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Several measures were introduced during 2020 to help Canadians navigate the economic impacts of COVID-19.  Often these measures included cash payments.  This article provides an overview on what government assistance may be taxable to you or your loved ones.

With the end of the year fast approaching, Canadian taxpayers will want to consider all the tax planning opportunities available to them.  Which year-end planning strategies apply to you will depend upon your specific circumstances and objectives.  The IG Wealth Management Year-end Tax Planning Checklist can help you understand what opportunities are most suited to you.

To take full advantage of the tax-deferred growth available when investing in a tax-free savings account (TFSA), many Canadians strive to maximize their TFSA contributions as early in the year as possible.  However, while the goal with a TFSA should be to contribute as much as you can within the limits of your available contribution room, you also need to be mindful not to over-contribute.  Putting more money in a calendar year than you’re allowed by law could result in penalties.  The severity of which will depend on the circumstances of the over-contribution. 

When most of us think of year-end tax planning, we typically consider our personal situation.  Yet, there are many tax-opportunities for business owners to explore as we near the end of another calendar year.

With the physical distancing measures in place due to the spread of the COVID-19 virus, many Canadians are now working from home.  If working from home is new for you, you may be wondering whether there are any tax deductions you can claim.  What expenses would be eligible and what documentation would be required?

The Canada Revenue Agency (CRA) calls home office expenses “work-space-in-home-expenses”.   In this article, we’ll provide an overview to help you navigate these work-space-in-home deductions.

As we move toward the end of the year, we approach the season of giving.  Many Canadians also increase their charitable giving during this period.  However, not everyone is maximizing their giving in the most tax-efficient way.   Whether it’s a continuation of donations made throughout the year, or an initial donation, there are several strategies to consider when donating prior to the end of the year.  

Canadians who are not U.S. citizens, green card holders or residents, may be surprised to learn that they too may be subject to U.S. estate tax even if they are considered non-resident aliens in the U.S.

In June, the Canada Revenue Agency (CRA) announced that they will review six years of US real estate transactions to determine if any Canadian taxpayers missed reporting their ownership of real estate property or real estate transactions. Could this apply to you?

When we are young, life insurance is used to protect our family by providing money to replace our income. However, as we approach retirement our need for income replacement lessens and the focus switches to wealth protection. Wealth protection is a permanent concern, so it requires permanent solutions. 

Are you, like many Canadians, planning to renovate your home or cottage? 

As students begin to pay their tuition for the upcoming fall semester, it is important to know what fees and expenses can be deducted on this year’s tax return. This article will highlight some of the key deductions and credits that can help reduce your family tax bill for the 2020 filing year.

Ensuring that your loved ones are cared for after your passing is a common goal for families. This is especially relevant where your loved one is a person living with disabilities. The challenge is – even the most well-intentioned gifts can have unforeseen financial implications. To ensure that your chosen beneficiary’s financial resources, such as social assistance benefits, are not diminished by any gifts, you may wish to consider using a Henson trust among other tax planning strategies as part of your overall estate plan.

The Voluntary Disclosure Program (VDP) provides a second chance for Canadians to correct their previously filed tax returns. However, the program maintains a goal of fairness and is not meant to reward individuals or corporations who have willfully avoided paying their fair share of taxes. It provides accepted applicants relief from prosecution, and depending on the situation, relief from penalties that would otherwise be applied. All taxes owing, plus some interest is required to be paid.

Each year, some Canadians choose to live and work in the U.S. either temporarily or permanently. While working in the U.S., they may choose to participate in a U.S. retirement plan such as a 401(k) or 403(b) plan, or an Individual Retirement Account (“IRA”). When they return to Canada, the Canadian plan holder may be wondering what to do with the funds in these plans.

With limited ability to travel this summer, many Canadians are looking to rent or purchase vacation properties closer to home.  At the same time, non-residents who own Canadian property may also be faced with travel restrictions and offering their cottages for rent or for sale. Before you rent or buy a vacation property from a non-resident, there are a few important tax implications that you should know.

It’s wonderful to be able to leave children an inheritance, but you want to make sure that the wealth you’ve worked so hard to build and set aside for their future is protected, regardless of where life takes them.  Many parents are concerned with the ability of their child to manage a large amount of money, and other concerns may stem from the possibility of a failed relationship.

There is increased financial uncertainty for many high school graduates, post-secondary students and parents right now. Typical summer jobs or internships may not be available, which has impacted how many students and families will cover tuition costs and living expenses. This could be coupled with other unexpected financial challenges as a result of COVID-19’s effect on a family business or investments volatility.

If you’re a U.S. taxpayer, learn about the additional information we can provide which allows you to make an important election for your investment in Canadian mutual funds and will make it easier to file your U.S. tax return.

A family investment trust might be right for you if you have a substantial amount of cash and investments that are not needed to fund your own lifestyle and retirement needs, plus a desire to either:

• create an investment fund for the next generation, or
• tax efficiently pay for private schooling or other non-essential expenses for children or grandchildren.  

With the appreciation of the U.S. dollar and the price of U.S. real estate rising in recent years, more Canadians are looking to lock in their gain by selling their U.S. vacation property. Many people are also unable to travel to their property, or may be looking to upgrade or downsize and have decided that now is the time to sell.  Whatever the reason for selling, there are a few things that Canadians should know before listing their property for sale.

Prescribed rate loans can be an excellent financial planning tool and are one of the few income splitting strategies that remain for many Canadian families.  While commonly used to split income between spouses, prescribed rate loans can also be used to efficiently split income with adult children or to fund family investment trusts. A prescribed rate loan can be a great way for a lower income family member to benefit from investment assets, by accessing their lower marginal tax rates.

With COVID-19’s effect on market conditions, now could be a great time to review your investment portfolio to identify tax planning opportunities, such as tax loss selling.  In this article, we’ll discuss how tax loss selling works and how to ensure losses you do trigger can be claimed as intended. 

The loss of a loved one is difficult and having to deal with the administration of their estate after they’ve passed can be especially overwhelming. Declining markets can add another layer of financial stress when administering an estate during an already emotional time. However, there are tax strategies that can help address a decline in market values.  This article highlights potential tax relief where there has been a decline in the value of assets, both registered and non-registered, after the holder of the accounts has passed away.

With the onset of the COVID-19 pandemic, we have seen inspirational stories of individuals and organizations helping their communities and supporting causes in a variety of ways.  During this time, you may be thinking about how you can contribute more or whether you should revisit your charitable giving approach. 

COVID-19 has created an environment where concerns for our loved ones’ health and economic well-being are both top of mind.  It’s also made many of us appreciate that we’re not invincible, and sometimes we can’t control the future.  This resonates closely for families who have either lost a family member or are concerned about an elderly person in their life.  

With Mother’s Day around the corner, we spoke to IG Private Wealth Management Consultant moms about building financial confidence in the next generation.

Explore how recent changes to amended tax on split income (TOSI) rules apply to and have affected personal rates of tax, pension splitting, taxable capital gains, property and more.

Canadian professionals including physicians, lawyers, dentists, and veterinarians choose to create a professional corporation for a wide variety of personal and financial reasons. Is it right for you?

Whether you’re leaving a little or a lot, the key to protecting your loved ones is simple: just start.

As a business owner, having a well thought out tax and estate plan is key for financial success.

Adding your adult child as a joint owner to your property could have unintended tax and legal consequences.*

As a member of a blended family you need to pay careful attention to how your estate is structured to avoid inadvertently disinheriting your children.