$10,000 TFSA Room Possible

Family income splitting and increased TFSA contribution room to $10,000 are on the horizon for Canadian families, said the Prime Minister last week, as Canada heads towards a small budgetary shortfall in the 2014-2015 fiscal year, as reported on October 6.

In 2013–14, the deficit fell to $5.2 billion and is down by more than 90 per cent from the $55.6-billion deficit recorded in 2009–10.

"These tax and investment changes would make investment planning a significantly more fruitful exercise for Canadian families and help them build real wealth," says Evelyn Jacks, President of Knowledge Bureau.

“The next generation of retirees may be looking at a tax free pension thanks to the TFSA, which is quickly becoming a key asset in retirement planning,” said Mrs. Jacks. “Family income splitting will provide the new money for many families to fund the new limits.”    

Knowledge Bureau has crunched some numbers to ascertain winners and losers in various provinces. These planning opportunities will be discussed in upcoming articles and Distinguished Advisor Workshop events.

As a result of the good financial news, it is expected that new tax measures could be announced as early as the end of October this year, according to reports in the National Post.