SlideShare une entreprise Scribd logo
1  sur  26
Télécharger pour lire hors ligne
Year End Tax Tips



Jamie Golombek
Managing Director


November 2009
#1 - Tax loss selling




  Applied against capital gains
    – Including CG distributions from mutual funds
  Must be used against 2009 gains first
  Excess can be carried back / carried forward
                                 2009
  2006      2007      2008                   2010 + future years


Form T1A




                                                                   2
#1 - Tax loss selling - transfers



  Transfer to RRSP?

    - Loss denied

    - Crystallize first, wait 30 days to buy back

  Transfer to TFSA?

    - Loss denied

  Transfer to RESP?

    - OK, but if held for 30 days, “superficial loss”




                                                        3
#1 - Tax loss selling – “superficial loss”



    Superficial loss
      - Buy “identical property” within 30 calendar days
      - Who?
           You
           Spouse/partner
           Corporation controlled by you/spouse/partner
           Trust, if you or spouse is majority-interest beneficiary


    Transfer to parent / child – OK


    Switch funds (3rd party funds)
      - Corporate to trust version (vice versa)
      - Not identical properties


    Two index funds? – CRA says “identical”


                                                                       4
#2 - Home ownership and prospective home ownership




   Home Renovation Tax Credit


   First-Time Home Buyers’ Tax Credit


   Home Buyers’ Plan




                                                     5
#2 – Home Renovation Tax Credit (HRTC)


                      Expenditures over $1,000
                      Maximum of $10,000
                        – Credit worth 15% of $9,000 = $1,350
                      Per family (spouse/partner, minor kids)
                      From Jan 28, 2009 until Jan 31, 2010
                      Eligible expenses?
                        – Labour, professional services
                        – Building materials
                        – Equipment rentals
                        – Permits
                      Ineligible?
                        – Routine maintenance
                        – Furniture, drapery, appliances
                        – Interest expense

                                                                 6
#2 – Home Renovation Tax Credit (HRTC)


                      Air conditioners
                      Condo renos – specific/general
                      Docks
                      Driveways
                      Landscaping
                      Sauna
                      Solar panels
                      Swimming pools / hot tubs
                      Materials purchased before Feb 2010
                       qualify even if they are installed after
                       January 2010
                      Labour only qualifies if work is done
                       before February 2010, even if prepaid

                                                                  7
#2 - First-Time Home Buyers’ Tax Credit




   New $5,000 amount eligible for 15% credit
     – Value = $750


   “First-time home buyer”
     – Neither individual nor spouse/partner owned home in
       current or previous four calendar years


   One claim per family
     – Unused credit can be transferred to spouse/partner




                                                             8
#2 - Home Buyers’ Plan




   $25,000 can now be withdrawn from an RRSP, tax-free


   Must be paid back over 15 years to avoid annual income
    inclusion


   “First-time home buyer”
     – Neither individual nor spouse/partner owned home in
       current or previous four calendar years


   DEFER participation to January 2010 to delay
    repayment until 2012 (vs. 2011)



                                                             9
#3 – RRSP annuitants who turn 71 in 2009




 Convert to RRIF (or annuity) by December 31



 Final RRSP contribution must be made by December 31

   – No sixty day rule

   – Unless spousal RRSP with younger spouse/partner
#3 – RRSP annuitants who turn 71 in 2009




 Consider one-time “over-contribution”

   – Client (71) has $100,000 of earned income in 2009

   – Will create $18,000 of RRSP contribution room for 2010

   – Contribute $18,000 to RRSP in December 2009

   – Pay penalty of 1% or $180 for month of December

   – Deduct contribution in 2010 (or future year) against ANY source
     of income
#4 – Contribute to an RESP



 $50,000 per child

 No annual maximum

 Maximize Canada Education Savings Grants (CESGs)

   – 20% on first $2,500/annually = $500

   – Catch-up CESGs back to 1998

      • Max of $1,000 of CESGs per year

   – $7,200 per child maximum

 Child turned 15 in 2009 with no RESP?

   – Contribute at least $2,000 to RESP in 2009 to get CESG for 2009
     and make child eligible for 2010 and 2011 CESGs
#5 – Charitable donations




 Must be made by December 31st



 No capital gains tax on “in-kind” donations of publicly traded
  securities to charity



 Consider “donor advised funds” through public foundation
#6 – Contribute to a Registered Disability Savings Plan


 $200,000 lifetime limit

 Age 59 and under to open

 Age 49 and under to get
  government
  funds:
   – Canada Disability Savings Grants

      • Family income < $77,664 (2009)

         » 300% of first $500

         » 200% of next $1,000

      • Family income > $77,664

         » 100% of first $1,000

      • Lifetime max: $70,000
#6 - RDSPs (cont’d)




 Canada Disability Savings Bonds

   – Family income < $21,816 (2009)

      • $1,000 annually (no contributions required)

   – Family income > $21,816

      • Reduced pro-rate until eliminated at income > $38,832
       (2009)

   – Lifetime max: $20,000
#7 – Purchase business assets




 Claim a half-year’s depreciation even if asset bought on
  December 31st

 Accelerated tax depreciation for computer purchases

   – Can write off 100% of cost of computers in year acquired

   – No “half-year” rule

   – For purchases from January 28, 2009 through January 31, 2011
#8 – Spousal/Partner Loan at 1%




