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:

CRA has been busy announcing new convictions at the start of 2017, a great deterrent for potential tax evaders at the start of tax season.  It’s always best to come forward to declare shortfalls in income reporting or overstatements of tax deductions or credits to avoid expensive interest, penalties and potential jail time. Here’s what happened to those who didn’t. . .

What’s the best way to pay the least amount of tax on your RRSP or RRIF accumulations?  “Average down” the taxes payable on your accumulated capital  by using the progressivity of the tax system (the more you make the more you pay) and the current tax brackets and rates to your advantage.

In Canada’s 150th year, Knowledge Bureau is pleased to put the spotlight on Canadian Financial Authors and celebrate Financial Advice at the Crossroads of Change at DAC Nov 5-8 in Kelowna.  This week:  Rick Atkinson discusses:  Guiding Clients to Better Health & Well Being in Retirement.

We would like to remind you about our skill-testing financial trivia.  This is your chance to win a free registration to the DAC in Kelowna, where this year’s theme will be: CANADA 150: Financial Advice at the Crossroads of Change. You just need to correctly answer both questions.

At a time when governments are more closely monitoring changes in global GDP growth, the effects of protectionism, currency fluctuations, tax changes and sluggish business investment on the long-term financial well-being of Canadians, wealth advisors need to better understand new strategies for making tax efficient investment recommendations to the families they work with.

Canadians who reach age 65 are more likely than ever to live into their 90's thanks to healthier lifestyles and a decline in heart disease.  But this lengthens the retirement income planning period.  Therefore, a renewed focus on continued capital accumulation and preservation is as important as the tax-efficient withdrawal of funds.  Knowledge Bureau’s recently updated Portfolio Risk Management in Retirement course reviews the measurement and calculation of risk and return from this perspective.