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. 

The CSB is officially obsolete, killed by the March 22, 2017 federal budget. What effect does this have on investors? Some new planning strategies are in order for planners and clients alike.  But first a little history...

The Disability Tax Amount, a non-refundable tax credit valued at $8,001 in tax year 2016, can be claimed by someone who is markedly restricted in the activities of daily living on a permanent basis, or by their supporting individual.

Last week’s federal budget proposed to improve access to education funding with a series of new initiatives including improved access to bonds, loans and grants. Planning for student debt repayment, however, should be a critical first step with students, alongside the application process. Tax and financial planners can be of important assistance.

The prescribed interest rates for April 1 to June 30, 2017, remain unchanged on overdue taxes and tax overpayments, and for calculations of taxable benefits and shareholder loans. However, the interest rates on PLOI—Pertinent Loans or Indebtedness—have been changed this quarter.

In the recent federal budget, the federal government continued its commitment to supporting and funding innovation to grow Canada’s economy and build a strong middle class. There is evidence all around us that technology is fueling new enterprises all over the globe, in what has become known as “the sharing economy.”

With recent changes to the taxation of trusts, more beneficiaries may find themselves reporting trust income personally, when they are in a lower tax bracket than the trust itself. Executors, too, need to be informed about the best planning strategies. For these reasons, tax advisors must prepare themselves to answer questions about trust filing and planning.