 Spouse or partner gifts/transfers funds

   - FULL attribution of income / gains to transferor


 Exceptions:

   – Pay FMV or prescribed rate loan



 Rate for Q4 2009 – 1%

   – Lowest ever!
#8 – Spousal Loan at 1% (Example)



 Jack loans Diane $200,000
 Investment earns 5% annually


                           Interest Expense – 1%




           Jack                                          Diane
                                $200,000
  Income          $2,000                       Income          $10,000
                                               Interest expense (2,000)
                                               Net income      $ 8,000


 Income splitting opportunity: $8,000
   Tax Savings (ONT): $8,000 X (46.41% - 21%) = $2,033 annually
#8 – Spousal Loan – Rate Reset?




 What if you have an existing loan at 3% or 4%?

   – Can you adjust rate on loan?

   – Can you refinance with new loan?
#9 – Pay investment expenses by Dec. 31




 Investment counseling fees (non-registered only)

 Professional accounting services

 Safety deposit box rental

 Interest expense
#9 – Make Debt Tax-Deductible



 “Singleton Shuffle”



                                              $300,000
      $300,000


                        $300,000   $300,000
#9 – Make Debt Tax-Deductible (cont’d)



 Lipson decision – Supreme Court (January 2009)
 General Anti-Avoidance Rule (GAAR)
 Use of attribution rules




                 Source: http://www.scc-csc.gc.ca/Details/d4-eng.asp
                 Credit: Philippe Landreville, Photographer
                 Supreme Court of Canada Collection
#10 – Plan NOT to Get a Refund!

in·tax·i·fi·ca·tion (in-täk-sə -fə -kā-shə n) noun
 the euphoria of getting a tax refund that lasts only until you realize
  it was your own money to begin with…
2009 Tip #10 – Plan NOT to Get a Refund! (cont’d)


 “Undue hardship” provision

 Too much tax withheld at source

 Due to:

   – RRSP contributions

   – Support payments

   – Childcare expenses

   – Charitable donations

 Form T1213
#10 – Avoiding Clawback of 2010 OAS



 Apply for 2010 reduction of clawback at source – OAS

 Form T1213 OAS
Questions
  & Answers

Contenu connexe

Tendances

Summary Of The American Recovery And Reinvestment Act Of 2009
Summary Of The American Recovery And Reinvestment Act Of 2009Summary Of The American Recovery And Reinvestment Act Of 2009
Summary Of The American Recovery And Reinvestment Act Of 2009Charles Knox
 
Landlords &amp; tenants managing through distress
Landlords &amp; tenants   managing through distressLandlords &amp; tenants   managing through distress
Landlords &amp; tenants managing through distressWithum
 
$8000 Fthb Tax Credit
$8000 Fthb Tax Credit$8000 Fthb Tax Credit
$8000 Fthb Tax Creditguest7536ce
 
2009 Tax Credit Slideshow
2009 Tax Credit Slideshow2009 Tax Credit Slideshow
2009 Tax Credit Slideshowshigashi
 
Tax owning a second home - h&r block
Tax   owning a second home - h&r blockTax   owning a second home - h&r block
Tax owning a second home - h&r blockbalak50
 
Jeffrey Burr Cpe Presentation 6 10 10
Jeffrey Burr Cpe Presentation 6 10 10Jeffrey Burr Cpe Presentation 6 10 10
Jeffrey Burr Cpe Presentation 6 10 10jasbow75
 
COVID-19 Tax and Business Update 4.3.20
COVID-19 Tax and Business Update 4.3.20COVID-19 Tax and Business Update 4.3.20
COVID-19 Tax and Business Update 4.3.20Withum
 
2009 First Time Home Buyers Tax Credit
2009 First Time Home Buyers Tax Credit2009 First Time Home Buyers Tax Credit
2009 First Time Home Buyers Tax Creditgmcintosh
 
Foreclosure presentation3
Foreclosure presentation3Foreclosure presentation3
Foreclosure presentation3Brendenb
 
Estate Planner May June 2011
Estate Planner May June 2011Estate Planner May June 2011
Estate Planner May June 2011mcarruthers
 
First Time Home Buyers Tax Credit $8000
First Time Home Buyers Tax Credit $8000First Time Home Buyers Tax Credit $8000
First Time Home Buyers Tax Credit $8000SusanWainfor
 
Estate Planning Workshop
Estate Planning WorkshopEstate Planning Workshop
Estate Planning Workshopandyhoang
 
First Time Home Purchase
First Time Home PurchaseFirst Time Home Purchase
First Time Home PurchaseGreg Younger
 

Tendances (18)

Summary Of The American Recovery And Reinvestment Act Of 2009
Summary Of The American Recovery And Reinvestment Act Of 2009Summary Of The American Recovery And Reinvestment Act Of 2009
Summary Of The American Recovery And Reinvestment Act Of 2009
 
Landlords &amp; tenants managing through distress
Landlords &amp; tenants   managing through distressLandlords &amp; tenants   managing through distress
Landlords &amp; tenants managing through distress
 
