A Challenge for New Clients: How to Choose a Trusted Advisor

If you’re in business for yourself, you have a unique opportunity to build wealth in an asset class that others don’t have: equity in a business enterprise that some day may be sold for millions of dollars. In addition, that business can spin off income for family members that can provide significant tax advantages, done well. Understanding how to realize on this asset requires the help of a trusted financial advisory team. Who should be on that team and how do you find them? This is a challenge your next new business clients may wrestle with. Here are some tips on how you can open discussions to help them:

Looking for extra money to fund rising costs?  The tax return is one such source, especially because it is possible to reach back and correct errors and omissions from the prior 10 years to generate a tax refund.  However, there are certain limitations when it comes to the deduction for CCA (capital cost allowances) and other permissive deductions. Notably, CRA has not changed its rules on this matter since 1984.   In this feature, Part 1, we’ll discuss how to adjust a return. Part 2 will discuss the specific rules concerning CCA.

The post-tax season often involves a specific type of “catch-up” for busy tax accounting offices:  filing returns for procrastinators and making adjustments for errors and omissions.  But this must be done carefully; especially because these adjustments can lead to a broader audit.  Further, there are special rules for claiming “permissive deductions” including CCA (Capital Cost Allowance).  That’s very important if the goal is to preserve tax reducers in the future or recover taxes paid in the past. 

There are six key reasons, you will want to mark your calendar to attend the next Meeting of the Minds Event, presented by the Society of Real Wealth Managers™ on August 17, 11:00 – 12:00 PM CST. It’s a complimentary event, and it could be one of the most informative hours of your summer. 

Submit the name of your worthy nomination for the DAC New Advisor Award now.  The application deadline September 1, 2022.  The prestigious award recognizes the next generation and their contributions to excellence in the tax, accounting and/or financial services.   Here’s what the winner of this prestigious award will receive and how to apply:

Have you discussed the nine key issues that require renewed consideration in retirement planning with boomers?  To begin, testing a financial plan against longevity is very important. For instance, did you know that a 65 year old male and female have a 50% probability of reaching age 89 (male), 91 (female) and 94 (either the male or the female)? There is also a 10% probability that either the male or the female lives to age 101. A female couple could have a greater likelihood of living even longer. 

If you sell a capital property and the net proceeds from the sale are less than your adjusted cost base, you have a capital loss – but only if you don’t purchase (or acquire the right to purchase) an identical property within 30 days before or after the sale of the capital property.