Mid-Summer Reviews: When to Collect OAS and CPP

Did you know that 61% of Canadians are afraid of running out of money during retirement? According to a new CPP Investments survey, that fear is widespread. Yet surprisingly few people understand even the basics of public pension planning. For example, Canadians are not obliged to begin OAS or CPP at age 65. By delaying, they can significantly boost after-tax income and improve retirement security.

Investors in residential real estate – both non-residents and some Canadians - must file their first UHT return by October 31.  Beyond this, a small but important window is available to prepare individuals, trusts and private businesses for new tax eroders before the end of 2023.  For these reasons, Knowledge Bureau is presenting four important professional development days – November 1, January 17, 25 and 26, accompanied by new online micro-course collections.  Details below.

According to the 2024 Canada Salary Guide released by Robert Half, Competition is intense for skilled finance and accounting talent, and top candidates often receive multiple job offers. Some employers prefer to hold out for experienced professionals with in-demand skills, but that approach can result in overlooking high-potential candidates. To overcome staffing gaps, managers are considering people who may need technical training but have polished soft skills. Knowledge Bureau’s programs and courses leading to specialized credentials can help prepare business owners in the field with technical training their new hires need in tax and accounting.

We’re less than a month away for DAC Acuity 2023 at the Banff Springs Hotel, and the agenda features a tax planning powerhouse ready to help you prepare for tax season 2024.

 Canadians spent $34 billion on prescriptions in 2018, and it’s no surprise that statistics show that older people consume more prescription drugs than the young. In fact, drugs are the second biggest expenditure in health care after hospitals. We also spend lots on doctors. It’s an important consideration for your Baby Boomer clients who will all be aged 65 and older by 2031, especially as a national pharmacare program will not be on the horizon until at least 2027. But, for this year, progress is being made on the new Canada Dental Care Plan.  What’s important is to keep all receipts immediately. Here is an overview of what’s on the horizon:

Business owners who received the Canada Emergency Business Account (CEBA) loan and have not yet repaid it will likely be aware of a small extension in the required repayment date.  The loan was due on December 31, 2023 in order to preserve the forgiveness of a portion of the loan. The date is now January 18 or for those who are refinancing to make the payment, March 28.  However, there is a devil in the details to pay special attention to:  the December 31, 2023 deadline still applies for some. For others a missed interest payment could throw the forgivable portions offside.

The term "Snowbird" refers to a person who is ordinarily resident in Canada but spends part of the year in the U.S.  There are a significant number of such individuals. It is estimated over a million Canadians travel south for the winter – mostly between the ages of  50-69 - to popular sunny states like Florida, Arizona, New Mexico and California as well as other sunny destinations in Mexico, Panama and Costa Rica. Many businesses cater to such individuals in Canada and in the foreign countries they visit and buy properties in.  This is especially true of tax, legal and financial advisors, too, because there are costly tax traps to avoid.