1 NOVEMBER 2015 YEAR-END TAX PLANNER Our latest ideas and tips in reducing your 2015 tax burden INSIDE THIS NEWSLETTER 1-3 WELCOME! D ear clients and friends, as we approach the end of another year, now would be a great time to consider some tax planning measures that could help reduce your 2015 tax burden. To assist you with this, the following are some ideas you may want to consider. Your Segal advisor can assist you in determining which of these ideas make sense for you. WHAT S NEW W ith the 2015 budget announcement and subsequent change in the federal government, the proposed new measures are as follows: WHAT S NEW 4-6 INDIVIDUALS 7 CORPORATIONS 8 PARTNERSHIPS / TRUSTS & ESTATES 10 APPENDIX I KEY TAX DATES 11 APPENDIX II 2015 PERSONAL TAX RATES 12 APPENDIX III 2015 CORPORATE TAX RATES Federal Personal Tax Rates T he newly elected federal government proposed to introduce certain tax measures that could affect taxpayers in the top marginal tax brackets. Increase the tax rate on annual incomes over $200,000 from 29% to 33%. The combined Federal and Ontario marginal tax rates for the highest tax bracket will increase as follows: ORDINARY INCOME CAPITAL GAINS ELIGIBLE DIVIDENDS NON- ELIGIBLE DIVIDENDS Since it appears the above rates will not be effective until 2016, consider accelerating the payment of a salary or bonus in 2015 rather than in There will be a 4% savings on the combined Federal and Ontario taxes on ordinary income. CONSIDER CRYSTALLIZING CAPITAL GAINS IN 2015 AND REALIZE SAVINGS OF UP TO 2% 49.53% 53.53% 24.75% 26.76% 33.82% 39.34% 40.13% 45.30%
2 Accelerate payments of eligible dividends and non-eligible dividends in 2015 to benefit from tax savings of 5.52% and 4.92%, respectively. REDUCED SMALL BUSINESS TAX RATE C urrently Canadian-controlled private corporations with less than $15M of taxable capital benefit from the federal small business tax rate of 11%. The new legislation has further reduced the tax rate to 9% which will be phased in by As a result the current combined Federal and Ontario small business tax rate of 15.5% will be reduced as follows: Jan 1, 2016 Jan 1, 2017 Jan 1, 2018 Jan 1, % 14.5% 14% 13.5% The reduction will be prorated for companies with off-calendar year-ends. The newly elected federal government also promised to reduce the small business tax rate from 11% to 9% but did not specify the timing of such a reduction STOCK OPTION DEDUCTION CAP T he newly elected federal government is proposing to cap the amount that can be claimed through stock option deductions to $100,000 which may become effective in Consider exercising your stock option benefit in 2015 to get the 50% stock option deduction on the full amount of the benefit. You may want to obtain grants of new stock options in 2015, in the event that the government provides grandfathering rules for pre-2016 grants. CAPITAL GAINS STRIPPING C apital gains stripping is a method of avoiding corporate taxes by converting capital gains into dividends. Intercorporate Canadian dividends are tax-free in the hands of Canadian corporations. To stop corporations from stripping capital gains tax-free, the 2015 federal budget proposed changes that will re-characterize certain tax-free intercorporate dividends as capital gains subject to tax. Many standard corporate transactions that give rise to dividends may now be caught by the new rules. These new rules when enacted will be effective from April 21, TAX-FREE SAVINGS ACCOUNT (TFSA) CONTRIBUTION LIMIT U nder the new legislation, the TFSA contribution limit for 2015 is increased from $5,500 to $10,000. The new federal government platform promises to cancel the increase and revert back to the contribution limit of $5,500. It is not clear year yet as to how the new government will make this change. CONSIDER CONTRIBUTING THE FULL $10,000 TO YOUR TFSA BY THE END OF 2015 BEFORE THE INCREASE. HOME ACCESSIBILITY TAX CREDIT T he 2015 budget proposed a new Home Accessibility Tax Credit effective January 1, This is a non-refundable tax credit of 15% on up to $10,000 of eligible expenditures per qualifying individual per eligible dwelling. The expenditure should be incurred for home renovations to improve the safety and/or accessibility of the eligible dwelling. An eligible dwelling must be the principal residence of the qualifying individual. A qualifying individual is a person 65 years or older after the end of 2015 and is eligible for the disability tax credit. The non-refundable tax credit will apply for eligible expenditures for work performed and paid for after As such, you may want to wait until after the end of 2015 to make such renovations. 2
