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.

RRSP and RRIF are retirement savings plans where investments grow on a tax-deferred basis.  When proceeds are taken from these accounts, the full amount withdrawn is reported on the RRSP/RRIF holder’s tax return as income. Can charitable giving reduce the tax sting?  Is that a smart strategy given the detailed tax rules that can leave a tax gap? Can planning now help keep assets invested as markets show signs of recovery?  Yes, but you need to do a little extra tax legwork.

Everyone is likely to have some out-of-pocket medical expenses during the year but many people don’t know that they can claim them.  Common examples are batteries for hearing aids, certain travel costs incurred to seek medical attention not available in your community or contact lenses for example. But there’s also a long list of expenses that can’t be claimed.  Can you name any of them?  The CRA offers a great list:

Only three weeks before the April 2, 2024 Trust Return filing deadline, the CRA released updated guidance indicated that gross negligence penalties will not apply for 2023 in most cases if taxpayers fail to file on time, except in the “most egregorious cases”. It’s good news that the government has decided to ease the penalty provisions for people who don’t file by April 2 as they try to decipher these new rules. When does a bare trust exist, and when do the rules apply? Here are some examples, based on a question submitted by one of our KBR readers and students, Connie Zhu.

The topic of discussion is Retirement, Trust and Estate planning chocked full of critical information you need to know as you work with clients to maximize their wealth potential.  You’ll be treated to an in-depth analysis of the April 16 Federal Budget, a Trust boot camp, and a great discussion on retirement and cottage succession planning.  You don’t even have to leave your office!  Here’s why Connie, Zhu, DMA enjoys the Virtual CE Summits so much:

Do you have the skills to provide the process and structure your clients will need to effectively plan for their retirement? Differentiate yourself, attract new clients and increase profits by providing a high value service as a trusted advisor to your clients as a DMA™- Retirement Income Services Specialist. Learn more risk-free by taking a free DMA™ Program Orientation!

Are you taking your exemption on foreign currency exchange gains?  Are you reporting them?  It’s part of some “ancient tax law” still with us today.  And some of those provisions are often forgotten. Here’s a few of them: