Canada Needs a Financial Plan

According to a July 23 publication by the Fraser Institute, we are getting poorer here in Canada and the prospects for economic growth are looking grim.  This should be of concern to every Canadian concerned about their “real income” – that’s their purchasing power – and by extension - their ability to fund consumption now and for important family milestones in the future:  retirements, education and homeownership.  It’s grim, but there are practical suggestions for a turn around plan. Here’s a synopsis of the report.   

In communities where rental accommodation is scarce, more and more homeowners are building a second dwelling on their lot and renting out that “coach house” or “carriage house”.  Many have not thought about the tax consequences, though, and they could be complicated.  The key question:  will your tax exempt principal residence status be affected by this second dwelling?

It’s time to take note of the tax filing requirements and investment opportunities that arise in the first quarter of 2017:  January, February and March.  Investors making TFSA and RRSP contributions, as well as interest payments on inter-spousal loans are affected.  So are taxpayers who are making quarterly instalment tax remittances.

Submit your answer to the monthly DAC Canada150 financial trivia question to win a free registration to the Distinguished Advisor Conference in spectacular Kelowna, B.C., November 5 to 8.  At the end of each month one lucky person’s name will be entered to win the grand prize.

Hundreds of professional tax advisors are lining up to think with us at the annual Line-by-Line Tax Bootcamp and there is still time for you to come up to speed for tax season, network with great tax experts and  join the fun in Edmonton – January 19, Toronto – January 23, Ottawa – January 24 and Winnipeg – January 25.

After successfully completing your T1 Tax Preparation – Basic course, the next step is to move onto the advanced course T1 Professional Tax Preparation – Advanced.

“I have a broad range of experience in and knowledge of the Canadian and, to a lesser degree, American tax system. I enjoy keeping up to date and current on the subtle year to year changes in the tax laws and how these changes affect my clients. I also have a personal and special interest in various aspects of real estate, be it ownership or rental. I look forward to helping my clients maximize their returns and provide advice on the best course of action for their particular needs.” Munly Dobson, DFA - Tax Services Specialist™, British Columbia