With the federal budget now set for March 22, 2017, investors with significant accrued capital gains in their securities portfolios are wondering whether a hike to the capital gains inclusion rate could be in the cards on budget day and, if so, is there anything they can do it about now. Of course, investors need only be concerned with capital gains taxes if they hold appreciated investments in non-registered accounts….
Tax planning may be the last thing on Canadians’ minds as they get ready for the hustle and bustle of the holiday season. But now is the time to take advantage of credits and benefits available to you until Dec. 31, says Jamie Golombek, managing director of tax and estate planning at CIBC Private Wealth Management. Otherwise, you may be leaving money on the table that you won’t be able…
One of the least-used tax credits is also one of the murkiest. But by not claiming certain health-care costs via the Medical Expense Tax Credit, Canadians could be losing big dollars. “The opportunity to save money is not used…because you’ve got to keep some records and have some efficient way to calculate the deduction,” says John Crawford, chartered accountant and chief financial officer of health insurer Pacific Blue Cross. “There’s…
It is not uncommon for individuals who have saved for some time to have multiple investment accounts. Often, they will have one in their own name, one in a holding company’s name, and at least one more registered account such as an RRSP, RESP or TFSA. The rules differ depending on age and other factors, but the key shared element among registered accounts (so long as money is not withdrawn…
Record high markets have our customers asking us questions every day such as: When will there be a correction in the market? What can I do to protect myself from it? First of all, this sort of thinking can be detrimental to your portfolio. Corrections are part of the market, just as rallies are. Trying to predict a correction is more or less impossible, but it also automatically puts you…
Everyone knows it’s RRSP season, but what’s less obvious is how to best direct your contributions over the years. Different ages and life stages call for different strategies. There’s an overarching theme, though: anything you can put toward your retirement is a good thing. “When it comes to contributions, it’s a journey, not a sprint,” says ?Wade Stayzer, vice president of retail banking and investment services at Ontario’s Meridian Credit…
Tax-free savings accounts (TFSA) may be increasingly popular, but they also have a lot of Canadians scratching their heads. Forty-eight per cent of Canadians have a TFSA, up from 23 per cent in 2012, according to Bank of Montreal’s recently released Tax Free Savings Account (TFSA) report. However, there’s confusion surrounding the details: the poll found that just 19 per cent of Canadians know the annual contribution limit, 10 per…
It’s better late than never when it comes to your taxes. If you haven’t done your taxes for a year or two — or more — “get on it before CRA gets on you,” says tax expert Evelyn Jacks. The author of books such as Jacks on Tax and Essential Tax Facts says you may face big penalties and interest charges for procrastinating. “If you voluntarily comply — that is,…
Contribution rules for a popular tax shelter continue to perplex ordinary Canadians, despite a year-long information blitz by the Canada Revenue Agency and the big banks. The agency sent out almost 103,000 letters to holders of tax-free savings accounts this month warning they likely over-contributed in 2010 — and now must pay additional tax. That number is up sharply from the 72,000 letters issued on June 1 last year for…
Canadian opposition parties brought down the Conservative government in a no confidence vote Friday, triggering an election that polls show the Conservatives will win. The opposition parties held Prime Minister Stephen Harper’s government in contempt of Parliament in a 156-145 vote for failing to disclose the full financial details of his tougher crime legislation, corporate tax cuts and plans to purchase stealth fighter jets. Opinion polls expect Harper’s Conservative Party…