$8000 Fthb Tax Credit
$8000 Fthb Tax Credit$8000 Fthb Tax Credit
$8000 Fthb Tax Credit
 
2009 Tax Credit Slideshow
2009 Tax Credit Slideshow2009 Tax Credit Slideshow
2009 Tax Credit Slideshow
 
Tax owning a second home - h&r block
Tax   owning a second home - h&r blockTax   owning a second home - h&r block
Tax owning a second home - h&r block
 
Jeffrey Burr Cpe Presentation 6 10 10
Jeffrey Burr Cpe Presentation 6 10 10Jeffrey Burr Cpe Presentation 6 10 10
Jeffrey Burr Cpe Presentation 6 10 10
 
COVID-19 Tax and Business Update 4.3.20
COVID-19 Tax and Business Update 4.3.20COVID-19 Tax and Business Update 4.3.20
COVID-19 Tax and Business Update 4.3.20
 
Property Investing - unlocking your equity
Property Investing - unlocking your equityProperty Investing - unlocking your equity
Property Investing - unlocking your equity
 
2009 First Time Home Buyers Tax Credit
2009 First Time Home Buyers Tax Credit2009 First Time Home Buyers Tax Credit
2009 First Time Home Buyers Tax Credit
 
Applied 40S May 14, 2009
Applied 40S May 14, 2009Applied 40S May 14, 2009
Applied 40S May 14, 2009
 
Foreclosure presentation3
Foreclosure presentation3Foreclosure presentation3
Foreclosure presentation3
 
Inheritance Tax presentation May 2012
Inheritance Tax presentation May 2012Inheritance Tax presentation May 2012
Inheritance Tax presentation May 2012
 
Estate Planner May June 2011
Estate Planner May June 2011Estate Planner May June 2011
Estate Planner May June 2011
 
Estate Planning 101: What Every CPA Should Know
Estate Planning 101: What Every CPA Should KnowEstate Planning 101: What Every CPA Should Know
Estate Planning 101: What Every CPA Should Know
 
First Time Home Buyers Tax Credit $8000
First Time Home Buyers Tax Credit $8000First Time Home Buyers Tax Credit $8000
First Time Home Buyers Tax Credit $8000
 
Economics of Home Buying
Economics of Home BuyingEconomics of Home Buying
Economics of Home Buying
 
Estate Planning Workshop
Estate Planning WorkshopEstate Planning Workshop
Estate Planning Workshop
 
First Time Home Purchase
First Time Home PurchaseFirst Time Home Purchase
First Time Home Purchase
 

En vedette

May 2009 - Larry Balback Insurance Strategies for Estate Planning - 3 Case St...
May 2009 - Larry Balback Insurance Strategies for Estate Planning - 3 Case St...May 2009 - Larry Balback Insurance Strategies for Estate Planning - 3 Case St...
May 2009 - Larry Balback Insurance Strategies for Estate Planning - 3 Case St...Estate Planning Council of Abbotsford
 
Christopher Richardson - Public vs. Private Foundations & Charitable Gift Pla...
Christopher Richardson - Public vs. Private Foundations & Charitable Gift Pla...Christopher Richardson - Public vs. Private Foundations & Charitable Gift Pla...
Christopher Richardson - Public vs. Private Foundations & Charitable Gift Pla...Estate Planning Council of Abbotsford
 
Dave Currie - Perfect Storm ­When Stress from Work Hits Stress at Home
Dave Currie - Perfect Storm ­When Stress from Work Hits Stress at HomeDave Currie - Perfect Storm ­When Stress from Work Hits Stress at Home
Dave Currie - Perfect Storm ­When Stress from Work Hits Stress at HomeEstate Planning Council of Abbotsford
 
Carmen Theriault - Trustees - Directors of Private Companies: Which Hat Rules?
Carmen Theriault - Trustees - Directors of Private Companies: Which Hat Rules?Carmen Theriault - Trustees - Directors of Private Companies: Which Hat Rules?
Carmen Theriault - Trustees - Directors of Private Companies: Which Hat Rules?Estate Planning Council of Abbotsford
 
Delving Deeper Into What Is Covered Under Family Law
Delving Deeper Into What Is Covered Under Family LawDelving Deeper Into What Is Covered Under Family Law
Delving Deeper Into What Is Covered Under Family Lawtessasy043
 
Economic Update, April 2015 - Presented by Bryan Yu, Senior Economist
Economic Update, April 2015 - Presented by Bryan Yu, Senior EconomistEconomic Update, April 2015 - Presented by Bryan Yu, Senior Economist
Economic Update, April 2015 - Presented by Bryan Yu, Senior EconomistEstate Planning Council of Abbotsford
 

En vedette (20)

Chris Ireland - Estate & Accounting
Chris Ireland - Estate & AccountingChris Ireland - Estate & Accounting
Chris Ireland - Estate & Accounting
 
May 2009 - Larry Balback Insurance Strategies for Estate Planning - 3 Case St...
May 2009 - Larry Balback Insurance Strategies for Estate Planning - 3 Case St...May 2009 - Larry Balback Insurance Strategies for Estate Planning - 3 Case St...
May 2009 - Larry Balback Insurance Strategies for Estate Planning - 3 Case St...
 
