Back to School Tax Breaks

Like tax season, back-to-school season rolls around annually with certainty. But in today’s inflationary environment, the start-up costs for getting the family organizing for the school year may seem daunting. The good news is that tax and financial advisors can help clients understand their tax planning options and manage all the receipts that can lead to tax breaks later in the spring during tax filing time. Here’s a primer of topics you may wish to discuss:

There’s good news for Canadian families with young children: the first Canada Child Benefit Young Child Supplement (CCBYCS) payments will be issued later this month on May 28. The CCBYCS was initially proposed in the November 2020 Fall Economic Statement to help families cope financially during the pandemic. It received Royal Assent on May 6. Here’s how it works:

TFSA Advantages are back in the news. The CRA has issued a warning about a tax scheme that promises a tax-free opportunity to transfer funds out of an RRSP or RRIF into a TFSA, without regard to the annual TFSA contribution limit using an MIC. That is, a special-purpose mortgage investment company. Sophisticated investors with large RRSP or RRIF balances and significant equity in a personal residence were targeted and could soon be subject to audit. The scheme worked like this:

The stock market has been hot this year, and some investors have been cashing in. Dispositions in non-registered accounts will be taxable and in the case of securities, that can be complex.  Advisors who can illustrate the tax consequences with simple examples will add much-appreciated value. In this first of a series on capital gains and losses, we provide illustrations to assist in conversations, excerpted from the new Advanced Retirement and Estate Planning Course.

Of special interest to financial advisors, RWMs and experienced tax and bookkeeping professionals providing advice to their clients: the new Retirement and Estate Planning Update course is now available and includes the recorded instruction from the May 20 CE Summits.  It’s the perfect solution for those who can’t join us on May 20. Graduates earn 30 CE Credits and a full course credit towards the MFA™- Pension & Estate Services Specialist Designation Program. Take advantage of a long weekend special, too:

Knowledge Bureau is pleased to welcome back Investment Executive and Advisor’s Edge as the exclusive media partners for the 2021 Virtual DAC Acuity Conference from October 17-19.

A seasoned philanthropy professional, Kathy Arney has outstanding matchmaking skills.  She shares why the MFA-P™ Philanthropy Designation Program helped to improve them.