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 »
In 2019, the government commenced a two-part enhancement to the Canada Pension Plan (CPP), with full implementation to be completed in 2025. Phase 1 occurred from 2019-2023; phase 2 will occur from 2024-2025. Overall, the changes will require larger contributions but also will provide larger benefits. Pre-CPP enhancement CPP contributions for employees and employers under …
CPP Enhancements: Higher Contributions and Higher Benefits (part 1) Read More »
Please, see the first part of the article here and the second part of the article here Home buyers’ plan (HBP) In a May 15, 2023 French Technical Interpretation, CRA was asked whether an individual could withdraw $8,000 under the HBP and contribute the funds to a tax-free FHSA, knowing they would purchase a qualifying …
First Home Savings Account (FHSA): A New Investment Tool (part 3) Read More »
Please read the beginning of the article here The maximum participation period for an FHSA ends at the earliest of: 15 years after opening an FHSA; the end of the year following the year of the individual’s 70th birthday; and the end of the year following the year when the individual first makes a qualifying …
First Home Savings Account (FHSA): A New Investment Tool (part 2) Read More »
The tax-free FHSA was introduced in 2023 to help first-time home buyers save up to $40,000 for a home purchase. Individuals eligible to open an FHSA must be at least 18 years of age and resident in Canada. The individual must also have notlived in a home that they or their spouse owned jointly or …
First Home Savings Account (FHSA): A New Investment Tool (part 1) Read More »
Please see the first part of the article here The reference number will remain on My Account until the medical certification (Part B) is completed. Representatives cannot currently complete the non-medical portion (Part A) through their Represent a Client account. To use this new option, the patient (person applying for the DTC) must register for …
Disability Tax Credit (DTC): Electronic Applications (part 2) Read More »