Start Tax Season 2025 on Sound Footing
Filing a tax return is difficult as the playing field is one of constant change: the tax rules are in flux, particularly in the 2024 tax filing year, with all the uncertainty around the capital gains provisions. But in addition, taxpayers have undergone many financial and life event changes since their last T1 filings, each of which must be identified for each family member. Here’s a primer for new year conversations between advisors and clients that cuts through the noise: what matters is what you keep!Funding Education Through the Tax System
Special Back to School Tax Tips Issue: It’s Back to School and that means it’s time to think about how the tax system works to help support parents, students and employers. In this Special Knowledge Bureau Report, refresh your memory on the tax deductible do’s and don’ts when it comes to funding education through the tax system. There are two common ways to do so from investment accounts that may have been set up for these purposes. First there are the Education Assistance Payments available from the Registered Education Savings Plan (RESP). You may also consider the Lifelong Learning Plan under the RRSP withdrawal rules. Here’s what to know:
Claiming The Tuition Fee Amount & Canada Training Credit
Most people know that the tax system allows for a non-refundable tax credit on the T1 known as the Tuition Fee Amount. But, you need to have taxes payable for it to work to your advantage. If you don’t the claim may be transferred from the student to the supporting individual – a parent, a spouse or a grandparent. But there is a maximum limited: only $5000 can be transferred and unfortunately this amount is not indexed to inflation. It’s a tax reform change that is long overdue as the cost of education has increased over the years.
Canada Emergency Student Benefit (CESB)
This fall, more students may be stressed by debt and one of the reasons why is the repayment of the CESB. In 2020, students could qualify for the Canada Emergency Student Benefit of $1,250 for a 4 week period for a maximum of 16 weeks. An extra $750 for a total of $2000 per month was available if the applicant had a disability or dependants. But now there is a cash flow problem for some students:
New 30 Year-Mortgage Amortizations: Planning Required, Financial Pros Say
Effective August 1, new 30-year mortgage amortizations are available for first-time home buyers purchasing newly built homes. For our August poll we asked tax and financial professionals if this is an option they’d recommend to their clients, and there was an interesting mix of votes, 66% said “no”, but 34% said they would – their comments provide great insight for homeowners who may be eligible for this program.
CE Savvy Summit: Advising Clients with Audit Defence in Mind
The system is just wrong! Think of the problems your clients are having with CRA and their TFSA audits. The TFSA contribution room on the MyAccount portal does not coincide with actual contributions, yet CRA is giving. Another issue is the lack of use, improper use and/or set up of health spending accounts which are so important to small business owners. How do you make sure that these plans are audit proof? Lastly, there are inheritance/crypto scams out there. . .are you talking to your clients about this? Find out more in this informative Society of Real Wealth Managers Round Table hosted by Doug Buss, CLU, CPCA, CFP, CEA, RWM™, FDFS™ at the September 18 Virtual CE Summit.
The Joy Factor - Unlock the Secrets to Thriving | Andreaa Vanacker
Dr. Andreaa Vanacker will share her remarkable story and experiences to help you consider the role of joy and purpose in financial decision-making. You’ll be exposed to a new perspective in encouraging those you influence, to assess their legacy and optimize their most important asset: time. Learn more, only at the Acuity Conference for Distinguished Advisors November 10-12 in Montreal. Register by the September 15 early-bird deadline!
