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:

Cars are hot commodities these days. While auto sales declined by close to 8% in 2022 over 2021 this year is much brighter for auto dealers, with a 4.4% increase in sales in the first quarter.  The forecast for North American auto product is also good – expected to rise by 9.3% to 15.5 million units in 2023.  Buying and selling cars has tax consequences for taxpayer who take auto write-offs, and the rules are complicated in particular for Capital Cost Allowances (CCA) claims, recapture and terminal loss.  In this report, we’ll zero in on existing car disposals.

Demographics are changing rapidly in Canada. Statistics Canada recently released an interesting study of demographics in Canada and a visual that depicts how the generations stack up, numbers wise, and most important, what their age-related tax and financial issues are.  The professional who gets this right is truly well positioned as an “advisor for the future”.

Benjamin Franklin, who helped draft the American Declaration of Independence on July 4, 1776, also had a knack for memorable sayings.  “There is nothing certain but death and taxes” is likely the best known.  But another notable favorite is “An investment in knowledge pays the best interest.”  It serves as a gentle reminder that you can jump start your “back to school” activities right here at Knowledge Bureau.  Check out our new courses and educational calendar all leading down the pathway to Specialized Credentials and Continuing Education Credits.  You can register now, start today and study from anywhere with convenience online training options, plus earn close to $800 of bonus savings when you register in a designation program:

“Renewal is the principle—and the process—that empowers us to move on an upward spiral of growth and change, of continuous improvement.”  This powerful quote from Dr. Stephen R. Covey speaks volumes: everyone needs to take a break. We are too at Knowledge bureau Report – we’ll be back with breaking tax, investment and practice management news for professionals and their clients on August 2.  In the meantime, if you’re itching for some great educational reading, check out these great learning options from our CE Savvy Micro Course Collections.

Gen Zs are a very special cohort, and tax and financial who are future-focused will want to pay special attention to their tax and financial needs.  Age 18-34, these individuals are facing massive changes in their lifetime, at a time when life should be filled with the joy of embarking on the road to independence.  No surprise: this generation is filled with financial anxiety. Worse still, many of them already have CRA problems. 

The rising wave of insolvencies in Canada, which we discussed in part one of this three-part series, has left many families grappling with financial difficulties​. This increase has been predominantly driven by consumer insolvencies, which have increased by 13.8% from May 2022 to May 20231​. Amid this financial turmoil, it has become increasingly common for parents to dip into their retirement savings to bail out their financially distressed adult children. This article, part 2 of 3, seeks to explore the option of bankruptcy and its implications, and why parents might want to consider guiding their children to speak with a Licensed Insolvency Trustee instead of outright financial rescue.