3 CHILD CARE EXPENSE DEDUCTION C urrently, the maximum annual amount that can be claimed under the Child Care Expense Deduction is limited to the least of: The total amount spent on child care expenses; Two-thirds of the lower income spouse s earned income; and The total of the maximum dollar limits for all children, or $7,000 per child under the age of seven, $4,000 per child aged 7 to 16, and $10,000 for children that are eligible for the Disability Tax Credit regardless of age. Starting in 2015, the new legislation increased the above threshold by $1,000 per child. FAMILY TAX CUT CREDITS T he previous government had introduced a family tax cut credit for 2014 and subsequent years that would allow a higher income spouse to transfer up to $50,000 of taxable income to a spouse in a lower tax bracket for federal tax purposes. This transfer would result in a non-refundable tax credit of up to $2,000 for couples with children under 18 years of age. The credit could only be claimed by one spouse and certain conditions must be met to be eligible for the non-refundable credit. The newly elected government has proposed to repeal this family tax cut credit in CHILD TAX CREDITS I n previous years a non-refundable Child Tax Credit of $2,255 could be claimed per child under the age of 18 years, resulting in a tax savings of $338. This credit is no longer available for 2015 and subsequent years. ONTARIO APPRENTICESHIP TRAINING TAX CREDITS T he 2015 Ontario budget proposed to decrease the general tax credit from 35% to 25% and the rate for small business with salaries or wages under $400,000 per year from 45% to 30% for apprentices who commenced an apprenticeship program after April 23, ONTARIO RETIREMENT PENSION PLAN O ntario proposed to introduce a new defined pension plan. As per the current legislation a new mandatory pension plan is to take effect by January 1, The plan is to be funded by Ontario employers and employees. LIFETIME CAPITAL GAINS EXEMPTION F or 2015 and subsequent tax years, the lifetime capital gains exemption is increased to $813,600 on the disposition of qualified small business corporation shares by individuals. In addition, the exemption will be indexed for inflation for taxation years after FOREIGN REPORTING FORM T1135 FOREIGN INCOME VERIFICATION STATEMENT I n 2014, the Canada Revenue Agency revised the Form T1135 for reporting specified foreign property held with a cost in excess of $100,000. The form required detailed information which was a time consuming and complex process. 3 THE NEW LIMIT WILL APPLY TO ALL INDIVIDUALS, EVEN THOSE THAT PREVIOUSLY USED THEIR CAPITAL GAINS EXEMPTION To reduce the compliance burden on taxpayers, the 2015 budget proposed to increase the threshold for the detailed foreign reporting required by the current form T1135 from $100,000 of cost to $250,000.
4 INDIVIDUALS REGISTERED RETIREMENT SAVINGS PLANS The maximum RRSP contribution room for 2015 is limited to the lesser of $24,930 or 18% of your 2014 earned income less your pension adjustment. Your available contribution room should also be printed on the 2014 Notice of Assessment from the CRA. The deadline for your 2015 contribution is February 29, If you have excess cash available, consider making your 2016 contribution early, any time after January 1, A salary of $140,945 is required in 2015 to earn the maximum RRSP contribution room of $25,370 for the 2016 taxation year. If you are turning 71 years old in 2015, you must terminate your RRSP this year. You can convert the RRSP into a Registered Retirement Income Fund (RRIF), into an annuity, or it can be withdrawn in a lump sum. You must make your 2015 RRSP contribution by December 31, If you are terminating your RRSP in 2015 and you have earned income, consider making an over-contribution to your RRSP. This will result in a tax deduction for 2016 even though you can no longer contribute to your RRSP in that year. Since the over-contribution will be subject to a 1% penalty per month, it is advisable that the contribution be made in December to minimize the penalty. Consider making a contribution to a spousal RRSP to achieve income splitting in the future. The contributions will grow tax-deferred until withdrawn, and will be taxed in the spouse s name at that time. The contributor is entitled to the deduction at the time the contribution is made. A spousal RRSP is particularly useful if you are over 71 but your spouse is younger than Although you may not be permitted to contribute to your own plan, you are permitted to make contributions to a spousal plan until the end of the year in which the spouse turns 71 years of age. Even if your children have no tax to pay, you may wish to file tax returns on their behalf. If they have earned income, they will generate RRSP contribution room which can be carried forward indefinitely. REGISTERED RETIREMENT INCOME FUND A s per the new legislation, for individuals aged 71 and over, the minimum withdrawal