The CRA TSlip Saga: An Update

This tax season has been particularly challenging for both taxpayers and tax professionals. The Canada Revenue Agency (CRA) provides tax information slips—such as T3, T4, T5, and their variations—through secure online portals: My Account and Represent a Client (RAC). This year, there were lots of problems with these portals, and now, it appears, CRA is not being quite transparent about when the slips were actually visible to clients and that doesn’t seem fair. Here’s an update on where we stand now.

Investing in asset upgrades this year?  What can be written off over time?  The answer is increasingly cloudy. Recent tinkering with the tax system to promote certain economic activities has allowed for accelerated write-offs, but that has caused significant complexity.  With the introduction of an accelerated write-off of capital items purchased by a Canadian Controlled Private Corporation (CCPC) to a maximum of $1,500,000, the net tax consequences over the lifetime of the asset’s use require more thought. 

It is no secret that the dream of home ownership is getting out-of-reach for thousands of Canadians, not only in the major Metropolitan areas of the country, but also in the suburbs. Accessing the Home Buyer’s Plan within the RRSP is an important strategy that can help first time home buyers realize their dreams of home ownership.  It’s another reason not to miss the RRSP contribution deadline, coming up shortly on March 1.   

March 7, April 5 and May 5 are the deadline dates for providing your views on significant tax provisions that will implement legislation stemming from April 19, 2021, Federal Budget, many of which would have an in-force date of January 1, 2022, or January 1, 2023.  Interestingly, these consultations are scheduled throughout the busy tax season, making it difficult for tax specialists to find the time to comment.  If you do find the time, here are the submission topics: 

For Canadian tax purposes there are basically two kinds of trusts: testamentary and inter vivos. A testamentary trust is one that arises on and in consequence of an individual’s death. An inter vivos trust is any trust other than a testamentary trust. Trusts have been thrust into the spotlight recently with new tax filing requirements.  Knowledge Bureau has launched a new course to help advisors educate their clients. Here is a primer of what you will learn:

Are you interested in enhancing your value proposition and broadening your client service offering? Amplifying your referrals?  Becoming a holistic wealth advisor? Then you may be interested in learning more about the Real Wealth Managers RWM™ Designation – a new designation that differentiates collaborative financial leaders in the marketplace. You’re invited to join us for a complementary virtual Lunch & Learn on March 2 at 12 PM CST to learn more!

It’s the dream of millions of working Canadians to one day go into retirement and enjoy the golden years at home or abroad, retire on their terms, and harvest the fruits of their labours. According to a pre-pandemic (Feb 2020) Scotiabank Retirement Survey, 68% of Canadians are saving for retirement and the average amount expected to be needed was about $697,000. This is less than the 2017 average of $753,000. But the pandemic has changed retirement planning even further, and it’s important to discuss this before the March 1 RRSP deadline.