Many Canadians consider a living trust when creating their estate plans. More commonly known as inter vivos trusts, the trusts can be effective in reducing estate administration fees, avoiding complex estate settlements and ensuring confidentiality on death of its settlor. In some cases, these benefits can extend to a principal residence transferred to the trust. This article discusses the availability of the principal residence exemption on sale of a home by a trust, and where the exemption is not available, the taxation of accrued gains both at the time of sale and at death.Read more »
When it comes to philanthropy, altruism drives a Canadian’s desire to donate; however, Canada’s income tax regime may impact how the donation is made.
If a client wants to make a gift or donation to a Canadian charity, as advisors we can provide value by suggesting how to maximize the value of a donation or how to make a donation more tax efficient.Read more »
Prior to 1972, capital gains on the disposition of property were not subject to tax pursuant to Canada’s Income Tax Act (ITA). Over the last 44 years, Canada’s Department of Finance, pursuant to its objective of taxpayer fairness, has introduced various tax measures impacting the reporting and taxation of capital gains, such as:Read more »
The 2016 Federal Budget announced changes impacting investors who hold Canadian Corporate Class funds. As of January 1st, 2017, any switches, including systematic rebalancing, of Corporate Class funds will be treated as a disposition for tax purposes. Advisors and investors should be reviewing existing open, non-registered accounts prior to December 31st to take advantage of a final tax-free account rebalancing, and recognize that with new 2017 tax changes, Corporate Class funds remain a tax-efficient investment solution.Read more »
Everyone loves to invest tax-efficiently, and RRSPs and TFSAs are designed to do just that. But, in addition to the basics of how these plans work, there are considerations that should be kept in mind to maximize their usefulness. In this short webcast, we talk about when to use an RRSP vs a TFSA and discuss capital loss planning concepts related to these plans.