{"id":521,"date":"2022-04-22T10:00:39","date_gmt":"2022-04-22T10:00:39","guid":{"rendered":"https:\/\/advisor.wellington-altus.ca\/towerwealthadvisory\/?p=521"},"modified":"2025-02-19T22:25:14","modified_gmt":"2025-02-19T22:25:14","slug":"tax-season-is-here-consider-these-ways-to-be-tax-savvy","status":"publish","type":"post","link":"https:\/\/advisor.wellington-altus.ca\/towerwealthadvisory\/2022\/04\/22\/tax-season-is-here-consider-these-ways-to-be-tax-savvy\/","title":{"rendered":"Tax Season is Here: Consider These Ways To Be Tax Savvy"},"content":{"rendered":"<div class=\"et_pb_section et_pb_section_0 et_section_regular\">\n<div class=\"et_pb_row et_pb_row_0\">\n<div class=\"et_pb_column et_pb_column_4_4 et_pb_column_0 et_pb_css_mix_blend_mode_passthrough et-last-child\">\n<div class=\"et_pb_module et_pb_text et_pb_text_0 et_pb_text_align_left et_pb_bg_layout_light\">\n<div class=\"et_pb_text_inner\">\n<p>Spring\u00a0is\u00a0here\u00a0again\u00a0and\u00a0with\u00a0it\u00a0brings\u00a0personal\u00a0income\u00a0tax\u00a0season.\u00a0Many\u00a0of\u00a0us\u00a0feel\u00a0we\u00a0pay\u00a0too\u00a0much\u00a0tax\u00a0and\u00a0there\u00a0may\u00a0be\u00a0actions\u00a0we\u00a0can\u00a0take\u00a0to\u00a0help\u00a0minimize\u00a0these\u00a0liabilities.\u00a0This\u00a0may\u00a0be\u00a0especially\u00a0important\u00a0in\u00a0these\u00a0times\u00a0of\u00a0high\u00a0inflation.\u00a0Here\u00a0are\u00a0some\u00a0ideas:<\/p>\n<\/div>\n<\/div>\n<div class=\"et_pb_module et_pb_text et_pb_text_1 et_pb_text_align_left et_pb_bg_layout_light\">\n<div class=\"et_pb_text_inner\">\n<p><a href=\"https:\/\/towerwealth.com\/wp-content\/uploads\/2022\/03\/Time-The-Investors-Great-Ally.pdf\"><em><strong>Download PDF Version Here<\/strong><\/em><\/a><\/p>\n<\/div>\n<\/div>\n<div class=\"et_pb_module et_pb_text et_pb_text_2 et_pb_text_align_left et_pb_bg_layout_light\">\n<div class=\"et_pb_text_inner\">\n<p><strong>Consider professional tax support<\/strong>\u00a0\u2014 The support of tax professionals can help to ensure your tax planning takes into consideration current and proposed rules. This support can also help to prevent costly mistakes, such as incorrectly completing tax returns or neglecting to claim tax credits. It can be particularly beneficial if your situation is more complicated, such as where a divorce is involved or if you hold a significant portfolio of foreign assets. As we grow older, a professional advisor can provide continuity from year to year, which may become important if individuals experience health issues, incapacitation or the death of a spouse. Many accountants are well placed to assist with estate planning activities, including the transfer of assets upon death.<\/p>\n<\/div>\n<\/div>\n<div class=\"et_pb_module et_pb_text et_pb_text_3 et_pb_text_align_left et_pb_bg_layout_light\">\n<div class=\"et_pb_text_inner\">\n<p><b>Be<\/b><b>\u00a0<\/b><b>aware<\/b><b>\u00a0<\/b><b>of<\/b><b>\u00a0<\/b><b>the<\/b><b>\u00a0<\/b><b>evolving<\/b><b>\u00a0<\/b><b>tax<\/b><b>\u00a0<\/b><b>rules<\/b><b>\u00a0<\/b>\u2014\u00a0Make\u00a0sure\u00a0that\u00a0your\u00a0tax\u00a0planning\u00a0accounts\u00a0for\u00a0the\u00a0latest\u00a0tax\u00a0rules.\u00a0Remember\u00a0that\u00a0these\u00a0rules\u00a0continue\u00a0to\u00a0evolve.\u00a0Since\u00a0the\u00a0start\u00a0of\u00a02022,\u00a0the\u00a0Canada\u00a0Revenue\u00a0Agency\u00a0(CRA)\u00a0has\u00a0announced\u00a0some\u00a0of\u00a0the\u00a0following\u00a0changes\u00a0that\u00a0may\u00a0impact\u00a0certain\u00a0tax\u00a0positions.