraging charities to file as soon as possible to avoid expected processing delays as a result of the high volume of returns that will be submitted around the deadline.
Medical Expenses: Will PPE Costs be Deductible?
Yesterday, Canada’s Chief Public Health Officer Theresa Tam announced that Canadians should be wearing triple-ply non-medical masks when in shared indoor spaces with people from outside of their immediate household, and when in close contact with others in public. It begs the question, will Personal Protective Equipment (PPE) and other health related costs be deductible? The answer is, it depends.
CPP Premiums Rise in 2021, Competing for TFSA Savings Capacity
The Canada Pension Plan (CPP) maximum contributory earnings for 2021 and the new premium rate have both risen, adding another financial burden to both workers and employers as the new year approaches. With required premiums of $6,332.90, eclipsing maximum TFSA contribution room of $6,000, there may be little left to save for a tax-free retirement. Further, there are several other reasons why this rising CPP obligation may bring the wrong after-tax results over the long run.
CRB Recipients: RRSP Contributions a Secret Weapon Against Clawbacks
Making an RRSP contributions by March 1, 2021 is a smart move by eligible recipients of Canada Recovery Benefits (CRB) if total net income will exceed $38,000. The reason? A very expensive clawback of the CRB.