amount from a RRIF is reduced for 2015 and subsequent years. TAX TIP! SAVE THE RECEIPTS FOR THE ACTIVITIES YOUR KIDS PARTICIPATE IN; YOU MAY BE ELIGIBLE FOR CREDITS. IF YOU CARE FOR DEPENDENTS WITH A PHYSICAL OR MENTAL IMPAIRMENT, YOU MAY BE ABLE TO CLAIM UP TO AN ADDITIONAL $2,000 IN THE CALCULATION OF CERTAIN NON-REFUNDABLE TAX CREDITS RELATED TO THE NEW FAMILY CAREGIVER PROGRAM If you are an existing RRIF holder and have withdrawn more than the reduced 2015 minimum amount during 2015, you will be able to deduct in 2015 the re-contribution of the excess withdrawal amount made by February 29, REGISTERED DISABILITY SAVINGS PLANS The RDSP program is available to any Canadian Resident eligible for the Disability Tax Credit. The temporary measure to allow certain family members such as a spouse, common law partner, or parent of a disabled individual to become the plan holder of a RDSP as agent for an adult individual who might not be able to enter into a contract has been extended from the end of 2016 until the end of The RDSP or RRIF of a deceased individual can be rolled over to a RDSP of a financially dependent infirm child or grandchild, subject to certain conditions. The RDSP beneficiaries with shortened life expectancies can withdraw more of their RDSP savings without triggering the 10 year repayment rules, subject to certain conditions.
5 REGISTERED EDUCATION SAVINGS PLANS T ransfers between individual RESPs for siblings are allowed, subject to certain restrictions. This is intended to permit the same flexibility regarding the allocation of RESP assets among siblings as exists for RESP family plans. TAX FREE SAVINGS ACCOUNTS Effective January 1, 2015, the Tax Free Savings Account program permits Canadian residents 18 years of age or older to contribute $10,000 to their TFSA. If you have not contributed towards your TFSA since 2009, you will be eligible to contribute up to $41,000 by the end of A TFSA is similar to an RRSP as income and capital gains earned within the TFSA will not be taxable. However, unlike an RRSP, the contributions will not be deductible and withdrawals will not be taxable. FUNDS CAN BE GIVEN TO A SPOUSE TO ESTABLISH THEIR OWN TFSA AND THE NORMAL ATTRIBUTION RULES WILL NOT APPLY ONTARIO TRILLIUM BENEFIT R ecipients of the Ontario Trillium Benefit can choose to receive the benefit monthly or as a single payment at the end of the benefit year. The Ontario Trillium Benefit includes the Ontario Sales Tax Credit, the Ontario Energy and Property Tax Credit, and the Northern Ontario Energy Credit. MAKE A CHARITABLE DONATION I f your contributions are in excess of $200, you will benefit from a greater level of tax savings. Since the CRA permits either spouse to claim the donations, you should have one spouse claim all donations made by both spouses. If you have little or no tax owing this year, you may choose not to claim the charitable donation. UNCLAIMED CHARITABLE DONATIONS CAN BE CARRIED FORWARD 5 YEARS. CONSIDER SAVINGS YOUR UNCLAIMED DONATIONS FOR A FUTURE YEAR One advantage of having the lower-income spouse claim all of the donations is that the lower-income spouse may receive a tax refund that can be reinvested without the attribution rules applying that would tax the investment income in the hands of the higher income spouse. Donations to US charities can only be claimed on your Canadian tax return if they were made to a prescribed university or to the extent that you have US source income. Instead of cash, donate stocks or mutual fund units that have unrealized capital gains. Capital gains taxes are eliminated on gains that are generated when publicly traded securities are donated directly to a charity, or to a private foundation. INCOME-SPLITTING C onsider making an investment loan to your lower-income spouse to split income earned on nonregistered assets and reduce taxes on the income. The CRA allows these loans as long as you charge at least the CRA prescribed interest rate on the loan and document the interest payments. Currently the prescribed rate is 1%. The set interest rate will apply for the duration of the loan. Payment of the interest is due at the end of the calendar year and must be paid no later than January 30th of the following year. TAX LOSS SELLING Consider triggering capital losses before the end of the year to offset any capital gains realized in 2015 or in one or more of the last three years. 5
6 Beware that specific rules prohibit you or an affiliated person from buying an identical asset within 30 days of the sale. Normally, stock transactions are settled within three business days. Due to weekends and holidays, consider completing all trades by December 24, ADJUST YOUR DECEMBER INSTALMENTS I f your income has decreased since last year, you may be able to decrease your December instalment payment. Use caution since any under-payment will result in penalties and non-deductible interest charges. ADOPTION EXPENSE TAX CREDIT T he maximum amount of eligible expenses for the Adoption Expense Tax Credit is increased to $15,255 per child for the 2015 taxation year. MEDICAL EXPENSES M edical expenses can only be claimed in excess of a minimum threshold. For 2015, the threshold is the lesser of 3% of your net income, or $2,208. Therefore, if your 2015 income exceeds $73,600, you can only claim medical expenses in excess of $2,208 paid in the year. You are permitted to select any 12 month period ending in 2015 when claiming medical expenses. You can plan for the timing of certain medical expenses since they are claimable based on when they are paid. For example, you may wish to pay for orthodontic treatment in full before the end of the year, even if the treatment will span the next year. A caregiver can claim eligible expenses under the medical expense tax credit (METC) for a dependent relative. There is no restriction on the amount paid. MEDICAL EXPENSES ARE CLAIMABLE BASED ON WHEN THEY ARE PAID PUBLIC TRANSIT TAX CREDIT Remember to keep each transit pass and related receipt to claim the credit. The public transit tax credit includes weekly passes and cost-per-trip electronic payment cards along with monthly passes. CHILDREN S ARTS TAX CREDIT T he Children s Arts Tax Credit is available for fees paid for the enrolment of a child under 16 years of age. The fees paid should be to an eligible program of artistic, cultural, recreational, or developmental activities. You can claim a 15% non-refundable tax credit based on a maximum of $500 of the fees paid for the program per year per child. A 15% non-refundable tax credit may be claimed on an additional $500 for a child who is eligible for the Disability Tax Credit and is under 18 years of age. TUITION TAX CREDITS Fees paid for an examination to obtain professional status recognized by federal and provincial statutes can be claimed as a tuition tax credit. Examination fees paid to an educational institution, professional association, or provincial ministry will qualify. OTHER SUGGESTIONS If income in an inter-vivos trust is to be taxed in a beneficiary s return, the income must be paid or payable to the beneficiary by December 31, Consider purchasing assets eligible for capital cost allowance before year-end. Up to $36,150 of non-eligible dividends can be received by an Ontario resident who has no other income, without any income tax liability resulting. The Ontario Health Premium of $450 will still be payable. 6
7 Up to approximately $50,122 of eligible dividends can be received by an Ontario resident who has no other income, without any income tax liability. The Ontario Health Premium of $600 will still be payable. CORPORATE CORPORATE TAX RATES T here is no change to the corporate tax rate for The combined federal and Ontario tax rate on active business income for a Canadian Controlled Private Corporation remains at 15.5% (26.5% if active business income exceeds $500,000). For investment corporations, the tax rate remains at 46.17%. CAPITAL GAINS If you do not receive all of the proceeds of sale upon closing, you may be able to defer some of the tax for up to five years. This can be extended to 10 years for farm property. Capital gains on the sale of shares of a qualifying corporation may be sheltered by the capital gains exemption, with a lifetime limit of $813,600 for 2015 and indexed for subsequent years. If you have previously claimed an allowable business investment loss (ABIL) or if you have a cumulative net investment loss (CNIL), your ability to claim the capital gains exemption in 2015 may be restricted. Steps should be taken to rectify this issue in order to claim the capital gains exemption. SHAREHOLDER LOANS SHOULD BE REPAID I f you or your family members have borrowed money from a corporation in fiscal 2014, the loan must be repaid by the end of fiscal If the loan is not repaid at that time, it will be treated as income for Also, remember to pay any interest owing to the corporation by January 29, 2016 in order to avoid receiving a taxable benefit on unpaid interest. DECLARE A BONUS A CCPC can take advantage of lower corporate tax rates if their taxable income is below $500,000. If a bonus is declared and accrued in order to bring taxable income down to this level, the bonus must be paid within 179 days after the fiscal period. If individual cash requirements are low, consider keeping income in the corporation to defer personal tax to later years as corporate rates are likely less than personal rates. The combined federal and provincial tax rates on active business income for a CCPC is 15.5% (26.5% if active business income exceeds $500,000) compared to the personal tax rate of 49.53% (if taxable income exceeds $220,000). This may increase to 53.53% per the newly elected government. INTEREST EXPENSE I nterest may be deductible if it is incurred for the purpose of earning income from a business or from property; interest on money borrowed for personal purposes is not deductible. Any excess cash should be applied first against paying off your nondeductible loans. CONSIDER RESTRUCTURING YOUR BORROWINGS SUCH THAT THE INTEREST INCURRED IS TAX DEDUCTIBLE 7
8 GST/HST ELECTION FOR CLOSELY RELATED PERSONS S upplies of most property and services made between closely related parties (e.g. where 90% or more of the ownership is held by one corporation of another corporation) that are resident in Canada and exclusively engaged in commercial activities are not subject to GST/HST if an election is completed and filed with the CRA. Previously, the election form was simply completed and retained with each member. Effective January 1, 2015, a prescribed election form is required to be filed with the CRA by the first date on which any of the parties to the election is required to file a return. Parties to an election made before January 1, 2015 will have until January 1, 2016 to file the election with the CRA. Parties to this election will be jointly and severally liable for any GST/HST owing on supplies. PARTNERSHIPS D eferral opportunities for corporations with a significant interest in a partnership that have a different fiscal period than the partnership are limited. Corporations are required to accrue income for the portion of the partnership s next fiscal period that falls within the corporation s taxation year. TRUSTS & ESTATES N ow is the time to review your trust arrangement and to make sure all documentation is up-to-date and to ensure that all transactions are completed and recorded on a timely basis. With various court decisions on the trust s residency, it is important that you review the arrangement for family trusts set up abroad or in another province in determining where a trust is resident for Canadian tax purposes. A testamentary trust is currently taxed at graduated rates. New legislation eliminates the preferential tax treatment available to testamentary trusts. Effective January 1, 2016, a testamentary trust will only be entitled to use the graduated rates for the first 36 months after the death of the testator. After that period, a testamentary trust will be subject to tax at the highest marginal tax rate and will be required to adopt a December 31 year-end. For existing testamentary trusts that have a fiscal year-end that is other than December 31 and have completed their 36 month anniversary before or during 2015 will have to adopt a December 31 year-end. A stub period tax return will be required to be filed if you fall in this category. New rules that are to be effective January 1, 2016 for spousal, alter ego, and joint partner trusts include a deemed year-end to be triggered by the death of a spouse beneficiary in a spousal trust, a settlor in an alter ego trust, and the survivor of the settlor and their spouse in a joint partner trust. In the year of death, trust income will be taxed in the deceased beneficiary s terminal return and not the trust. Currently a donation made through an individual s will is treated as having been made by the individual immediately prior to his/her death. Commencing in 2016 and subsequent years, the donations made by the will, will be treated as having been made by the estate at the time the property is transferred to a qualified donee. Where the transfer is made within 36 months following an individual s death, the estate may claim the donation tax credit either in the year the donation is made or in an earlier year of the estate. Alternatively, the estate may deem the deceased individual to have made the donation in the year of death or the previous year. THE INFORMATION PROVIDED IN THIS PUBLICATION IS INTENDED FOR GENERAL PURPOSES ONLY. CARE HAS BEEN TAKEN TO ENSURE THE INFORMATION HEREIN IS ACCURATE; HOWEVER, NO REPRESENTATION IS MADE AS TO THE ACCURACY THEREOF. THIS INFORMATION SHOULD NOT BE RELIED UPON TO REPLACE SPECIFIC PROFESSIONAL ADVICE. 8
9 ABOUT SEGAL LLP E stablished in 1976, Segal LLP is a top 30 Canadian accounting firm and the third largest independent firm in the Greater Toronto Area. Offering integrated solutions in business advisory, assurance, and taxation, Segal delivers a comprehensive approach in developing solutions and providing reliable advice. Adding to your success isn t just our motto, it s our mission. O ur results oriented team takes a hands-on approach to developing personalized solutions for you and your business. Drawing on our experience and ability to create opportunities through insight, we will assist you in every step of the way in executing your short and long-term goals. You and your business aren t limited by a border and neither are we. Our membership in Moore Stephens International Limited gives us the ability to serve you in over 105 countries. O ur services are continuously monitored and adjusted to meet our clients changing needs. We keep ourselves adaptable and up-to-the minute so you can stay one step ahead. Our talented team is able to provide services in the following areas: AUDIT AND ASSURANCE SERVICES TAXATION ESTATE AND PERSONAL FINANCIAL PLANNING MERGERS & ACQUISITIONS BUSINESS ADVISORY FINANCIAL REPORTING SEGAL LLP 2005 SHEPPARD AVE E. SUITE 500 TORONTO, ONTARIO M2J 5B4 (416)
10 APPENDIX I KEY DEADLINES Due Dates Items To Be Filed/Payments to be Made December 15, 2015 Final quarterly tax installment due for individuals for 2015 December 24, 2015 Final trading day on which to settle a trade in 2015 for Canadian stock exchanges December 31, 2015 Last day to make certain payments in order to claim tax credits or deductions on your 2015 individual tax return. For example: RRSP contributions if you turn 71 by December 31, 2015 Charitable and Political donations Child-care and child fitness/art expenses Investment counsel fees Medical expenses Moving expenses Tuition fees and interest on student loans Alimony and maintenance payments January 29, 2016 Interest due on family loans (to avoid attribution of income) February 29, 2016 Last day to file: T4, T4A, and T5 Summary and Supplementary forms February 29, 2016 Deductible contributions to your own RRSP or spousal RRSP (for 2015 deductions) RRSP Home Buyer s Plan repayment due (to avoid 2015 inclusion) March 15, 2016 First quarter tax installment due for individuals for 2016 income tax March 30, 2016 March 31, 2016 Last day to file income tax returns for inter vivos trusts without penalty Last day to file NR4 Summary and Supplementary forms regarding amounts paid or credited to non-residents of Canada May 2, 2016 Last day to file personal tax returns Last day to pay 2015 personal income tax Note: Self-employed individuals or spouses of self-employed individuals - the deadline to file your personal tax return is June 15, Any tax owing must still be paid no later than May 2, The filing deadline for personal returns may be later if individual or spouse died during the year (terminal return). 10
11 APPENDIX II PERSONAL TAX RATES 2015 Ordinary Income & Interest Income Capital Gains Canadian Dividends (Eligible) Canadian Dividends (Non-Eligible) Federal Only 29.00% 14.50% 19.29% 21.22% Alberta 40.25% 20.13% 21.02% 30.84% British Columbia 45.80% 22.90% 28.68% 37.99% Manitoba 46.40% 23.20% 32.26% 40.77% New Brunswick 54.75% 27.38% 38.27% 46.89% Newfoundland and Labrador Northwest Territories 43.40% 21.65% 31.57% 33.26% 43.05% 21.53% 22.81% 30.72% Nova Scotia 50.00% 25.00% 36.06% 41.87% Nunavut 40.50% 20.25% 27.56% 31.19% Ontario 49.53% 24.76% 33.82% 40.13% Prince Edward Island 47.37% 23.69% 28.70% 38.74% Quebec 49.97% 24.98% 35.22% 39.78% Saskatchewan 44.00% 22.00% 24.81% 34.91% Yukon 44.00% 22.00% 19.29% 35.18% 11
12 APPENDIX II CORPORATE TAX RATES 2015 Canadian-Controlled Private Corporations (CCPCs) General Manufacturing & Processing (M&P) < $450,000 Active Business $450,000- $500,000 Investment Income Federal 15.00% 11.00% 34.67% Alberta 26.00% 14.00% 44.67% British Columbia 26.00% 13.50% 45.67% Manitoba 27.00% 11.00% 23.00% 46.67% New Brunswick 27.00% 15.00% 46.67% Newfoundland and Labrador 29.00% 20.00% 14.00% 48.67% Northwest 26.50% 15.00% 46.17% Nova Scotia 31.00% 14.00% (up to $350K) 27.00% ($350K- $500K) 50.67% Nunavut 27.00% 15.00% 46.67% Ontario 26.50% 25.00% 15.50% 46.17% Prince Edward 31.00% 15.50% 50.67% Quebec 26.90% 19.00% (Non- M&P) 15.49% (M&P) 46.57% Saskatchewan 27.00% 25.00% 13.00% 46.67% Yukon 30.00% 17.50% 14.00% (non-m&p) 12.50% (M&P) 49.67% If you wish to obtain more information on any of the above, please contact your advisor at Segal LLP to review your situation and determine what steps might be taken before the year-end and in the new year to minimize your taxes. 12
YEAR-END TAX PLANNER November 2014 Inside this issue: Dear Clients and Friends, as we approach the end of another year, now would be a good time to consider some tax planning measures that could help reduce
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Year End Tax Update Fall 2015 Kevin Tran Director, Tax Advisory Services October 2015 August 2015 Agenda 1 Proposed Tax Changes Liberal Platform 2 Year-End Tax Planning - Simple Ideas 3 Distribution Planning
Page 1 of 10 Table of Contents What is an RRSP?... 3 Why should you put money into an RRSP?... 3 When should you start an RRSP?... 3 The convenience of regular RRSP deposits... 3 How much can you contribute?...