\u00a0While\u00a0these\u00a0changes\u00a0may\u00a0not\u00a0apply\u00a0to\u00a0personal\u00a0income\u00a0tax\u00a0season,\u00a0they\u00a0are\u00a0examples\u00a0of\u00a0the\u00a0evolving\u00a0landscape:<\/p>\n<\/div>\n<\/div>\n<div class=\"et_pb_module et_pb_text et_pb_text_4 et_pb_text_align_left et_pb_bg_layout_light\">\n<div class=\"et_pb_text_inner\">\n<ul>\n<li><b>Work-from-Home<\/b><b>\u00a0<\/b><b>Tax<\/b><b>\u00a0<\/b><b>Credit<\/b><b>\u00a0<\/b>\u2014\u00a0Those\u00a0who\u00a0worked\u00a0from\u00a0home\u00a0due to the pandemic are entitled to claim up to $500 of home expenses. As with the 2020 tax year, the CRA has issued a simplified Form T2200. However, the temporary flat-rate option remains available to taxpayers for both the 2021 and 2022 tax years.<\/li>\n<li><b>Automobile<\/b><b>\u00a0<\/b><b>Expenses<\/b><b>\u00a0<\/b>\u2014\u00a0For\u00a02022,\u00a0the\u00a0limit\u00a0on\u00a0the\u00a0deduction\u00a0of\u00a0tax-exempt\u00a0allowances\u00a0paid\u00a0to\u00a0employees\u00a0who\u00a0use\u00a0personal\u00a0vehicles\u00a0for\u00a0business\u00a0purposes\u00a0has\u00a0increased\u00a0by\u00a0two\u00a0cents,\u00a0to\u00a061cents\u00a0per\u00a0kilometre\u00a0(km)\u00a0for\u00a0the\u00a0first\u00a05,000\u00a0km\u00a0driven\u00a0and\u00a055\u00a0cents\u00a0thereafter\u00a0for\u00a0all\u00a0provinces.\u00a0Mileage\u00a0rates\u00a0were\u00a0last\u00a0raised\u00a0in\u00a02020.<\/li>\n<li><b>Expanded<\/b><b>\u00a0<\/b><b>Trust<\/b><b>\u00a0<\/b><b>Reporting<\/b><b>\u00a0<\/b>\u2014\u00a0Expanded\u00a0annual\u00a0reporting\u00a0requirements\u00a0for\u00a0trusts,\u00a0including\u00a0beneficial\u00a0ownership\u00a0information,\u00a0were\u00a0anticipated\u00a0for\u00a0the\u00a02021\u00a0tax\u00a0year\u00a0based\u00a0on\u00a0the\u00a0last\u00a0federal\u00a0budget.\u00a0In\u00a0the\u00a0first\u00a0quarter\u00a0of\u00a02022,\u00a0the\u00a0government\u00a0confirmed\u00a0that\u00a0this\u00a0would\u00a0no\u00a0longer\u00a0apply\u00a0for\u00a02021.\u00a0However,\u00a0draft\u00a0legislation\u00a0was introduced in February, which is expected to be passed and will apply to trusts with taxation years ending after Dec. 30, 2022.<\/li>\n<li><b>A Pending Luxury Tax\u00a0<\/b>\u00a0\u2014 The 2021 federal budget proposed a luxury tax expected to be introduced at the start of 2022 and retroactive to April 2021. In March, draft legislative proposals were released and the tax is now expected to come into effect on September 1, 2022.\u00b9 The proposed levy is either 10 percent of the value of the purchase above a certain threshold ($100,000 for new cars\/aircraft; $250,000 for boats) or 20 percent of the full value, whichever is less.<\/li>\n<li><b>Cryptocurrencies<\/b>\u00a0\u2014 The CRA continues to conduct audits on cryptocurrencies to crack down on tax non-compliance. Last year, the CRA won an order which allows it to collect personal and transactional information about the largest users from Canada\u2019s largest cryptocurrency exchange.\u00b2 Owning cryptocurrency itself is not taxable; however, be aware that there may be tax consequences for trading or exchanging cryptocurrency, including disposing of one cryptocurrency to obtain another.