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Canada’s personal amounts and benefits will increase by 2.4% for 2022, a significant jump over past years’ rates. Canadians can now earn more before reaching the top of their tax brackets and benefit from higher income testing thresholds, too. This is a great trigger for planning, particularly for retirees. But here’s the bad news: this indexation rate does not come close to the recent rise in the cost of food, transportation and shelter.
The new tax filing rules starting November 2021 affect certain types of trusts, specifically express trusts and non-resident trusts. Trust returns will need to be filed for tax years ending December 31, 2021 by the tax filing deadline of March 31, 2022. Highlights on what these trusts are used for follows:
A recent study by the Canadian Institute of Actuaries sheds new light on the needs of Canadian retirees and pre-retirees for sound financial planning for their futures. COVID has had a dramatic effect on retirement plans, overall health and on preparedness for long-term care in the future. Surprisingly, more than half do not have a financial plan for retirement. This is an important time for astute tax and financial advisors to work more proactively with new and returning clients. Six planning tips follow.
Many proprietors in the tax industry are struggling to find qualified staff prepared for a complex 2022 tax season, and it’s coming up fast. Now is the time to train new and returning staff for filing season, and for Black Friday we’re extending our best offer of the year: only $395 per course (save 56%) when you enrol yourself or your team members in Basic Bookkeeping in a Digital World or Professional Income Tax Course – Entry Level certificate courses. Our goal is to help business owners prepare for another unprecedented filing season. As loyal Knowledge Bureau Report readers, you have an exclusive opportunity to take advantage of this training opportunity first.
2022 CRA limits further enhance the tax deductions that Personal Pension Plan (PPP) clients have over Individual Pension Plan (IPP) clients. The gap of $91,194 in 2021 is now almost $12,000 larger in 2022! Those of you who like to project the extra wealth your clients will enjoy over long periods of time thanks to the power of tax-deferred compound interest should rejoice at this news, according to JP Laporte and Knowledge Bureau Partner for the first annual virtual Pension Conference for Accounting Firm Partners and their staff taking place on November 30, 2021. RSVP now - who wouldn't want an extra $100,000 in deductions over an IPP during one's career?