A Challenge for New Clients: How to Choose a Trusted Advisor

If you’re in business for yourself, you have a unique opportunity to build wealth in an asset class that others don’t have: equity in a business enterprise that some day may be sold for millions of dollars. In addition, that business can spin off income for family members that can provide significant tax advantages, done well. Understanding how to realize on this asset requires the help of a trusted financial advisory team. Who should be on that team and how do you find them? This is a challenge your next new business clients may wrestle with. Here are some tips on how you can open discussions to help them:

Last week, it was announced that the capital gains inclusion rate increase would be postponed to January 1, 2026. How can you advise your clients on this now?

On January 23 , Finance Canada released draft legislation to confirm the extension of the charitable donation deadline for the 2024 tax year to February 28, 2025. However, this law won’t be passed until the House of Parliament returns from the prorogue.

Breaking News - From Finance Canada today - a postponement of capital gains inclusion rate increase from June 25, 2024 to January 1, 2026—the new date on which the capital gains inclusion rate would increase from one-half to two-thirds on capital gains realized annually above $250,000 by individuals and on all capital gains realized by corporations and most types of trusts.

Last week Finance Canada released draft legislation to confirm the extension of the charitable donation deadline for the 2024 tax year to February 28, 2025. But it’s not for all donations. The fine print in this legislation matters before going ahead and making the donation. Check it out:

Say tuned this Friday, January 31 when CRA is set to release its capital gains calculation forms.  Will they include the proposed new capital gains inclusion rate calculations?  Recall the April 2024 Budget, when our now resigned finance minister Chrystia Freeland announced that the proportion of capital gains that qualify as taxable income would be increased for some tax filers. Is it law?  No.  What should tax filers do?

Many small businesses are currently receiving the long-awaited Canada Carbon Rebate, and for some it’s a sizable sum.  Is it taxable?  It shouldn’t be, according to an announcement made by the Finance Minister last November after the CFIB raised the issue.  In fact, its written statement on the matter on its website also casts this as a tax-free payment.  But did you know, the law says something different?