Time is Running Out for First-Time Home Buyers to Save in 2024

Owning a home, once almost considered a right of Canadian citizenship, has become a more distant dream for millions. The high cost of housing, coupled with a desperate shortage of supply, has turned the notion of home ownership into a near impossibility for many Canadians and those who have arrived in our country more recently.  The Tax-Free First Home Savings Account (FHSA) can help but it’s important to open an account before December 31, 2024 to create and preserve the contribution room.

A new credential is available through Knowledge Bureau and it’s important because it will engage Millennials, GenX and Boomer co-horts in planning around their financial nemesis:  taxes.   The thoughtful  role of the DMA™ Retirement Income Services Specialist is critical in achieving required after-tax outcomes that can skillful lead to greater financial peace of mind of retirees, and those saving for retirement.  Plus, a comprehensive online program orientation is available to check out the curriculum risk-free!

And you thought tax season was over!  Three significant tax milestones loom in June and they require immediate attention now that the April 16 budget has increased the capital gains inclusion rate from 50% to 66 2/3% - a move potentially affecting up to 3 million taxpayers over the course of this decade.  It’s historic, because, not since 1988 – 36 years ago- has the capital gains inclusion rate changed.  This is a time for tax and financial advisors to shine, despite the fact that they are forced to advise with a blindfold:  the April 30 Notice of Ways and Means motion did not introduce the legislation for the massive changes to come.  Here’s what you need to consider: 

It’s springtime and for some that may mean a new car!   One of the most common deductions for self-employed individuals, certain employees who negotiate contracts on behalf of their employers, and employed commission salespeople, is the deduction for Auto Expenses.   They are also amongst the most frequently audited. There have been some changes to the rules for claiming these expenses in 2024.  Some details follow.

Canada’s tax system has been undergoing significant reforms.  The complexity and uncertainty caused by hurried tax law and a lack of readiness at CRA, have resulted in two last minute cancellations, most recently to  filing T3 returns for bare trusts - so far, only for the 2023 tax year.  Problem is, CRA, can still make a direct request for these filings.  KBR subscribers had mixed reviews about this, discussed below.  By April 16, taxpayers faced further complexity on their sound financial plans:  the proposed capital gains inclusion rate increase. Are these taxes on capital gains the wrong move at this time?  Consider the research and join us May 22 for a vibrant national discussion on what to do about it.

With all the news around the release of the April 16 federal budget in the busiest weeks of tax season, you may have missed what’s happened in provincial taxes for 2024.  Here’s a provincial tax round up to help you make sense of client queries you might get about relocations in 2024 as relates to personal tax changes.  Which is the best province to move to, from a tax filing point of view?  Personal tax budget highlights include:

Are you alarmed by the recent department of finance and CRA’s budget announcements? Are you feeling like you and your clients are drowning in quicksand? You don’t want to miss this Real Wealth Management Program orientation session, where you will have an opportunity to hear from 7 of Canada’s most influential thought leaders as they have a roundtable budget discussion. Learn more about the RWM™ Designation program and how a Real Wealth Management approach can help your clients achieve financial peace of mind through the collaborative multi-stakeholder strategies aimed at building sustainable inter-generational wealth after taxes, fees and inflation.