The federal budget, which Prime Minister Mark Carney and Minister of Finance and National Revenue Francois-Philippe Champagne delivered in November, was light on tax policy but contained a few measures for advisors to track.Justin Tang/The Canadian Press
The year began with confusion clouding the tax-filing season as the Liberal government, suddenly in flux after Prime Minister Justin Trudeau’s resignation, and the Canada Revenue Agency (CRA) figured out how to administer capital gains – specifically, whether or not to use a proposed inclusion rate that hadn’t passed into law.
Readers will be forgiven for almost forgetting those weeks of uncertainty, as incoming Prime Minister Mark Carney hastily abandoned the capital gains inclusion rate hike. (Those who sold assets to get ahead of the proposed hike likely have longer memories.) But there were other stories to follow, including court cases, a new federal budget and tips for the year ahead.
CRA tells taxpayers reporting 2024 capital gains to hold off on filing their tax returns
Before the Liberals ditched the hike to the capital gains inclusion rate altogether, they said they would defer it for a year. That meant the CRA, which had been administering the proposal even though legislation hadn’t passed, had to change course. In mid-March, the agency put out a release telling taxpayers reporting 2024 capital gains to wait to file their tax returns while it updated its systems to reflect the 50 per cent inclusion rate.
When an RRSP overcontribution makes sense and other year-end tax tips
Some clients who turned 71 this year and are still working might consider overcontributing to their RRSP before the end of this month. While they’ll be hit with a penalty on the overcontribution, they’re likely to generate a larger tax benefit from being able to deduct the amount in 2026 or a future year.
Time to sell U.S. property? Read this before you list it
The Trump administration’s tariff war and threats to make Canada the U.S.’s 51st state have some Canadians considering selling their U.S. property. Advisors say rising property values and a lower Canadian dollar compared with the U.S. greenback are making the decision to sell even more attractive, but there are tax effects to keep in mind.
Taxpayer uses Google Maps to win appeal over CRA’s denial of job relocation moving expenses
The Tax Court of Canada has ruled in favour of a taxpayer who deducted relocation expenses related to a move for a new job, relying on Google Maps to demonstrate he met the distance threshold requirement. Rudy Mezzetta breaks down the case.
How splitting pension income helps couples lower their combined tax bill
One of the more powerful tax-planning opportunities available to older clients is splitting pension income with a spouse or a common-law partner. Here’s how it works.
How cross-border beneficiaries can avoid a nasty tax surprise when a business-owner parent dies
Many high-net-worth Canadians have a significant portion of their wealth tied up in Canadian corporations because of the tax deferral and other benefits these structures provide. And many of these families have beneficiaries who are U.S. taxpayers (either U.S. citizens resident in Canada or U.S. residents). As Max Reed explains, this situation gives rise to potential U.S. estate and income tax issues.
How a little planning can make a big difference when claiming child-care expenses
Daycare is a top deduction for parents filing their income taxes, but many don’t consider other writeoffs eligible under the child-care umbrella, potentially leaving money on the table. Deanne Gage offers these tips from advisors.
Bare trusts delayed and farewell UHT: a budget tax roundup for advisors
This year’s federal budget, when it finally arrived in November, focused on economic issues more than tax policy. Still, there were some noteworthy changes for advisors to track.
Tax-saving tips for registered plans before year-end
Clients often think of the new year as a time to review tax and investment strategies for their registered plans. However, some tax-saving opportunities may be missed if they don’t act before Dec. 31. From timing withdrawals to maximizing contribution room, here are some key tax-planning moves for registered plans to consider before the end of the year.
You’ve been flagged for a CRA audit. Here’s what happens next
Being the subject of a CRA audit can prompt a range of emotions, from panic to frustration to feeling defensive or adversarial. Experts say the best way to minimize the impact of an audit is to tamp down negative emotions, recognize auditors are professionals simply carrying out their work, and accept the tax agency’s broad authority to request information.