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<div class=\"et_pb_module et_pb_image et_pb_image_0\"><span class=\"et_pb_image_wrap \"><img decoding=\"async\" class=\"wp-image-230086\" title=\"1Tower Wealth Advisory image\" src=\"https:\/\/towerwealth.com\/wp-content\/uploads\/2022\/03\/1Tower-Wealth-Advisory-image-.png\" alt=\"\" width=\"272\" height=\"146\" \/><\/span><\/div>\n<div class=\"et_pb_module et_pb_text et_pb_text_5 et_pb_text_align_left et_pb_bg_layout_light\">\n<div class=\"et_pb_text_inner\">\n<p><b>Make<\/b><b>\u00a0<\/b><b>tax<\/b><b>\u00a0<\/b><b>planning<\/b><b>\u00a0<\/b><b>a<\/b><b>\u00a0<\/b><b>year-round<\/b><b>\u00a0<\/b><b>exercise<\/b><b>\u00a0<\/b>\u2014Year-round\u00a0tax\u00a0planning\u00a0can\u00a0start\u00a0with\u00a0maximizing tax-advantaged accounts\u00a0like\u00a0Tax-\u00a0Free\u00a0Savings\u00a0Accounts\u00a0(TFSAs)\u00a0or\u00a0Registered\u00a0Retirement\u00a0Savings\u00a0Plans\u00a0(RRSPs).\u00a0It\u00a0may\u00a0include\u00a0adjusting\u00a0asset\u00a0location\u00a0as\u00a0investment\u00a0returns,\u00a0i.e.,\u00a0bond\u00a0interest,\u00a0Canadian\u00a0and\u00a0foreign\u00a0stock\u00a0dividends,\u00a0capital\u00a0gains,\u00a0may\u00a0be\u00a0taxed\u00a0differently\u00a0depending\u00a0upon\u00a0where\u00a0they\u00a0are\u00a0held,\u00a0i.e.,\u00a0RRSP,\u00a0TFSA\u00a0or\u00a0non-registered\u00a0accounts.\u00a0When\u00a0it\u00a0comes\u00a0to\u00a0your\u00a0wealth\u00a0plan,\u00a0we\u2019re\u00a0here\u00a0to\u00a0discuss\u00a0tax-planning opportunities\u00a0to\u00a0help\u00a0you\u00a0keep\u00a0more\u00a0of\u00a0your\u00a0hard-earned\u00a0dollars.<\/p>\n<\/div>\n<\/div>\n<div class=\"et_pb_module et_pb_text et_pb_text_6 et_pb_text_align_left et_pb_bg_layout_light\">\n<div class=\"et_pb_text_inner\">\n<p><b>A<\/b><b>\u00a0<\/b><b>tax<\/b><b>\u00a0<\/b><b>refund?<\/b><b>\u00a0<\/b><b>Put<\/b><b>\u00a0<\/b><b>it<\/b><b>\u00a0<\/b><b>to<\/b><b>\u00a0<\/b><b>work!<\/b><b>\u00a0<\/b>\u2014\u00a0If\u00a0you\u00a0receive\u00a0a\u00a0tax\u00a0refund,\u00a0what\u00a0will\u00a0you\u00a0do\u00a0with\u00a0it?\u00a0Last\u00a0year,\u00a019\u00a0million\u00a0Canadians\u00a0received\u00a0a\u00a0refund\u00a0averaging\u00a0$1,801.3\u00a0Yet,\u00a0only\u00a018\u00a0percent\u00a0planned\u00a0on\u00a0investing\u00a0it\u00a0in\u00a0a TFSA,\u00a0RRSP\u00a0or\u00a0RESP.\u00a0Consider\u00a0the\u00a0potential\u00a0upside:\u00a0investing\u00a0this\u00a0amount\u00a0each\u00a0year\u00a0for\u00a0the\u00a0next\u00a025\u00a0years\u00a0at\u00a0an\u00a0annual\u00a0rate\u00a0of\u00a0return\u00a0of\u00a05.5\u00a0percent\u00a0would\u00a0yield\u00a0almost\u00a0$100,000\u00a0in\u00a0that\u00a0time.<\/p>\n<\/div>\n<\/div>\n<div class=\"et_pb_module et_pb_text et_pb_text_7 et_pb_text_align_left et_pb_bg_layout_light\">\n<div class=\"et_pb_text_inner\">\n<p>For\u00a0assistance\u00a0with\u00a0tax-related\u00a0investing\u00a0matters,\u00a0please\u00a0call\u00a0the\u00a0office.<\/p>\n<p>1.\u00a0<a href=\"http:\/\/www.canada.ca\/en\/department-finance\/news\/2022\/03\/government-releases-draft-legislative-proposals-to-\">www.canada.ca\/en\/department-finance\/news\/2022\/03\/government-releases-draft-legislative-proposals-to-<\/a>\u00a0implement-luxury-tax.html; 2.\u00a0<a href=\"https:\/\/www.forbes.com\/sites\/taxnotes\/2021\/04\/29\/cryptocurrency-tax-data-requests-\">www.forbes.com\/sites\/taxnotes\/2021\/04\/29\/cryptocurrency-tax-data-requests-<\/a>\u00a0its-easier-to-go-fishing-in-canada\/; 3. \u201cCanadians Are Stalling on their Taxes,\u201d J. Golombek, Financial Post,\u00a0<span class=\"Apple-converted-space\">\u00a0<\/span>\u00a0April 1, 2021; 4.