Jane Shanks - Writing the Tax Man Out of Your Will
Jane Shanks - Writing the Tax Man Out of Your WillJane Shanks - Writing the Tax Man Out of Your Will
Jane Shanks - Writing the Tax Man Out of Your Will
 
Christopher Richardson - Public vs. Private Foundations & Charitable Gift Pla...
Christopher Richardson - Public vs. Private Foundations & Charitable Gift Pla...Christopher Richardson - Public vs. Private Foundations & Charitable Gift Pla...
Christopher Richardson - Public vs. Private Foundations & Charitable Gift Pla...
 
Michele Isaak - Insolvent Estates
Michele Isaak - Insolvent EstatesMichele Isaak - Insolvent Estates
Michele Isaak - Insolvent Estates
 
Planning for Incapacity
Planning for IncapacityPlanning for Incapacity
Planning for Incapacity
 
Jane Purdie - Elder Law
 Jane Purdie - Elder Law Jane Purdie - Elder Law
Jane Purdie - Elder Law
 
Dave Currie - Perfect Storm ­When Stress from Work Hits Stress at Home
Dave Currie - Perfect Storm ­When Stress from Work Hits Stress at HomeDave Currie - Perfect Storm ­When Stress from Work Hits Stress at Home
Dave Currie - Perfect Storm ­When Stress from Work Hits Stress at Home
 
AGM and Steven Araki - Debunking Myths of HST
AGM and Steven Araki - Debunking Myths of HSTAGM and Steven Araki - Debunking Myths of HST
AGM and Steven Araki - Debunking Myths of HST
 
Dean Mary Anne Bobinski - Ethics and Reproductive Law
Dean Mary Anne Bobinski - Ethics and Reproductive LawDean Mary Anne Bobinski - Ethics and Reproductive Law
Dean Mary Anne Bobinski - Ethics and Reproductive Law
 
Carmen Theriault - Trustees - Directors of Private Companies: Which Hat Rules?
Carmen Theriault - Trustees - Directors of Private Companies: Which Hat Rules?Carmen Theriault - Trustees - Directors of Private Companies: Which Hat Rules?
Carmen Theriault - Trustees - Directors of Private Companies: Which Hat Rules?
 
Delving Deeper Into What Is Covered Under Family Law
Delving Deeper Into What Is Covered Under Family LawDelving Deeper Into What Is Covered Under Family Law
Delving Deeper Into What Is Covered Under Family Law
 
STCL EPCA - John Blackmer - Solus Trust
STCL EPCA - John Blackmer - Solus TrustSTCL EPCA - John Blackmer - Solus Trust
STCL EPCA - John Blackmer - Solus Trust
 
Economic Update, April 2015 - Presented by Bryan Yu, Senior Economist
Economic Update, April 2015 - Presented by Bryan Yu, Senior EconomistEconomic Update, April 2015 - Presented by Bryan Yu, Senior Economist
Economic Update, April 2015 - Presented by Bryan Yu, Senior Economist
 
Business Succession Philanthropy May 2015
Business Succession Philanthropy May 2015Business Succession Philanthropy May 2015
Business Succession Philanthropy May 2015
 
Tim Duholke - The Estate Freeze Process
Tim Duholke - The Estate Freeze ProcessTim Duholke - The Estate Freeze Process
Tim Duholke - The Estate Freeze Process
 
Breaking up
Breaking upBreaking up
Breaking up
 
Tips and Traps of Beneficiary Designations
Tips and Traps of Beneficiary DesignationsTips and Traps of Beneficiary Designations
Tips and Traps of Beneficiary Designations
 
Investing in the U.S.
Investing in the U.S.Investing in the U.S.
Investing in the U.S.
 
2013 06-19 us tax presentation
2013 06-19 us tax presentation2013 06-19 us tax presentation
2013 06-19 us tax presentation
 

Similaire à Jamie Golombek CIBC - Client Seminar Year End Tax Planning

2009 Home Buyer Credit Pamphlet
2009 Home Buyer Credit Pamphlet2009 Home Buyer Credit Pamphlet
2009 Home Buyer Credit PamphletTom Cryer
 
Year End Tax Planning Tips Individuals 2009
Year End Tax Planning Tips Individuals 2009Year End Tax Planning Tips Individuals 2009
Year End Tax Planning Tips Individuals 2009Stambaugh Ness, PC
 
IPI TaX Depreciation Money
IPI TaX Depreciation MoneyIPI TaX Depreciation Money
IPI TaX Depreciation MoneyNeil Brown
 
Essay About You Decide Acct 553
Essay About You Decide Acct 553Essay About You Decide Acct 553
Essay About You Decide Acct 553Serena Brown
 
[On-Demand Webinar] Tips to Successfully Invest in Property | Tips to Save Ta...
[On-Demand Webinar] Tips to Successfully Invest in Property | Tips to Save Ta...[On-Demand Webinar] Tips to Successfully Invest in Property | Tips to Save Ta...
[On-Demand Webinar] Tips to Successfully Invest in Property | Tips to Save Ta...Emily John
 
Business Tax Strategies for 2011 and 2012
Business Tax Strategies for 2011 and 2012 Business Tax Strategies for 2011 and 2012
Business Tax Strategies for 2011 and 2012 Sullivan and Gannon, LLC
 
Keeping It In The Family Resnick Associates
Keeping It In The Family Resnick AssociatesKeeping It In The Family Resnick Associates
Keeping It In The Family Resnick AssociatesMartin Demarest
 
2013 Gift & Estate Planning Opportunities
2013 Gift & Estate Planning Opportunities2013 Gift & Estate Planning Opportunities
2013 Gift & Estate Planning OpportunitiesAmy Joyce, CPA, J.D.
 
