Investigative Tax Prep:  Top Ten Changes to Probe

Tax season 2025 has started with a focus on the increased income levels some taxpayers may report due to proposed changes in capital gains tax laws.  But aside from this there are new questions to probe with clients to ensure the family’s tax returns are filed to their very best benefit, given change in their life and financial events as well.  Here are top 10 queries to add to your interview checklist:

There are lots of tax details around the carbon taxes paid by Canadians and their carbon tax rebates, which now will have a third name since 2018.  The Canada Carbon Rebate (CCR) will help offset the increased costs of fuel at the pumps but, heating costs have also increased due to the new carbon tax, on which the GST/HST is also charged – a tax on tax.  Residency is also required to access the CCR, which means new forms for newcomers.  Check it out:  

A trust, unlike a person or a corporation, is not a legal entity... A trust is simply a legal  relationship between the trustee, who holds legal title to the subject property of the trust and the beneficiaries, who hold beneficial title to that subject property. However, there is one exception to the general rule: a trust is a legal entity for tax purposes.  Subsection 104(2) of the Income Tax Act (Canada) specifically provides that a trust is an individual for tax purposes and, thus, is considered a separate taxpayer.

Knowledge Bureau has a new CE Solution for financial advisors and you can even take one of them for free.  But that’s not the main reason you’ll want to check out our CE Savvy™ Micro-Course Collections! The education is fantastic and the new learning platform is amazing.  Firms are signing up, and independent advisors, too.  Here’s why Tony Mahabir, MBA, CMC, RWM, CIM, RRC, CFP, FP Canada Fellow and President of the CANFIN Group of Companies and is so enthused:  

Here they are:  the big conversation starters for your clients this month – something new for every demographic!  Take the time to be proactive, especially because this year is a Leap Year and most important, because CRA starts processing the 2023 T1 returns this month!  Tax season 2024, in other words, is officially underway!

February is the month to focus on retirement savings for a future of financial security.  For business owners that is particularly important as they often have all their retirement eggs in one basket:  the business.  It’s not easy to sell a business and when the time comes, it’s important to know about the latest tax-advantaged succession option, which comes with a $10 million Capital Gains Exemption.

Processing a tax return will begin on February 19 and that’s also the date any paper tax return packages will be mailed.  If you want to receive your return, refunds and Notice of Assessment faster, electronic filing is the way to go – and about 93% of Canadians chose that option last year.  Aside from accessing the tax forms and line-by-line instructions immediately, CRA promises that processing an electronically filed return will take about two weeks, as opposed to 8 weeks for paper returns, according to CRA’s service standard.  But in more than a dozen instances, paper filing is actually required.  Check it out here: