Omar’s Quick Take – Canadian Bank Stocks Under Pressure, Opportunity Once the Storm Passes
For anyone who may not have been paying attention, it may come as a shock to hear that Canadian bank stocks are collectively down more than -30%, as of writing, since their highs in February 2022 (using the BMO Equal Weight Banks ETF (ZEB) as a measure). Given the size and importance of our banking […]
Alternative Minimum Tax – When Does It Apply, How, And For Whom?
Download this article as a PDF. BACKGROUND The Alternative Minimum Tax (AMT)1 is a second, alternate tax liability calculation that Canadian individuals and trusts must consider annually in parallel with their normal tax liability. First introduced in 1986, AMT was implemented to promote and maintain fairness within Canada’s income tax regime. Simply, if a taxpayer’s AMT […]
FEBRUARY 2023 COMMENTARY
Capping off what felt like the worst equity market performance year we have seen since the Great Financial Crisis (GFC), 2022 was a year that we will likely not soon forget. A seemingly atypical year, with market participants having endured a rather unique situation of both equities and bonds falling in unison, an occurrence that has only happened less than a handful of times in the past century.
Reducing Household Taxes Through CPP Sharing
Download this article as a PDF. If you are collecting or have applied to collect your Canada Pension Plan retirement pension benefits (CPP) and have a spouse or common-law partner (CLP) in a lower tax bracket, you may want to consider sharing your CPP benefits with them. Let’s look at the “why, how, what and […]
Planning for Families Affected by Disabilities
Download this article as a PDF. More than one-fifth of Canadians over the age of 18 are living with disabilities,1 often with special needs which can entail significant costs. There is a vast network of supports, programs and tax rules designed to assist Canadians and ease the financial burden that can sometimes accompany a disability, but […]
Real Estate and U.S. Taxes: The Cost of Ownership
Download this article as a PDF. For many Canadians who are not otherwise U.S. persons (“Canadian”), owning property in the U.S. may represent an investment opportunity, a home away from home and an escape from the colder winter months. The complex nature of U.S. income tax rules related to property ownership and the financial consequences […]
Economic and Tax Highlights from the 2023 Federal Budget
Download this article as a PDF. On March 28, 2023, Canada’s Deputy Prime Minister and Minister of Finance, the Honourable Chrystia Freeland delivered the 2023 Federal Budget. Budget 2023 outlined plans to build a stronger, more sustainable and secure Canadian economy against a backdrop of slower global growth, elevated global interest rates, and high inflation. Together […]
Canada’s New Luxury Tax details – effective September 1, 2022
Aircraft, Vessels and Vehicles: The New Luxury Tax First announced in the 2021 Federal Budget, the new luxury tax will apply to sales, leases, and imports in Canada of certain luxury recreational aircraft, vessels, and vehicles delivered on or after September 1, 2022. What is subject to the tax? The sale, lease or import of […]
Introducing the First Home Savings Account (FHSA)
Tax-Free First Home Savings Account On August 9, 2022, the Department of Finance released for public comment the draft legislative proposals outlining the First Home Savings Account (“FHSA”). The FHSA was introduced in the 2022 Federal Budget to address the increasing difficulty Canadians are experiencing in buying a first home due to rising real estate […]
The Cascading Strategy: A Tax-Efficient Transfer of Generational Wealth
Parents, grandparents and other relatives who have achieved financial security often look for wealth transfer planning ideas to leave a legacy for younger relatives — but without incurring a substantial tax liability. The cascading strategy using permanent life insurance is one such planning idea and delivers an effective and tax-efficient way to transfer wealth.