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.

The April 16 Federal Budget proved once more that one of the most important skills people working in the financial services can offer is a deepened knowledge of personal, corporate and trust filing requirements. This is an essential financial service to help households navigate the increasingly broad – and expensive - reach of the CRA, especially for investors and business owners.  Knowledge Bureau’s suite of newly updated certificate tax, bookkeeping and retirement planning courses are now available online, together with a special offer.  Course benefits and descriptions follow:

Governments are long on promises but short of money these days, as deficits grow both provincially and federally.  Will prior tax preferences be maintained in the next federal budget, or will they be clawed back?  Here are some provisions worth watching:

CRA may be taking a closer look at interest deductibility costs now that interest rates are higher and that line item on the tax return contains bigger numbers.  Tax deductible interest paid on money borrowed to earn investment or business income  must be justified with back up documentation that includes the demonstration of use of the funds, which is always more complicated with a line of credit, for example, has mixed personal and business/investment uses.  Here is what you need to know: 

Did you know that 93% of Canadians voluntarily participate in the tax system, with 90% filing on time every year?  Not only that but 91% of Canadians pay their tax liabilities on time.  Recently the trust factor has been declining according to CRA’s performance indicators and, with the faulty implementation of two new taxation regimes in Canada, there have been calls for accountability in CRA procedures.  However, this may be somewhat unfair to CRA, as tax law-making begins with the Federal Budget; the next one on April 16.  Here’s what’s at stake:

Tax, accounting and financial advisors who have deep and broad knowledge about tax efficient retirement income planning, starting with the options available to defer the OAS and CPP pension can provide a valuable added service to a broad base of clients in all three stages of retirement:  pre-retirement, the “in-retirement” period and post-retirement, when survivors seek clarity about survivor benefits.  And there is a wide knowledge gap, as discussed below. For these reasons receiving a professional certificate on the completion of the Knowledge Bureau’s Tax Efficient Retirement Income Planning course is an important investment. 

The Acuity Conference for Distinguished Advisors (DAC) takes place November 10-12 in Montreal, Quebec and we are pleased to welcome the thought leadership of many returning education partners to the stage. The speakers from these organizations are ready to wow the highly-engaged audience at the only multi-disciplinary conference for professionals in the tax, accounting and financial services. Register or partner with us by the June 30 early-bird deadline to save on delegate and sponsorship fees.