Estate Tax Repeal Slides
Estate Tax Repeal SlidesEstate Tax Repeal Slides
Estate Tax Repeal Slideskirkpatj
 
2011 Estate and Tennessee Update
2011 Estate and Tennessee Update2011 Estate and Tennessee Update
2011 Estate and Tennessee UpdateDecosimoCPAs
 
H&R Block Last Minute Webinar Presentation
H&R Block Last Minute Webinar PresentationH&R Block Last Minute Webinar Presentation
H&R Block Last Minute Webinar Presentationlmutert
 
TCJA Personal and Professional Implications Seminar-04-18
TCJA Personal and Professional Implications Seminar-04-18TCJA Personal and Professional Implications Seminar-04-18
TCJA Personal and Professional Implications Seminar-04-18Barbara O'Neill
 
The Income Tax Planning Landscape: 2011
The Income Tax Planning Landscape: 2011The Income Tax Planning Landscape: 2011
The Income Tax Planning Landscape: 2011Jeff Green
 
You Decide Week 3
You Decide Week 3You Decide Week 3
You Decide Week 3April Davis
 
Tax Credit explained
Tax Credit explainedTax Credit explained
Tax Credit explainedguest352f07
 
12 Often Overlooked Tax Deductions
12 Often Overlooked Tax Deductions12 Often Overlooked Tax Deductions
12 Often Overlooked Tax DeductionsFocusedBookkeeping
 
Current Current Issues in Personal Finance-Income Taxes and Identity Theft-04-18
Current Current Issues in Personal Finance-Income Taxes and Identity Theft-04-18Current Current Issues in Personal Finance-Income Taxes and Identity Theft-04-18
Current Current Issues in Personal Finance-Income Taxes and Identity Theft-04-18Barbara O'Neill
 
First Time Home Buyer Tax Credit Explained
First Time Home Buyer Tax Credit  ExplainedFirst Time Home Buyer Tax Credit  Explained
First Time Home Buyer Tax Credit ExplainedChristineDHudena33
 
Tax changes 2021
Tax changes 2021Tax changes 2021
Tax changes 2021AllenLenth
 

Similaire à Jamie Golombek CIBC - Client Seminar Year End Tax Planning (20)

2009 Home Buyer Credit Pamphlet
2009 Home Buyer Credit Pamphlet2009 Home Buyer Credit Pamphlet
2009 Home Buyer Credit Pamphlet
 
Year End Tax Planning Tips Individuals 2009
Year End Tax Planning Tips Individuals 2009Year End Tax Planning Tips Individuals 2009
Year End Tax Planning Tips Individuals 2009
 
IPI TaX Depreciation Money
IPI TaX Depreciation MoneyIPI TaX Depreciation Money
IPI TaX Depreciation Money
 
Essay About You Decide Acct 553
Essay About You Decide Acct 553Essay About You Decide Acct 553
Essay About You Decide Acct 553
 
[On-Demand Webinar] Tips to Successfully Invest in Property | Tips to Save Ta...
[On-Demand Webinar] Tips to Successfully Invest in Property | Tips to Save Ta...[On-Demand Webinar] Tips to Successfully Invest in Property | Tips to Save Ta...
[On-Demand Webinar] Tips to Successfully Invest in Property | Tips to Save Ta...
 
Business Tax Strategies for 2011 and 2012
Business Tax Strategies for 2011 and 2012 Business Tax Strategies for 2011 and 2012
Business Tax Strategies for 2011 and 2012
 
Keeping It In The Family Resnick Associates
Keeping It In The Family Resnick AssociatesKeeping It In The Family Resnick Associates
Keeping It In The Family Resnick Associates
 
2013 Gift & Estate Planning Opportunities
2013 Gift & Estate Planning Opportunities2013 Gift & Estate Planning Opportunities
2013 Gift & Estate Planning Opportunities
 
Government Affairs Homeb Tax Cred Qa
Government Affairs Homeb Tax Cred QaGovernment Affairs Homeb Tax Cred Qa
Government Affairs Homeb Tax Cred Qa
 
Estate Tax Repeal Slides
Estate Tax Repeal SlidesEstate Tax Repeal Slides
Estate Tax Repeal Slides
 
2011 Estate and Tennessee Update
2011 Estate and Tennessee Update2011 Estate and Tennessee Update
2011 Estate and Tennessee Update
 
H&R Block Last Minute Webinar Presentation
H&R Block Last Minute Webinar PresentationH&R Block Last Minute Webinar Presentation
H&R Block Last Minute Webinar Presentation
 
