Extension of Donation Deadline – Gifts in Kind Don’t Qualify

Last week Finance Canada released draft legislation to confirm the extension of the charitable donation deadline for the 2024 tax year to February 28, 2025. But it’s not for all donations. The fine print in this legislation matters before going ahead and making the donation. Check it out:

We were spot on! The simplified per kilometer rates for medical and moving expenses for each province were announced by the CRA mid-February, and they jive with what we taught attendees a month earlier during the Advanced Tax Updated at the January CE Summits.  Here they are and details on when you would use them. Although, you do not need to keep detailed receipts for actual expenses if you choose to use the simplified method, the CRA may still ask for documentation to support your claim. Keep track of the number of kilometres driven during the tax year for your trips relating to medical travel (that is, when you must leave your home to receive medical treatments at least 80 kilometres away). You can also use this method in claiming travel expenses relating to your moving expense claim and for the purposes of the northern residents’ deductions.

Are you interested in enhancing your value proposition and broadening your client service offering? Amplifying your referrals?  Becoming a more holistic wealth advisor? Then you may be interested in learning more about the Real Wealth Managers RWM™ Designation – a new designation that differentiates collaborative financial leaders in the marketplace. RSVP now for a complementary virtual Lunch & Learn on March 2 at 12 PM CST!

Do you have complex tax questions difficult to find on the CRA website?  Are you too busy for long wait times on the phone with the CRA?  At Knowledge Bureau we have a great solution to help you save time and money and answer more tax questions from your clients with confidence.  It’s called Evergreen Explanatory Notes,  your fast guide to issues, answers, explanations, client interview guides case studies, tax court cases, plus a fast way to link directly to all pertinent CRA forms, guides, folios, the Income Tax Act and much more!

What is the current word on using the Lifetime Capital Gains Exemption when you transfer the family farming, fishing or small business corporation to your child or grandchild?  Is this possible or not?  There is good reason to feel unsure, as the tax law around this lifecycle event has not yet been clarified, 9 months after Royal Assent was give to legislation intended to change it.  Here’s the background to this story:

Investing in asset upgrades this year?  What can be written off over time?  The answer is increasingly cloudy. Recent tinkering with the tax system to promote certain economic activities has allowed for accelerated write-offs, but that has caused significant complexity.  With the introduction of an accelerated write-off of capital items purchased by a Canadian Controlled Private Corporation (CCPC) to a maximum of $1,500,000, the net tax consequences over the lifetime of the asset’s use require more thought. 

It is no secret that the dream of home ownership is getting out-of-reach for thousands of Canadians, not only in the major Metropolitan areas of the country, but also in the suburbs. Accessing the Home Buyer’s Plan within the RRSP is an important strategy that can help first time home buyers realize their dreams of home ownership.  It’s another reason not to miss the RRSP contribution deadline, coming up shortly on March 1.