New Mega Deduction a Good Start, But More Tax Reforms Are Needed

The Federal government has unveiled a Productivity Mega Deduction, which will provide immediate expensing under Capital Cost Allowance (CCA) provisions for a broad range of depreciable property, importantly on a permanent basis, for acquisitions on or after September 15, 2026. Check out the noteworthy exclusions are listed below. This tax reform is a good start, but much more needs to be done, especially for small business owners and average taxpayers to make Canada truly competitive across our tax base.

The demand for filing unincorporated small business returns may be a new growth area in the tax preparation industry as both an aging demographic and self-employed millennials choose to  make a living this way.

Siegfried Merten, MFA™, Ontario, is Knowledge Bureau’s noted expert on filing returns for recipients of German pensions. He says this about his experience in obtaining his MFA™ designation:

“No one’s happiness but my own is in my power to achieve or to destroy.” Ayn Rand

This year, new immigrants include more refugees who need to come up to speed on how to benefit from the many refundable and non-refundable tax credits and deductions available in Canada.   You may wish to take a new family under your wing and help them navigate this task.

On Tuesday, the Loonie was worth $0.7657 US.  This is the highest value we’ve seen since September 23, 2016.  Sadly the dollar is still more than 30 down from January of 2013 when it was last on par with the US Dollar.  So what are the tax implications for investors of exchange rate fluctuations?

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?