Time is Running Out for First-Time Home Buyers to Save in 2024

Owning a home, once almost considered a right of Canadian citizenship, has become a more distant dream for millions. The high cost of housing, coupled with a desperate shortage of supply, has turned the notion of home ownership into a near impossibility for many Canadians and those who have arrived in our country more recently.  The Tax-Free First Home Savings Account (FHSA) can help but it’s important to open an account before December 31, 2024 to create and preserve the contribution room.

The legislation to implement the Canadian Entrepreneur Incentive (CEI) was released on August 12 and while the provision has been improved from its debut in the April 16 federal budget, its effectiveness in offsetting the negative effects of the capital gains inclusion rate increases when an entrepreneur sells the shares of the company, may still be muted.   The reality of the journey to a successful disposition is fraught with risk, as businesses are opening and closing at unprecedented rates. Another major flaw according to the CFIB, is the long list of entrepreneurs in important industries, who are still excluded.    

The technical details for the significant tax changes arising out of the April 16 Federal Budget regarding changes to the Capital Gains Inclusion Rate (CGIR) that took effect on June 25, 2024 were  finally released on August 12, absent explanatory notes or even a table of contents, although a Backgrounder issued on June 10.  The announcement provides for a brief consultation period with a deadline of September 3.  Join us for a technical course on the matter from an audit defence perspective in our virtual CE Savvy Summit on September 18. In the meantime, a perusal of the legislation has identified significant updates throughout the Income Tax Act.

The government has invested in the Canada Revenue Agency because it brings great returns.  Consider the results in the latest CRA Departmental Report, described below.  Then, consider the additional powers and money behind them granted to the department in the latest federal budget and in particular the concerning new provisions that introduce a Notice of Non-Compliance into the mix.

Knowledge Bureau is pleased to introduce a new Diploma in Advanced Family Tax Compliance.  This comprehensive program is ideal for experienced tax accountants and wealth advisors who require updating in the latest  tax and economic changes from Finance Canada and CRA in order to help clients meet tax filing compliance requirements and family wealth planning objectives.  The program comprises of four online courses, 5 chapters each, and 4 virtual CE Summit events.

Studies have shown that advisors typically spend upwards of 30% of their time in any given week dealing with client investments (re-balancing, trades, compliance, admin). What would it mean for you if you suddenly recaptured a third of your week? Image the savings in time and money if you could reduce overhead or re-assign staff to more productive work! In this impactful session with Michael van Lierop and sponsored by New Outlook Wealth,  learn how to earn the Freedom Dividend only at the 2024 Acuity Conference for Distinguished Advisors November 10-12 in Montreal.

to rethink their approach for managing operations to avoid the unprecedented business closing statistics (refer to prior article this issue).  However,  paying increased attention to financial performance, profitability, and cash flow to meet obligations on both a personal and business level can matter greatly when embracing challenges in the areas of high interest rates, inflation, supply chain management, changes in consumer expectations, and a tight labour market.  Knowledge Bureau’s  newly updated Budgeting & Forecasting for Small Business course helps provide the strategic and technical insight needed and you can enrol now!