CLU Comment: Business Overhead Insurance, RRSP Over Contributions, Rights or Things, Employee Death Benefit

Business Overhead Insurance, RRSP Over Contributions, Rights or Things, Employee Death Benefit

To view the original article, please click on this link.

CLU Comment: Business Overhead Insurance, RRSP Over Contributions, Rights or Things, Employee Death Benefit

Business Overhead Insurance, RRSP Over Contributions, Rights or Things, Employee Death Benefit

To view the original article, please click on this link.

Why does a Financial Advisor need to be on LinkedIn?

LinkedIn is no longer only used for posting a resume or looking for a job but it’s being used to network with clients, centres of influence, share your content and connect with prospects.

2019 Ontario Budget

2019 Ontario Budget

The 2019 budget for Ontario was announced by Vic Fedeli, Finance Minister, giving details of a deficit of $11.7 billion for 2018-19 and $10.3 billion for 2019-20. Below are details of the key changes in relation to personal and corporate finances.

Personal

The budget did not announce changes to personal tax rates.

Ontario Childcare Access and Relief from Expenses (CARE) tax credit

Effective the 2019 tax year, the budget introduces a new refundable Ontario Access and Relief from Expenses (CARE) personal income tax credit, beginning with the 2019 tax year.

The tax credit will be based on the taxpayer’s family income and eligible child care expenses. It will provide the following tax credit per child up to:

  • $6,000 under the age of 7

  • $3,750 between age 7 to 16

  • $8,250 with a severe disability

The new credit will be calculated as the amount of eligible child care expenses multiplied by the credit rate shown below. The credit is eliminated when family income is greater than $150,000.

For 2019 and 2020, the taxpayers may claim the new tax credit on their tax returns. In 2021, Ontario intends to allow families to apply for regular advance payments.

Estate administration tax

Effective Jan 1, 2020 the budget eliminates the Estate Administration Tax on the first $50,000 of an estate’s value and extends the filing deadline of the Estate Administration Tax Information Return with the Ministry of Finance to 180 days (from 90 days) after the receipt of an estate certificate, and extends the deadline for filing amended information returns to 60 days (from 30 days).

Review of property tax assessment system

The province will review the property tax assessment system.

Addressing tax loopholes and tax integrity

The province has created a specialized unit of tax experts to find and address tax loopholes and abuse.

Corporate

The budget did not announce changes to the provincial corporate rate.

Ontario interactive digital media tax credit

The budget reduces the minimum Ontario labour expenditure to qualify as a specialized digital game corporation to $500,000 (from $1 million.)

Review

The budget will review the Ontario Innovation Tax Credit, other research and development incentives and cultural media tax credit certification process.

Please don’t hesitate to contact us if you have questions about how the budget will affect you.

Financial Planning Checklist for Incorporated Professionals

When dealing with an incorporated professional, things can get pretty complicated. This checklist is focused on helping you make sure you don’t forget to discuss key aspects of a professional’s financial planning.

Financial Planning Checklist for Business Owners

When dealing with a business owner, things can get pretty complicated. This checklist is focused on helping you make sure you don’t forget to discuss key aspects of a business owners financial planning.

Financial Planning Checklist

This financial planning checklist is client-centric and focused on their entire financial picture with the goal of having a meaningful and open conversation with client/prospect about their finances.

Taxation of Estates: Changes are coming

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Last year, the federal government announced that changes would be coming with respect to testamentary trusts, these new changes come into effect January 1st, 2016.  The new changes include:

  • No Graduated Tax Rates Available for Testamentary Trusts
  • All income earned and kept by a Testamentary Trust will be subject to tax at the top flat rate. (rate equal to federal personal tax rate of 29%)
  • Exceptions to the rules: Graduated Rate Estate and Qualified Disability Trust

What’s a Graduated Rate Estate and why 36 months?

Graduated Rate Estate occurs as a result of death and can exist for 36 months following death.  During the 36 months, the estate is eligible for the “old graduated rates”, after the 36 months the estate becomes subject to the top flat tax rate.

36 months is considered a reasonable amount of time by the federal government because most estates are typically wound up in this time.

What does this mean?

  • Increased income tax consequences
  • In some cases, tax liability shifts from the trust to the deceased beneficiary.
  • Existing plans will need to be reviewed

With the changes coming in 2016, it’s time to review how you would like to leave your legacy to the next generation, your favorite charity or beneficiaries. By getting your financial affairs in order, you can make important decisions about yourself, your family and any wishes you wish to be fulfilled.

We can help with this.

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Capital Gains Exemption