SMES: Carbon Tax Rebates on the Way?

July 15 was an important day for carbon-tax weary taxpayers. A Canada Carbon Rebate payment was  made to individuals who have filed their 2023 personal tax returns.  What about the long-awaited $2.5 billion Carbon Tax Rebate For Small Businesses? The delivery date and amounts to be received remain elusive, but one thing is clear: many businesses will have disqualified themselves by missing the July 15 date for filing 2023 T2 returns.  Here’s what you need to know. 

One of the topics of conversation in the May 22 CE Savvy Summit for tax and financial advisors will be the new complexity the capital gains inclusion rate increases will bring to the Income Tax Act.  Although the draft legislation to bring the current 50% rate up to 66 2/3% is still missing in action despite a looming June 25 date on the horizon, the changes will require a look back to the 1980’s to calculate gains properly and looking forward, potentially 6 different capital gains exemptions.

Cottage ownership is a long-held Canadian dream.  Due to shifting demographics over the next decade, many cottages are set to become family battlegrounds—as ownership of vacation properties along with other family assets will be transferred from aging parents to their children.  Beyond the significant financial implications that will be triggered by this asset transfer, often the emotional aspects can be even more difficult to contend with.  Cottage succession planning is an important exercise that clients should undertake well in advance of their deaths to avoid family issues and tax implications. 

By May 6, the CRA received 28.5 million returns with over 94% of them submitted by electronic methods. For those Canadians receiving a refund, the average amount is $2,165, another annual increase over last year which came in at $2,053 for 2022. Train now and help tax filers pay the correct amount of tax and no more both for their 2023 tax returns, which can be adjusted for errors and omissions, and in planning for their 2024 tax liabilities. Mark your calendar for these upcoming tax, investment and financial milestones, which include new dates from the Federal Budget, like the June 25 Capital Gains inclusion rate increase. Get all the details below!

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!