The Alternative Minimum Tax (AMT) is a parallel tax calculation that allows fewer deductions, exemptions, and tax credits than under the ordinary income tax rules, and that currently applies a flat 15-per-cent tax rate with a standard $40,000 exemption amount instead of the usual progressive rate structure. The taxpayer pays the AMT or regular tax, …
ALTERNATIVE MINIMUM TAX FOR HIGH-INCOME INDIVIDUALS (PART 1) Read More »
Registered Education Savings Plans (RESPs) are tax-assisted savings vehicles designed to help families accumulate savings for the post-secondary education of their children. Contributions to RESPs may be eligible for government matching grants, such as the Canada Education Savings Grant. Low- and middle-income families may also qualify for Additional Canada Education Savings Grants or the Canada …
Under the deduction for tradespeople’s tool expenses, a tradesperson can claim a deduction of up to $500 of the amount by which the total cost of eligible new tools acquired in a taxation year as a condition of employment exceeds the amount of the Canada Employment Credit ($1,368 in 2023). The total cost of eligible …
You may have to pay tax by instalments if your income does not have enough tax withheld or if you are self-employed, have rental or investment income, certain pension payments, or have income from more than one job. Factors to consider There are two factors to help determine if you have to pay tax instalments: …
Required tax instalments for individuals. Who has to pay (part 1) Read More »
(please read the beginning of the article in our previous posts) Author of the article: Renée Sylvestre-Williams • Canadian Family Offices Insurance This is probably one of the last remaining ways to pass money intergenerationally without paying tax on it, says Scott Dickenson, principal of client service at Northwood Family Office in Toronto. He says that generally, the …
Five smart ways to transfer wealth to your children and grandchildren (part 3) Read More »
(please read the beginning of the article in our previous posts) Don’t let tax efficiencies dictate the best ways to pass on wealth. The idea that wealthy parents or grandparents leave money to their kids or grandkids in their will is becoming outdated. Here are some more ideas: Trusts Another common form of transferal is …
Five smart ways to transfer wealth to your children and grandchildren (part 2) Read More »
Don’t let tax efficiencies dictate the best ways to pass on wealth. The idea that wealthy parents or grandparents leave money to their kids or grandkids in their will is becoming outdated. So says Ethan Astaneh, wealth advisor and client relationship manager at Nicola Wealth in Vancouver. While money can definitely be passed down via …
Five smart ways to transfer wealth to your children and grandchildren (part 1) Read More »
Instalment interest and possible penalty charges will be applied if you do not pay your required tax instalments or paid insufficient amounts. Instalment interest You will be charged instalment interest if all the following apply: You are required to pay by instalments in 2022 You receive an instalment reminder in 2022 that shows an amount …
Required tax instalments for individuals. Interest and penalty charges Read More »
The Department of Finance Canada announced the automobile income tax deduction limits and expense benefit rates that will apply in 2023. The following changes to limits and rates will take effect as of January 1, 2023: The ceiling for capital cost allowances (CCA) for Class 10.1 passenger vehicles will be increased from $34,000 to $36,000, …
(Please see the beginning of the article in our previous posts). Elections Canada boxes When filing your taxes, checking “Yes” to the two questions related to Elections Canada ensures that you’re on the list of electors at your current address and ready to vote in any federal election. To register and vote in a federal …
WHAT YOU NEED TO KNOW FOR THE 2023 TAX-FILING SEASON (PART 3) Read More »