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:

The Underused Housing Tax (UHT), was introduced as a tax on vacant homes owned by non-residents in the April 19, 2021 federal budget. According a recent interview with Investment Executive, the tax has already raised 30 million dollars as of mid December 2023, but on closer look, less than 2% of the 426,200 returns assessment had taxes owing, and the amount collected has fallen short of goals.  Is it worth the complexity and the cost of compliance to keep it in place? That’s our January poll question. Here’s some background:

Coming up virtually on January 17, in person in Toronto on January 24 and in Calgary on January 26, registration for Knowledge Bureau’s 2024 Comprehensive T1 Tax Update for professionals is now open.  Check out the detailed agenda online! The program includes not only the presentations for the day but access to the accompanying online course, CE quizzes, accreditation and the new 430-page Knowledge Journal Line-by-Line Desktop Reference, as well as lunch and refreshments at the in-person events.  In addition, every student retains a subscription to EverGreen Explanatory Notes and Knowledge Bureau Report for the tax season and until May 6.   It’s your complete 2024 Tax Season Toolkit!

Did you know that Knowledge Bureau is a private, educational institution certified by Employment and Social Development Canada (ESDC) to provide courses that develop or improve skills for those working in the tax, bookkeeping, accounting, and financial services industries? What this also means is that Knowledge Bureau students who have paid 2023 tuition fees in excess of $100 qualify for the tuition fee amount, and the T2202 tax slips to claim this are now available in your Virtual Campus. Here’s how to claim them:

We wish to express our sincere gratitude to you for the privilege of being a part of your professional life over the past year. 

Canadians and their economy appear to be on the road to financial health.  Canada’s Consumer Price Index (CPI) rose 3.1% on a year-over-year basis in November, and while there was no decline from the month before, if the trend continues and the inflation rate falls to within the Bank of Canada’s target rate of 2%, Canadians could look to 2024 as the year the Bank starts cutting interest rates.  Better still, because household disposable income has risen at the fastest pace in five quarters, Canadian savings rates have risen, too.  There is a fly in the ointment, but even that can’t dampen spirits.

To pull ahead of high inflation, interest rates and new taxes looming for the first half of 2024,  taxpayers and their advisors can best cope by quickly sharpening their skills on uncovering tax-driven savings to manage financial challenges in the short term, says Knowledge Bureau Founder and President Evelyn Jacks, best-selling tax financial author and award-winning educator.  There are also some things that can still be done before year end, especially for delinquent tax filers, but the time is quickly drawing to a close, so if you have missed filing a return now is the time to catch up and recover refunds and benefits.