TCJA Personal and Professional Implications Seminar-04-18
TCJA Personal and Professional Implications Seminar-04-18TCJA Personal and Professional Implications Seminar-04-18
TCJA Personal and Professional Implications Seminar-04-18
 
The Income Tax Planning Landscape: 2011
The Income Tax Planning Landscape: 2011The Income Tax Planning Landscape: 2011
The Income Tax Planning Landscape: 2011
 
You Decide Week 3
You Decide Week 3You Decide Week 3
You Decide Week 3
 
Tax Credit explained
Tax Credit explainedTax Credit explained
Tax Credit explained
 
12 Often Overlooked Tax Deductions
12 Often Overlooked Tax Deductions12 Often Overlooked Tax Deductions
12 Often Overlooked Tax Deductions
 
Current Current Issues in Personal Finance-Income Taxes and Identity Theft-04-18
Current Current Issues in Personal Finance-Income Taxes and Identity Theft-04-18Current Current Issues in Personal Finance-Income Taxes and Identity Theft-04-18
Current Current Issues in Personal Finance-Income Taxes and Identity Theft-04-18
 
First Time Home Buyer Tax Credit Explained
First Time Home Buyer Tax Credit  ExplainedFirst Time Home Buyer Tax Credit  Explained
First Time Home Buyer Tax Credit Explained
 
Tax changes 2021
Tax changes 2021Tax changes 2021
Tax changes 2021
 

Plus de Estate Planning Council of Abbotsford

Best Laid Plans Awry: Estate Planning problems on Incapacity and Death
Best Laid Plans Awry: Estate Planning problems on Incapacity and DeathBest Laid Plans Awry: Estate Planning problems on Incapacity and Death
Best Laid Plans Awry: Estate Planning problems on Incapacity and DeathEstate Planning Council of Abbotsford
 
Trust Companies as Agent for Executors, Power of Attorneys & Trustees
Trust Companies as Agent for Executors, Power of Attorneys & TrusteesTrust Companies as Agent for Executors, Power of Attorneys & Trustees
Trust Companies as Agent for Executors, Power of Attorneys & TrusteesEstate Planning Council of Abbotsford
 
Lifetime Planning Tools - Agreements, Directives and Powers of Attorney
Lifetime Planning Tools - Agreements, Directives and Powers of AttorneyLifetime Planning Tools - Agreements, Directives and Powers of Attorney
Lifetime Planning Tools - Agreements, Directives and Powers of AttorneyEstate Planning Council of Abbotsford
 
Tax planning for business owners june 2014 Sean Rheubottom - United Financial
Tax planning for business owners june 2014 Sean Rheubottom - United FinancialTax planning for business owners june 2014 Sean Rheubottom - United Financial
Tax planning for business owners june 2014 Sean Rheubottom - United FinancialEstate Planning Council of Abbotsford
 

Plus de Estate Planning Council of Abbotsford (20)

Best Laid Plans Awry: Estate Planning problems on Incapacity and Death
Best Laid Plans Awry: Estate Planning problems on Incapacity and DeathBest Laid Plans Awry: Estate Planning problems on Incapacity and Death
Best Laid Plans Awry: Estate Planning problems on Incapacity and Death
 
Changing Face of Philanthropy
Changing Face of PhilanthropyChanging Face of Philanthropy
Changing Face of Philanthropy
 
Discussion on Assisted Dying Legislation
Discussion on Assisted Dying LegislationDiscussion on Assisted Dying Legislation
Discussion on Assisted Dying Legislation
 
Insurance and Tax Changes
Insurance and Tax ChangesInsurance and Tax Changes
Insurance and Tax Changes
 
Mediation for Estate Planning and Estates
Mediation for Estate Planning and EstatesMediation for Estate Planning and Estates
Mediation for Estate Planning and Estates
 
Taxation of Testamentary Trusts, October 19, 2016
Taxation of Testamentary Trusts,  October 19, 2016Taxation of Testamentary Trusts,  October 19, 2016
Taxation of Testamentary Trusts, October 19, 2016
 
Role of the Public Guardian and Trustee
Role of the Public Guardian and TrusteeRole of the Public Guardian and Trustee
Role of the Public Guardian and Trustee
 
Trust Companies as Agent for Executors, Power of Attorneys & Trustees
Trust Companies as Agent for Executors, Power of Attorneys & TrusteesTrust Companies as Agent for Executors, Power of Attorneys & Trustees
Trust Companies as Agent for Executors, Power of Attorneys & Trustees
 
Lifetime Planning Tools - Agreements, Directives and Powers of Attorney
Lifetime Planning Tools - Agreements, Directives and Powers of AttorneyLifetime Planning Tools - Agreements, Directives and Powers of Attorney
Lifetime Planning Tools - Agreements, Directives and Powers of Attorney
 
Wills Estates and Succession Act
Wills Estates and Succession ActWills Estates and Succession Act
Wills Estates and Succession Act
 
Changes to Taxation of Trusts
Changes to Taxation of TrustsChanges to Taxation of Trusts
Changes to Taxation of Trusts
 
How to Cut Someone Out of Your Will
How to Cut Someone Out of Your WillHow to Cut Someone Out of Your Will
How to Cut Someone Out of Your Will
 
