Claiming Medical Expenses: Free Healthcare?

Free Health Care? Did you know that Canadians spend on average more than $1,000 on medical expenses each year? It’s estimated that government programs, via our taxes, cover about 72% of medical expenses, which means that we pay for the rest. Your clients may be over-paying on their taxes because they don’t know about medical expense deductions. 

Almost 100 years ago, notorious gangster Al Capone was finally caught in 1924 – on tax evasion charges. His “crime boss” days came to an abrupt end when he was imprisoned. Earning illegal income, it turned out, was taxable. That’s true in Canada as well. As tax professional what’s your process for uncovering and reporting this income? Consider the following:

Hudson's Bay has received a judge’s permission to auction off 4,400 artifacts and art pieces which includes the 355-year-old royal charter that launched the company.  Did you know that the buyer may qualify for a little-known donation tax credit if that property is subsequently donated to an institution of public authority designated by the Minister of Canadian Heritage?  This opportunity in fact should be incorporated as part of the high value professional discussions astute tax and financial pros can have with their clients in possession of such treasures. 

In a rapidly evolving tax and estate planning landscape, one topic has stood out for its complexity and controversy: Bare Trusts. These once quietly used tools for holding family cottages, minimizing probate, or preserving privacy have now found themselves under the microscope of new CRA reporting requirements.

Small businesses remain the cornerstone of the Canadian economy, accounting for 98% of all employer businesses and employing over two-thirds of the private labour force, according to Statistics Canada. Yet, in today’s volatile economic climate, these businesses face growing challenges: persistent inflation, a high cost of borrowing, and significant workforce shortages. For many owner-managers, the need to build scalable, resilient enterprises has never been more urgent. Today’s small business owners need more than just technical advice—they need leadership, clarity, and vision.

There are numerous funding options to help make your professional studies more affordable, including financing available through Knowledge Bureau, funding through each student’s own tax-assisted savings plans, and tax assistance through various CRA tax incentives. However, what can be deducted depends on who you are and what programs you will be involved in.

Tax professions know that not every client will file their income taxes on time, and that’s a costly mistake. Did you know that each year over three million Canadians file past the deadline? Those late filers are losing big money. First if they are due a refund, they are losing out on the money that could be accruing in a TFSA, RRSP, FHSA or another tax savings account.  But there is a second, more expensive consequence, one that will increase in the future, too.