The Gateway:  Maximizing the Impact of the Disability Tax Credit

In addition to reducing income tax through a non-refundable credit, the Disability Tax Credit (DTC) serves as a gateway to a wide range of additional tax benefits and government programs. Eligibility for the DTC can unlock enhanced credits, financial supplements, and long-term savings opportunities that go well beyond the tax return. Understanding how the DTC connects to these broader supports is essential for maximizing financial stability—both for individuals living with disabilities and the family members who support them.  Unfortunately, many taxpayers miss this credit and their tax and financial advisors can certainly help when this happens.

One important change has been introduced that affects payroll processing in 2019: the rate applied to calculate the maximum Employment Insurance (EI) contribution amounts have been reduced, though benefit amounts remain the same.

It’s been a complex year of significant tax change, and our six-city CE Summit Workshop tour gave many tax and financial advisors a comprehensive refresher to prepare for the upcoming tax season.  If you missed it, the 355-page Knowledge Journal can still be purchased. Here’s what our delegates liked best about this sold out event:

Who will inherit the family business?  What will it be worth when time for transition comes? Why is this issue so difficult to discuss? There are many reasons, but demographic change is bringing it to the forefront and for these reasons, planning needs to happen sooner rather than later, according to a new book by Jenifer Bartman and Evelyn Jacks, entitled Defusing the Family Business Time Bomb.

Canada now has a nationwide standard for reducing carbon pollution, which means that starting in 2019, a federal “backstop” carbon pollution pricing system will apply to four provinces – Saskatchewan, Manitoba, Ontario and New Brunswick – that have not implemented their own systems. For taxpayers in these provinces, a new refundable tax rebate will be claimed on the 2018 tax return. But, like most tax provisions, it has its wrinkles.

Transitioning a business can be an emotional period of your life as an entrepreneur. True leaders, however, embrace the fact that businesses need succession plans and that sometimes these businesses can even outgrow the skills of the founder. Knowing when to let go is probably the hardest business decision you will make as a business but your trusted tax and financial advisors can help.

Late last week RBC lowered its fixed mortgage rate and it’s likely that the other big banks will soon follow suit. This gives Canadians more breathing room to get mortgage debt under control. The big question to consider is whether fixed or variable mortgages are right for you.