Canadian snowbirds have to start closely counting the days they spend in the sunbelt because under new rules, if they overstay their welcome in the States they could be deemed U.S. residents for tax purposes. As of June 30 both countries began to electronically track entries and exits and they share the information. People who […] Read more
Stories by Grant Diamond
Family gift may be more trouble than it’s worth
What happens in a family of four children when three of the children have left the farm and one stays to help nurture and grow the asset? In the succession plan do they all get a proportional value of the farm or does the child who has remained on the farm receive more to reflect […] Read more
Life insurance can protect assets, but consider tax implications
Many small business corporations, including farm corporations, use life insurance as a way to protect assets. Premiums for permanent insurance on an organization’s principals aren’t deductible, so it would make sense that the proceeds are not taxable. A policy’s net proceeds, which are the payout less the adjusted cost base of the policy, go into […] Read more
Portion of insurance is tax deductible; proceeds tax free to shareholders
Insurance can be complicated, but introducing tax implications related to corporate life insurance plans raises the complication factor enormously. There are four types of life insurance: Group term life insurance may be offered by a company or partnership for life and accidental death and dismemberment (AD&D) coverage to an employee or to the employee and […] Read more
’Tis the season for giving, and sometimes for taking away
How does the Canada Revenue Agency stack up against Santa Claus in new tax presents for the 2013 tax year? Well, sometimes the comparison might be more appropriate with Scrooge than Santa, but some goodies have been given out along the way as well. The Scrooge category included a decision to restrict farm losses. Based […] Read more
How to fund retirement
The aging of the Canadian population is common knowledge as the boomer generation begins to enter its senior years. The median age of the Canadian population was 40 years on July 1, 2012. In the past 20 years, between 1992 and 2012, the median age in Canada has increased by 6.4 years. As of July […] Read more
Tax planning should be part of complete financial plan
For many, tax planning means the once-a-year mad scramble to organize the necessary paperwork before the tax filing deadline. In reality, this is not tax planning. Real tax planning requires a comprehensive approach to finances and should be tackled year-round. Careful planning for your tax obligations should be an integral element of a well-crafted financial […] Read more
Canada Pension Plan, Old Age Security options from 60 to 70
Age 65 is one of those milestones that Canadians may have trouble accepting. However, it is softened somewhat by eligibility to receive some of your tax money back in the form of Canadian Pension Plan and Old Age Security benefits. You have the option of taking your CPP as early as 60 or delaying it […] Read more
More resources to nab tax dodgers
Tax season is over, let audit season begin. Canadian taxpayers beware. The 2013 federal budget increased the emphasis on tax compliance programs. The government intends to increase its revenues by hundreds of millions of dollars in coming years by ensuring citizens pay all the tax they are supposed to. Every major city in the country […] Read more
Plan now for pain-free 2013 tax year
Tax season is not a happy one for most Canadians. We fret our way through the entire process, generating a significant amount of stress along the way. Now that the tax season is over, we can all breathe a sigh of relief. To make future tax seasons less stressful, start today with these important but […] Read more