\u00a0<a href=\"http:\/\/www.newswire.ca\/news-releases\/confusion-dread-and-fear-of-owing-money-fuel-tax-filing-\">www.newswire.ca\/news-releases\/confusion-dread-and-fear-of-owing-money-fuel-tax-filing-<\/a>\u00a0procrastination-in-canada-860977490.html; 5. Compounded annually at 5.5%, assuming no fees or taxes.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"et_pb_section et_pb_section_1 et_section_regular\">\n<div class=\"et_pb_row et_pb_row_1\">\n<div class=\"et_pb_column et_pb_column_4_4 et_pb_column_1 et_pb_css_mix_blend_mode_passthrough et-last-child\">\n<div class=\"et_pb_module et_pb_divider et_pb_divider_0 et_pb_divider_position_ et_pb_space\">\n<div class=\"et_pb_divider_internal\"><\/div>\n<\/div>\n<div class=\"et_pb_module et_pb_image et_pb_image_1\"><span class=\"et_pb_image_wrap \"><img fetchpriority=\"high\" decoding=\"async\" class=\"wp-image-229844\" title=\"Tower Wealth Advisory Blog Images-2\" src=\"https:\/\/towerwealth.com\/wp-content\/uploads\/2021\/12\/Tower-Wealth-Advisory-Blog-Images-2.png\" alt=\"\" width=\"1920\" height=\"1080\" \/><\/span><\/div>\n<div class=\"et_pb_module et_pb_text et_pb_text_8 et_pb_text_align_justified et_pb_bg_layout_light\">\n<div class=\"et_pb_text_inner\">\n<p class=\"p1\">The information contained herein has been provided for information purposes only. Graphs, charts and other numbers are used for illustrative purposes only and do not reflect future values or future performance of any investment. The information has been provided by J. Hirasawa &amp; Associates and is drawn from sources believed to be reliable. The information does not provide financial, legal, tax or investment advice. Particular investment, tax, or trading strategies should be evaluated relative to each individual\u2019s objectives and risk tolerance. This does not constitute a recommendation or solicitation to buy or sell securities of any kind. Market conditions may change which may impact the information contained in this document. Wellington-Altus Private Wealth Inc. (WAPW) and the authors do not guarantee the accuracy or completeness of the information contained herein, nor does WAPW, nor the authors, assume any liability for any loss that may result from the reliance by any person upon any such information or opinions. Before acting on any of the above, please contact me for individual financial advice based on your personal circumstances. All insurance products and services are offered by life licensed advisors of Wellington-Altus Insurance Inc. or other insurance companies separate from WAPW. WAPW is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. \u00a9 2022, Wellington-Altus Private Wealth Inc. ALL RIGHTS RESERVED. NO USE OR REPRODUCTION WITHOUT PERMISSION.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p style=\"font-size: 10px;line-height: normal;text-align: justify\">The information contained herein has been provided for information purposes only. Graphs, charts and other numbers are used for illustrative purposes only and do not reflect future values or future performance of any investment. The information has been provided by J. Hirasawa &amp; Associates and is drawn from sources believed to be reliable.