Corporate Insurance and Tax planning - Cindy David - June 18, 2015
Corporate Insurance and Tax planning - Cindy David - June 18, 2015Corporate Insurance and Tax planning - Cindy David - June 18, 2015
Corporate Insurance and Tax planning - Cindy David - June 18, 2015
 
Wesa Changes - including probate applications and rectifications
Wesa Changes - including probate applications and rectificationsWesa Changes - including probate applications and rectifications
Wesa Changes - including probate applications and rectifications
 
Locating Estate Assets & Beneficiaries
Locating Estate Assets & BeneficiariesLocating Estate Assets & Beneficiaries
Locating Estate Assets & Beneficiaries
 
Tax planning for business owners june 2014 Sean Rheubottom - United Financial
Tax planning for business owners june 2014 Sean Rheubottom - United FinancialTax planning for business owners june 2014 Sean Rheubottom - United Financial
Tax planning for business owners june 2014 Sean Rheubottom - United Financial
 
CHIP Mortgage Strategies
CHIP Mortgage StrategiesCHIP Mortgage Strategies
CHIP Mortgage Strategies
 
Creditor Proofing the Estate - Jane Milton, Q.C.
Creditor Proofing the Estate - Jane Milton, Q.C.Creditor Proofing the Estate - Jane Milton, Q.C.
Creditor Proofing the Estate - Jane Milton, Q.C.
 
Proposed Changes to the Taxation of Testamentary Trusts
Proposed Changes to the Taxation of Testamentary TrustsProposed Changes to the Taxation of Testamentary Trusts
Proposed Changes to the Taxation of Testamentary Trusts
 
US Estate Tax for Canadians and Other Cross Border Tax Issues
US Estate Tax for Canadians and Other Cross Border Tax IssuesUS Estate Tax for Canadians and Other Cross Border Tax Issues
US Estate Tax for Canadians and Other Cross Border Tax Issues
 

