Please see the parts 1-3 of the article in our previous posts. 9) NEW! As of April 2023, individuals can contribute to the new tax-free first home savings account (FHSA). Eligible contributions are deductible, and withdrawals to purchase a first home are not taxable. Up to $8,000 can be contributed annually, to a maximum lifetime …
Please see the parts 1-2 of the article in our previous posts. 6) If you have equity investments or loans to a Canadian small business that has become insolvent or bankrupt, an allowable business investment loss (ABIL) may be available. For loans to corporations to be eligible, the borrower must act at arm’s length. ABILs …
Please see the first part of the article in our previous post. 3) If you own a business or rental property, consider making a capital asset purchase by the end of the year. Many capital assets purchased and made available for use in 2023 will be eligible for a 100% CCA write-off under the immediate …
See below for a list of tax planning considerations. Please contact us for further details or to discuss whether these may apply to your tax situation. SOME 2023 YEAR-END TAX PLANNING TIPS INCLUDE: Certain expenditures made by individuals by December 31, 2023 will be eligible for 2023 tax deductions or credits, including digital news subscriptions, …
Please find parts 1-4 of the article in our previous posts. 8) If you provide services to a small number of clients through a corporation (that would otherwise be considered your employer), CRA could classify the business as a personal services business. There are significant negative tax implications of such a classification. Consider discussing risk …
Please find parts 1-3 of the article in our previous posts. 4) Individuals who wish to contribute to the CPP or an RRSP may require a salary to generate earned income. RRSP contribution room increases by 18% of the previous year’s earned income up to a yearly prescribed maximum ($30,780 for 2023; $31,560 for 2024). …
Please find the first and the second part of the article in our previous posts. Year-end planning considerations not specifically related to changes in income levels and marginal tax rates include: 1) NEW! The alternative minimum tax (AMT) regime is proposed to change for 2024. Individuals may find themselves subject to a larger AMT liability …
Please find the first part of the article in our previous post. There are various ways to smooth income over several years to ensure an individual is maximizing access to the lowest marginal tax rates. Taking more or less earnings out of the corporation (in respect of owner-managed companies). Realizing capital gains/losses by selling investments. …
Higher personal income levels are taxed at higher personal rates, while lower levels are taxed at lower rates. Therefore, individuals may want to, where possible, adjust income out of high-income years and into low-income years. This is particularly useful if the taxpayer is expecting a large fluctuation in income due to, for example, an impending: …
Phase 2 Referred to as second enhanced CPP contributions, the contribution rate for employees and employers will be 4% but will only be applied to earnings above YMPE up to the yearly additional maximum pensionable earnings (YAMPE) ceiling. For 2024, YAMPE will be set at a number 7% higher than YMPE, estimated at $72,400. For …
CPP Enhancements: Higher Contributions and Higher Benefits (part 2) Read More »