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:

Did you know that 21% of young boomers (ages 55 to 64) have not set anything aside for their retirement while 46% are considering a delayed retirement? This is according to a survey by 2019 DAC Sponsor Franklin Templeton*. That’s why it’s so important for financial advisors and pre-retirees (Gen Z and Boomers) to consider the question – “Should I delay my CPP or even my OAS?” A case study follows.

If the weather and flu season is already getting you down, remember it’s not too late to join us in sunny Puerto Vallarta for the Distinguished Advisor Conference.  We’d like to take this special opportunity to thank our wonderful sponsors who have made it possible for the outstanding educational sessions and speakers to deliver cutting-edge insights at the event. Most importantly, the networking events are outstanding. Your next big business opportunities await you.

In 2017, legislation was passed introducing new tax on split income (TOSI) rules in effect for 2018.* Understanding TOSI and the new changes is vital to protect those who receive distributions from a private corporation from audit risk. Here are the changes you need to know:

Gratitude is a powerful force. When we take the time to focus on the abundance of good fortune we have, it can have a really positive affect on our personal outlook and the relationships around us. With Thanksgiving just around the corner, please accept our wish for the joy of gratitude as you share time with friends and family, and a sincere thank you for making Knowledge Bureau your educational home. We are grateful and we would like to share a gift with you.

Old Age Security (OAS) and the Guaranteed Income Supplement (GIS) are indexed quarterly through a somewhat complicated formula designed to keep pace with the Consumer Price Index.  But we now know what the total benefit will be for 2019, and what planning needs to take place to maximize it.

With the federal election in full swing, tax changes and promises abound. Last month we asked you what you really thought about one key issue: is this the right time for a meaningful tax reform in Canada? The results are in, and overwhelmingly Canadian advisors are ready for a change as 92.37% said yes. Their comments are worth the read: astute and thoughtful.