<br \/>\nThe information does not provide financial, legal, tax or investment advice. Particular investment, tax, or trading strategies should be evaluated relative to each individual\u2019s objectives and risk tolerance. This does not constitute a recommendation or solicitation to buy or sell securities of any kind. Market conditions may change which may impact the information contained in this document. Wellington-Altus Private Wealth Inc. (WAPW) and the authors do not guarantee the accuracy or completeness of the information contained herein, nor does WAPW, nor the authors, assume any liability for any loss that may result from the reliance by any person upon any such information or opinions. Before acting on any of the above, please contact me for individual financial advice based on your personal circumstances. WAPW is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada.<br \/>\n\u00a9\ufe0f 2023, Wellington-Altus Private Wealth Inc. ALL RIGHTS RESERVED. NO USE OR REPRODUCTION WITHOUT PERMISSION<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Spring\u00a0is\u00a0here\u00a0again\u00a0and\u00a0with\u00a0it\u00a0brings\u00a0personal\u00a0income\u00a0tax\u00a0season.\u00a0Many\u00a0of\u00a0us\u00a0feel\u00a0we\u00a0pay\u00a0too\u00a0much\u00a0tax\u00a0and\u00a0there\u00a0may\u00a0be\u00a0actions\u00a0we\u00a0can\u00a0take\u00a0to\u00a0help\u00a0minimize\u00a0these\u00a0liabilities.\u00a0This\u00a0may\u00a0be\u00a0especially\u00a0important\u00a0in\u00a0these\u00a0times\u00a0of\u00a0high\u00a0inflation.\u00a0Here\u00a0are\u00a0some\u00a0ideas: Download PDF Version Here Consider professional tax support\u00a0\u2014 The support of tax professionals can help to ensure your tax planning takes into consideration current and proposed rules. This support can also help to prevent costly mistakes, such as incorrectly completing tax returns or neglecting to claim tax credits. It can be particularly beneficial if [&hellip;]<\/p>\n","protected":false},"author":68,"featured_media":3017,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_oasis_is_in_workflow":0,"_oasis_original":0,"_oasis_task_priority":"","_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[40],"tags":[72,71,25,74,73,70],"class_list":["post-521","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","tag-canada-revenue-agency","tag-cra","tag-tax","tag-tax-planning","tag-tax-refund","tag-tax-season"],"_links":{"self":[{"href":"https:\/\/advisor.wellington-altus.ca\/towerwealthadvisory\/wp-json\/wp\/v2\/posts\/521","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/advisor.wellington-altus.ca\/towerwealthadvisory\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/advisor.wellington-altus.ca\/towerwealthadvisory\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/towerwealthadvisory\/wp-json\/wp\/v2\/users\/68"}],"replies":[{"embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/towerwealthadvisory\/wp-json\/wp\/v2\/comments?post=521"}],"version-history":[{"count":3,"href":"https:\/\/advisor.wellington-altus.ca\/towerwealthadvisory\/wp-json\/wp\/v2\/posts\/521\/revisions"}],"predecessor-version":[{"id":1777,"href":"https:\/\/advisor.wellington-altus.ca\/towerwealthadvisory\/wp-json\/wp\/v2\/posts\/521\/revisions\/1777"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/towerwealthadvisory\/wp-json\/wp\/v2\/media\/3017"}],"wp:attachment":[{"href":"https:\/\/advisor.wellington-altus.ca\/towerwealthadvisory\/wp-json\/wp\/v2\/media?parent=521"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/towerwealthadvisory\/wp-json\/wp\/v2\/categories?post=521"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/towerwealthadvisory\/wp-json\/wp\/v2\/tags?post=521"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}