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.

CNIL (generally pronounced senile) is the acronym for Cumulative Net Investment Loss.  Tracking CNIL started after December 31, 1987.  Most people don’t know why CNIL is so important and why tax software tracks it so carefully on a year-to-year basis.  But if you’re a small business owner counting on using your full Capital Gains Deduction, here’s what you need to know:

Investors need to quickly sharpen their tax and financial skills to meet more challenging times ahead, and a good way to start is to find the right advisor says Knowledge Bureau Founder and President Evelyn Jacks, best-selling tax financial author and award-winning educator.  That’s someone who is prepared to work with you holistically and with a multi-stakeholder approach to building sustainable family wealth – after taxes, inflation and fees. 

The World Economic Forum, which wraps up this week, signaled more gloomy economic news for 2023, more interest rate hikes to come, and a mild recession.  For worried investors, retirees and employees, particularly in the tech industry, shoring up new learning opportunities is a good idea.  Knowledge Bureau can help with a new series of Specialized Credentials and micro-courses that begins with a solid understanding of a key wealth eroder: TAX.

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Cryptocurrency can't stay out of the headlines - just last week (on their first joint statement on crypto) the Federal Reserve, Federal Deposit Insurance Corp (FDIC) and the Office of the Comptroller of the Currency (OCC) said they had concerns with the safety and soundness of bank business models that are highly concentrated in crypto. No government wants any 2022 problems sneaking up - a truly notorious year for cryptocurrency with the collapse of FTX.

Both the CPP and EI contributions – which are mandatory – have risen. This will reduce take-home pay for employees. However, for those who are self-employed and must pay both the employer’s and employee’s portion of the CPP, things are about to get much more expensive and that could start to crowd out critical TFSA and RRSP investments for their futures.