Jamie Golombek CIBC - Client Seminar Year End Tax Planning

  • 1. Year End Tax Tips Jamie Golombek Managing Director November 2009
  • 2. #1 - Tax loss selling  Applied against capital gains – Including CG distributions from mutual funds  Must be used against 2009 gains first  Excess can be carried back / carried forward 2009 2006 2007 2008 2010 + future years Form T1A 2
  • 3. #1 - Tax loss selling - transfers  Transfer to RRSP? - Loss denied - Crystallize first, wait 30 days to buy back  Transfer to TFSA? - Loss denied  Transfer to RESP? - OK, but if held for 30 days, “superficial loss” 3
  • 4. #1 - Tax loss selling – “superficial loss”  Superficial loss - Buy “identical property” within 30 calendar days - Who?  You  Spouse/partner  Corporation controlled by you/spouse/partner  Trust, if you or spouse is majority-interest beneficiary  Transfer to parent / child – OK  Switch funds (3rd party funds) - Corporate to trust version (vice versa) - Not identical properties  Two index funds? – CRA says “identical” 4
  • 5. #2 - Home ownership and prospective home ownership  Home Renovation Tax Credit  First-Time Home Buyers’ Tax Credit  Home Buyers’ Plan 5
  • 6. #2 – Home Renovation Tax Credit (HRTC)  Expenditures over $1,000  Maximum of $10,000 – Credit worth 15% of $9,000 = $1,350  Per family (spouse/partner, minor kids)  From Jan 28, 2009 until Jan 31, 2010  Eligible expenses? – Labour, professional services – Building materials – Equipment rentals – Permits  Ineligible? – Routine maintenance – Furniture, drapery, appliances – Interest expense 6
  • 7. #2 – Home Renovation Tax Credit (HRTC)  Air conditioners  Condo renos – specific/general  Docks  Driveways  Landscaping  Sauna  Solar panels  Swimming pools / hot tubs  Materials purchased before Feb 2010 qualify even if they are installed after January 2010  Labour only qualifies if work is done before February 2010, even if prepaid 7
  • 8. #2 - First-Time Home Buyers’ Tax Credit  New $5,000 amount eligible for 15% credit – Value = $750  “First-time home buyer” – Neither individual nor spouse/partner owned home in current or previous four calendar years  One claim per family – Unused credit can be transferred to spouse/partner 8
  • 9. #2 - Home Buyers’ Plan  $25,000 can now be withdrawn from an RRSP, tax-free  Must be paid back over 15 years to avoid annual income inclusion  “First-time home buyer” – Neither individual nor spouse/partner owned home in current or previous four calendar years  DEFER participation to January 2010 to delay repayment until 2012 (vs. 2011) 9
  • 10. #3 – RRSP annuitants who turn 71 in 2009  Convert to RRIF (or annuity) by December 31  Final RRSP contribution must be made by December 31 – No sixty day rule – Unless spousal RRSP with younger spouse/partner
  • 11. #3 – RRSP annuitants who turn 71 in 2009  Consider one-time “over-contribution” – Client (71) has $100,000 of earned income in 2009 – Will create $18,000 of RRSP contribution room for 2010 – Contribute $18,000 to RRSP in December 2009 – Pay penalty of 1% or $180 for month of December – Deduct contribution in 2010 (or future year) against ANY source of income
  • 12. #4 – Contribute to an RESP  $50,000 per child  No annual maximum  Maximize Canada Education Savings Grants (CESGs) – 20% on first $2,500/annually = $500 – Catch-up CESGs back to 1998 • Max of $1,000 of CESGs per year – $7,200 per child maximum  Child turned 15 in 2009 with no RESP? – Contribute at least $2,000 to RESP in 2009 to get CESG for 2009 and make child eligible for 2010 and 2011 CESGs
  • 13. #5 – Charitable donations  Must be made by December 31st  No capital gains tax on “in-kind” donations of publicly traded securities to charity  Consider “donor advised funds” through public foundation
  • 14. #6 – Contribute to a Registered Disability Savings Plan  $200,000 lifetime limit  Age 59 and under to open  Age 49 and under to get government funds: – Canada Disability Savings Grants • Family income < $77,664 (2009) » 300% of first $500 » 200% of next $1,000 • Family income > $77,664 » 100% of first $1,000 • Lifetime max: $70,000
  • 15. #6 - RDSPs (cont’d)  Canada Disability Savings Bonds – Family income < $21,816 (2009) • $1,000 annually (no contributions required) – Family income > $21,816 • Reduced pro-rate until eliminated at income > $38,832 (2009) – Lifetime max: $20,000
  • 16. #7 – Purchase business assets  Claim a half-year’s depreciation even if asset bought on December 31st  Accelerated tax depreciation for computer purchases – Can write off 100% of cost of computers in year acquired – No “half-year” rule – For purchases from January 28, 2009 through January 31, 2011
  • 17. #8 – Spousal/Partner Loan at 1%  Spouse or partner gifts/transfers funds - FULL attribution of income / gains to transferor  Exceptions: – Pay FMV or prescribed rate loan  Rate for Q4 2009 – 1% – Lowest ever!
  • 18. #8 – Spousal Loan at 1% (Example)  Jack loans Diane $200,000  Investment earns 5% annually Interest Expense – 1% Jack Diane $200,000 Income $2,000 Income $10,000 Interest expense (2,000) Net income $ 8,000  Income splitting opportunity: $8,000 Tax Savings (ONT): $8,000 X (46.41% - 21%) = $2,033 annually
  • 19. #8 – Spousal Loan – Rate Reset?  What if you have an existing loan at 3% or 4%? – Can you adjust rate on loan? – Can you refinance with new loan?
  • 20. #9 – Pay investment expenses by Dec. 31  Investment counseling fees (non-registered only)  Professional accounting services  Safety deposit box rental  Interest expense
  • 21. #9 – Make Debt Tax-Deductible  “Singleton Shuffle” $300,000 $300,000 $300,000 $300,000
  • 22. #9 – Make Debt Tax-Deductible (cont’d)  Lipson decision – Supreme Court (January 2009)  General Anti-Avoidance Rule (GAAR)  Use of attribution rules Source: http://www.scc-csc.gc.ca/Details/d4-eng.asp Credit: Philippe Landreville, Photographer Supreme Court of Canada Collection
  • 23. #10 – Plan NOT to Get a Refund! in·tax·i·fi·ca·tion (in-täk-sə -fə -kā-shə n) noun  the euphoria of getting a tax refund that lasts only until you realize it was your own money to begin with…
  • 24. 2009 Tip #10 – Plan NOT to Get a Refund! (cont’d)  “Undue hardship” provision  Too much tax withheld at source  Due to: – RRSP contributions – Support payments – Childcare expenses – Charitable donations  Form T1213
  • 25. #10 – Avoiding Clawback of 2010 OAS  Apply for 2010 reduction of clawback at source – OAS  Form T1213 OAS
  • 26. Questions & Answers

Notes de l'éditeur

  1. However, since the CESG has been designed to encourage long term savings for post-secondary education, there are specific contribution requirements for beneficiaries who attain 16 or 17 years of age. RESPs for beneficiaries 16 and 17 years of age can only receive CESG if at least one of the following two conditions is met: a minimum of $2,000 of contributions has been made to, and not withdrawn from, RESPs in respect of the beneficiary before the year in which the beneficiary attains 16 years of age; or minimum of $100 of annual contributions has been made to, and not withdrawn from, RESPs in respect of the beneficiary in at least any four years before the year in which the beneficiary attains 16 years of age. This means that you must start to save in RESPs for your child before the end of the calendar year in which the beneficiary attains 15 years of age in order to be eligible for the CESG.
  2. \\\\Cbmcc-fn-00004e\\invest_ds_multimedia\\Business Groups\\CIBC\\Private Wealth Management Client Presentation\\Staff\\Golombek, Jamie\\images\\iStock_000007474524Medium.jpg \\\\Cbmcc-fn-00004e\\invest_ds_multimedia\\Business Groups\\CIBC\\Private Wealth Management Client Presentation\\Staff\\Golombek, Jamie\\images\\iStock_000006288632Medium.jpg
  3. \\\\Cbmcc-fn-00004e\\invest_ds_multimedia\\Business Groups\\CIBC\\Private Wealth Management Client Presentation\\Staff\\Golombek, Jamie\\images\\iStock_000000078177Small.jpg