Choose the right investment Segregated fund policies versus mutual funds Choose the best option for your clients investment needs Segregated fund policies and mutual funds provide clients: Professional
November 2014 CONTENTS What is an RRSP? Contributing to your RRSP Investing and managing your RRSP Making withdrawals from your RRSP Summary ANSWERING YOUR RRSP QUESTIONS RRSPs are an important component
New Tax Regime May Upset Your Estate Planning November 3, 2014 No. 2014-49 If your estate plan includes creating a trust in your will or you are a trust beneficiary or an estate trustee, you may be affected
Reuter Benefits Group Plan Member Newsletter September 2009 Accessing Your Retirement Savings As you approach retirement, you will need to turn your Pension and RRSP, as well as any nonregistered savings,
2015 Personal income tax organizer Your Personal tax organizer includes a personal income tax checklist and tracking schedules. It is designed to make it easier to compile information for your tax preparer.
April 2014 CONTENTS Annual tax planning issues Income tax deferral Incorporating your farming business Long-term planning issues Taxation of capital gains Maximizing your capital gains exemption claims
BMO NESBITT BURNS Understanding Personal Holding Companies Many individuals hold investment portfolios in a personal holding company. It is important for these investors to understand the various tax implications
It is once again time to prepare your personal tax return. The 2013 return is due April 30, 2014, unless you or your spouse (if applicable) was self-employed in 2013, in which case the return is due June
The Professional s Option Professional Incorporation Many professionals now have the opportunity to run their business as a professional corporation 1. The ability to incorporate raises a number of planning
BUY-SELL AGREEMENTS CORPORATE-OWNED LIFE INSURANCE This issue of the Legal Business Report provides current information to the clients of Alpert Law Firm on important tax changes regarding the stop-loss
February 16, 2010 Canada-U.S. Estate Planning for the Cross-Border Executive Beth Webel (Toronto) Nadja Ibrahim (Calgary) Agenda Canadian death tax regime US estate tax regime US citizens moving to Canada
MUTUAL FUND TAX GUIDE For your 2013 Tax Return LESS = MORE THE LESS TAX YOU PAY, THE MORE YOUR INVESTMENTS WILL EARN February 2014 Did you know that taxes are probably the biggest expense you ll face over
R e t i r e m e n t I n c o m e F u n d s I n f o r m a t i o n B o o k l e t. This booklet is intended to address questions commonly asked about Retirement Income Funds (RIFs). The booklet is not intended
Professional Corporations Is One Right for You? Recent and planned corporate income tax rate reductions mean that now is a good time for professionals to consider incorporating their practices. The low
MITCHELL & PEARCE PROFESSIONAL CORPORATION Chartered Professional Accountants. Taxation of Students If you re a student, you want to stretch your budget as far as you can. When it comes to personal income
Bye-bye Bonus! Why small business owners may prefer dividends over a bonus Jamie Golombek Managing Director, Tax & Estate Planning, CI Wealth Advisory Services September 2015 Traditionally, many Canadian
Sample Exam Questions for Taxation of Trusts and Estates STEP Canada The following questions are offered to provide a sense of the type of questions you might expect on the exam. They do not reflect an
Theory Transamerica s Tax & Estate Planning Team & Transforming Needs into Meaningful Solutions ISSUE 1 FALL 2007 Practice Letter from the Editor by Dina Stigas Welcome to the premier issue of Theory &
PLANNING FOR A DISABLED BENEFICIARY REFERENCE GUIDE This Reference Guide is intended to provide information and guidance for those whose estate planning objectives include providing for an individual who
February 2016 CONTENTS Advantages of incorporation Advantages of an SBC and an FFC Other considerations Summary INCORPORATING YOUR FARM BUSINESS If you carry on a farm business, and have significant income,
Includes Ontario s July 14, 2014 budget and Quebec s June 4, 2014 budget www.pwc.com/ca/taxfacts Tax facts and figures Canada 2014 Canadian individual and corporate tax changes, tax rates, tax deadlines
un UARANTEE Sun GUARANTEED Investments nvestmen GUIDE ADVISOR WHAT S INSIDE Superflex/Income Master (Insurance GIC) Sun GIC Max non-redeemable (Trust GIC) SLF Trust GIC redeemable (Trust GIC) Life s brighter
2011 FEDERAL BUDGET By Jerry S. Rubin, B.E.S., B.Comm.(Hons), CMA, TEP, CFP Tax highlights from the 2011 federal budget Finance Minister James Flaherty tabled the 2011 federal budget on March 22, 2011.
