Claiming Medical Expenses: Free Healthcare?

Free Health Care? Did you know that Canadians spend on average more than $1,000 on medical expenses each year? It’s estimated that government programs, via our taxes, cover about 72% of medical expenses, which means that we pay for the rest. Your clients may be over-paying on their taxes because they don’t know about medical expense deductions. 

Well, if we could all arrange to pass away before June 25th that would be very tax efficient!  But that’s neither advisable nor desirable so we have to think about the post-budget estate planning realities.  Does it make sense to set up testamentary trust anymore?  Death is a large deemed disposition.  Should we consider realizing some gains along the way?  What has happened to the ability to make charitable donations on death? And what to do about the cottage? Find out more when you join us at the May 22 CE Summit.

Check out the recording of the live round table session featuring practicing members of the Society of Real Wealth Managers™ and learn more about how a Real Wealth Management approach can help your clients achieve financial peace of mind through the collaborative multi-stakeholder strategies aimed at building sustainable inter-generational wealth after taxes, fees and inflation. With recent budget announcements, inflation and more weighing heavily on Canadian taxpayers, having the ability to deliver confident advice has never been more important! Register now for the Orientation and consider enrolling in the Designation Program at a special tuition rate, only until May 31.

A new credential is available through Knowledge Bureau and it’s important because it will engage Millennials, GenX and Boomer co-horts in planning around their financial nemesis:  taxes.   The thoughtful  role of the DMA™ Retirement Income Services Specialist is critical in achieving required after-tax outcomes that can skillful lead to greater financial peace of mind of retirees, and those saving for retirement.  Plus, a comprehensive online program orientation is available to check out the curriculum risk-free!

And you thought tax season was over!  Three significant tax milestones loom in June and they require immediate attention now that the April 16 budget has increased the capital gains inclusion rate from 50% to 66 2/3% - a move potentially affecting up to 3 million taxpayers over the course of this decade.  It’s historic, because, not since 1988 – 36 years ago- has the capital gains inclusion rate changed.  This is a time for tax and financial advisors to shine, despite the fact that they are forced to advise with a blindfold:  the April 30 Notice of Ways and Means motion did not introduce the legislation for the massive changes to come.  Here’s what you need to consider: 

It’s springtime and for some that may mean a new car!   One of the most common deductions for self-employed individuals, certain employees who negotiate contracts on behalf of their employers, and employed commission salespeople, is the deduction for Auto Expenses.   They are also amongst the most frequently audited. There have been some changes to the rules for claiming these expenses in 2024.  Some details follow.

Canada’s tax system has been undergoing significant reforms.  The complexity and uncertainty caused by hurried tax law and a lack of readiness at CRA, have resulted in two last minute cancellations, most recently to  filing T3 returns for bare trusts - so far, only for the 2023 tax year.  Problem is, CRA, can still make a direct request for these filings.  KBR subscribers had mixed reviews about this, discussed below.  By April 16, taxpayers faced further complexity on their sound financial plans:  the proposed capital gains inclusion rate increase. Are these taxes on capital gains the wrong move at this time?  Consider the research and join us May 22 for a vibrant national discussion on what to do about it.