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:

Join us in Beautiful Banff November 11-14 at the spectacular Banff Springs Hotel for the Distinguished Advisor Conference (DAC).  You won’t want to miss the outstanding special guest speakers, the Snow Ball Gala celebrating our 20th Anniversary, and the opportunity to give the gift this extraordinary Educational Extravaganza to your most dedicated team members!

You can’t afford to miss this if you are a professional tax accountant, bookkeeper or financial advisor!  Your clients are counting on you for accurate tax filings, sound tax planning advice and the recommendations to the correct investments as inflation and high interest rates interrupt financial peace of mind.   Check it out and register now.

Is the Grinch in the house?  The interest rate hikes just haven’t stopped in 2022.  On December 7, the Bank of Canada (BOC) increased policy interest rate again by 50 basis points, leaving many Canadians worried about the effect on their finances in 2023. Currently, the overnight rate is 4¼%, with the Bank Rate at 4½% and the deposit rate at 4¼%.  But this translates to much higher costs on various debt transactions: operating lines, lines of credit and mortgages.  Is there a silver lining?

Why don’t more taxpayers – and charities – know more about gifting securities in kind?  It’s an expeditious way to support your favorite charities during inflationary times.  Donations for the purposes of 2022 tax credits will be accepted until December 30, but it’s important to leave settlement time for the transfer or securities.

The April 2022 federal budget, introduced a Labour Mobility Deduction for skilled tradespeople and apprentices who need to temporarily relocate for work and it’s important to advise eligible taxpayers about this before year end so they can find receipts to back up the claims retroactively to January 1, 2022. 

Canadians, who leaving the country become emigrants, and have to file a final tax return as of the date of emigration must report income for the period of residency and also, a deemed disposition of their taxable assets. This can generate capital gains or losses, which can generate a balance due or in some cases, additional refunds if losses are applied to prior year gains.  There are some exceptions explained below.