March 2015 The Great Divide: Income splitting strategies can lower your family s taxes by Jamie Golombek While the new Family Tax Cut credit, which provides a form of income splitting, has been getting
LEAVING YOUR EMPLOYER SHOULD YOU COMMUTE YOUR PENSION PLAN? Mackenzie Tax & Estate Planning In past years when an individual changed employers, it was pretty much an accepted practice to leave their defined
TAX PLANNING FOR THE SALE OF YOUR BUSINESS REFERENCE GUIDE If you own a corporation that carries on an active business, you may be in a position at some point to consider the sale of your business. This
Explanatory Notes Relating to the Income Tax Act and Related Legislation Published by The Honourable Joe Oliver, P.C., M.P. Minister of Finance April 2015 Preface These explanatory notes describe proposed
Registered Retirement Income Funds The Income Tax Act states that a Registered Retirement Savings Plan (RRSP) matures by December 31 of the year in which the planholder (annuitant) reaches age 69. At the
Canadian Health Insurance tax Guide June 2012 Life s brighter under the sun Sun Life Assurance Company of Canada, 2012. Individuals may not deduct hospital and medical expenses from their income, but they
September 2012 The Corporate Investment Shelter Many successful business owners retire with more assets than they need to live well. With that realization, their focus can shift from providing retirement
NORTHEAST INVESTORS TRUST traditional IRA INVESTOR S KIT 125 High Street Boston, MA 02110 Telephone: 800-225-6704 Table of Contents NORTHEAST INVESTORS TRUST TRADITIONAL IRA DISCLOSURE STATEMENT...1 INTRODUCTION...1
Advisor Guide The BMO Insurance Insured Retirement Plan Table of Contents Introduction to The BMO Insurance Insured Retirement Plan 2 The Opportunity 3 The Solution 4 The BMO Insurance Insured Retirement
Year-end Tax Planning Guide - 30 The end of the financial year is fast approaching. In the lead up to 30 June, this newsletter covers some of the year-end tax planning matters for your consideration. BUSINESSES
T a x - F r e e S a v i n g s A c c o u n t s : A N e w F l e x i b l e, T a x - a d v a n t a g e d I n v e s t m e n t O p t i o n. Tax-Free Savings Accounts (TFSAs) are a new investment vehicle introduced
The Navigator RBC WEALTH MANAGEMENT SERVICES Charitable Donations of Securities Gifting shares instead of cash could enhance your tax benefit To encourage individuals to increase their charitable giving,
NORTHERN BLIZZARD RESOURCES INC. STOCK DIVIDEND PROGRAM Introduction This Stock Dividend Program (the "Program") provides eligible holders ("Shareholders") of common shares ("Common Shares") of Northern
Private Wealth Management Small Business Report October 19, 2010 April 17, 2007 Rethinking RRSPs for Business Owners: Why Taking a Salary May Not Make Sense by Jamie Golombek Abstract Traditionally, many
Income Splitting An excellent way to shift income between family members WHY INCOME SPLITTING? One of the easiest ways for families to reduce taxes is through properly structured income splitting. Income
Preparing for Retirement A Guide for Employees 010 Human Resources Contents Introduction... 3 Canada Pension Plan Retirement Benefits... 4 Old Age Security... 6 Employment Insurance Benefits at Retirement...
1. EMPLOYEE INFORMATION (Please print) COLLIERS INTERNATIONAL USA, LLC And Affiliated Employers 401(K) Plan DISTRIBUTION ELECTION Name: Address: Social Security No.: Birth Date: City: State: Zip: Termination
Plan Year 1999-2000 AUTOMATIC IRA ROLLOVER PAC FOR OUR COMPANY 401(K) PLAN Use this Automatic IRA Rollover Pac to... Indicate your distribution choice in the event that your employment with our company
TFSA Tax Free Savings Account Banking Insurance Planning Table of Contents WHAT is A TFsA? 1 Who can open a TFSA? Who Could Benefit from a TFSA? Non-resident holders Qualified investment in a TFSA contributions
The Lifetime Capital Gains Exemption Introduction This Tax Topic briefly reviews the rules contained in section 110.6 of the Income Tax Act (the "Act") concerning the lifetime capital gains exemption and
DISTRIBUTION REQUEST FORM Previously, there was little oversight regarding the withdrawal of money from 403(b) plans. The recent law changes now apply sanctions on Plans that do not carefully monitor and