Red Ink on the Prairies

A day after Quebec’s Finance Minister Eric Girard brought down a Budget featuring a $6.3 Billion deficit, Saskatchewan’s Finance Minister Jim Reiter tabled his government’s budget on March 19. Next up was Finance Minister Adrian Salas, who tabled the Manitoba Budget on March 24. The common thread: there’s lots of red ink on the Prairies. But that’s where the budget documents differ between Manitoba and Saskatchewan. Here’s the latest tax news and why it matters to the advice you give your clients.

Prescribed interest rates have remained unchanged throughout the pandemic and will remain at 1% for the fourth quarter of 2021.  It’s a good idea to discuss this opportunity with clients well before year-end, while CRA’s prescribed interest rate for interspousal loans is still at this low level. It’s a tax planning ritual not-to-be-missed, especially with high net worth clients.

Take a sneak peek now the educational extravaganza about to unfold October 17 – 19.  Join Evelyn Jacks, President, in conversation with Canada’s leading financial minds – a preview is now available in video. The Globe and Mail touted DAC as one of Canada’s most innovative virtual conferences last year. This year, we think we’ve raised the bar even higher!  Check out this sneak peek through our new speaker videos and DAC-in-a-Box program guide. Enrol by October 8 to receive your DAC-in-the-Box. Final registration deadline is October 15.  Don’t miss it!

Build the tax accounting and financial services practice of the future.  Real Wealth Management™ democratizes the Family Office concept previously only available to ultra-high net worth families.  Now, experienced advisors in Canada can learn to practice holistically with their best tax foot forward – such a critical piece of the capital sustainability puzzle for wealth holders.

Still in a health care emergency that in the short term continues to cloud economic recovery, Canada’s new minority Liberal Government will lead the country through the next phase of the pandemic and into what well could be a period of higher inflation, interest raters and taxes. 

The Accounting Place is hiring!  We currently are looking for an experienced full-time permanent Tax Specialist to work in our office located in Stoney Creek, ON.  For full details and to apply for this position, please visit our website.

Advisors should be aware of the definition of principal residence and the Canadian tax implications regarding the sale of a principal residence. Awareness of the provisions outlined in this article will provide detailed information about qualifying for the principal residence exemption and calculating the optimal time to dispose of capital real property. This is part 1 of a 3 part series on the topic.