Business owners deal with a unique set of challenges. One of these challenges includes succession planning. A succession plan is the process of the transfer of ownership, management and interest of a business. When should a business owner have a succession plan? A succession plan is required through the survival, growth and maturity stage of a business. All business owners, partners and shareholders should have a plan in place during these business stages.
We all want to reduce our income taxes and deducting interest payments on mortgages, loans, Lines of Credit or even credit cards can do that.
Canada Revenue Agency (CRA) has set criteria and rules that allow for the deduction of interest under certain situations. The key factor is the money you borrow must be used to generate income.
Since my 1980 start in the financial industry, I have had many clients retire only to realize a big disconnect between how they envisioned their retirement versus the assets that they have accumulated.
For most people, it is not just one mistake made over the years, but rather a multitude of poor financial decisions, many of which were implemented mid-life (from age 35 to 55).
The 15 most common reasons that financial health was negatively impacted:
Draft a Will
Dying “Intestate” creates legal and financial obstacles for your family, something which could easily be avoided with a Will.
By not having a Will the government will use a default selection, stating how assets are to be split between your spouse and children
With April being the month most of us are thinking of filing our tax returns the subject of Tax Credits should be of interest to many of you.
Tax Deductions and Tax Credits are two entirely different tools to reduce our income taxes. A tax deduction lowers a person’s tax liability by reducing their taxable income.
With February being the busiest month of RRSP season, I am often asked during annual reviews “what is the best way to get the money out of my RRSP?”
Canada Revenue Agency (CRA) allows RRSP holders to defer withdrawals until the end of the year they turn 71. At this point in time, the RRSP must be turned into a pension (either an Annuity or RRIF) or it will be redeemed in full on December 31st of that year.
Annually the Canada Revenue Agency (CRA) adjusts the contribution schedules for three of our most popular retirement and investment vehicles.
Increase in RRSP Contribution Room
The maximum allowable room has now been increased from $27,300 (in 2020) to $27,830 as of January 1st, 2021.