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Odette Morin

Odette Morin

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New $10,000 TFSA limit approved

TFSA

 

 

 

 

 

 

 

BREAKING NEWS
The CRA has come out and confirmed that the TFSA increase to $10,000/year is effective immediately (before budget gets passed into Law).  You can top up your limit now.
The total maximum contribution from all previous years to date is $41,000.  If you have maximized every year, and have already made your $5500 contribution this year, you can now add $4500.
Contact us if any questions or wish to make your top up TFSA contribution now. email hidden; JavaScript is required

2015 Federal Budget Highlights

Joe's Budget shoes

 

 

 

 

The Federal Government delivered its “New Balance” budget today offering lots of goodies for everyone. Here are the most important announcements affecting your financial planning:

  • No new tax cuts.
  • TFSA limit is being increased from $5500 to $10,000 per year effective immediately. This happens as soon as the budget is passed and approved. We will let you know as soon as we hear.
  • The RRIF (Registered Retirement Income Fund) MAP (Minimum Annual Payment) is being lowered. Under the current rules, a 71-year-old would have to withdraw 7.38 per cent of his or her RRIF in the first year, escalating all the way to 20 per cent by age 94. Under the new rules outlined in the budget, those limits have been ratcheted down to 5.28 per cent to start, and down to 18.79 per cent by 94. This truly is excellent news for retirees.
  • EI premiums to be reduced by 21% in 2017
  • EI compassion benefit (to take care of a sick family member) increased from 6 weeks to 6 months.
  • Small business tax reduced from 11% to 9% by 2019.
  • New government initiative to help Women owned businesses.
  • More financial help for Young entrepreneurs.
  • New retirement income benefit for veterans.
  • New home accessibility for seniors and people with disabilities. Starting this tax year, homeowners who spend up to $10,000 on renovations such as wheelchair ramps, walk-in bathtubs, non-slip flooring and grab bars can get a tax deduction for up to $1,500.
  • There is something for students too. Canada Student Grants eligibility will drop from 64 to 34 weeks.
  • The government is also changing the student loan program. Under current rules, any dollar over $100 a week that a student earns from a part-time job while studying reduces the loan amount they’re eligible for. The budget proposes eliminating that “penalty” from now on, which the government says would help 87,000 students a year.
  • 4 Billion surplus this year
  • Total overall debt $617Billion

More in tomorrow’s newspaper. Make sure to check our blog often. We will be commenting on these new government initiatives in the weeks ahead.

Sources: CBC news, CTV News, National Post, Globe & Mail

Vancouver is not the most expensive city for First-Time Home Buyers

Surprise! Surprise! Vancouver is not the most expensive city for first-time home buyers.

“Despite being Canada’s most expensive real estate market in general, Vancouver was second to another major city in terms of how much first-time home buyers spend on a property, according to a recent survey by Genworth Canada.

First-time buyers in the city spent a median of $420,000 on their first home – sneaking in at $5,000 less than the $425,000 median price spent in Toronto.

See results of the study here

1st time hb

10 ways to waste your tax refund

I read this article this week about ways to waste a valuable tax refund.  Here is the link below.

Just remember that a refund is not free money.  It is tax you overpaid from your paycheque or other source of income.  Don’t fool yourself.  It is not a true windfall. If you spend this money on frivolous things, it is wasted.

Consider the balanced approach I always favor to avoid feeling deprived. Be responsible with most of the tax refund and spend a little of it as well. The awesome feeling of doing the right thing for your future and rewarding yourself a little is priceless!

Here is the link to “10 ways to waste your tax refund”

waste money

Do you own foreign assets of more than $100k?

This is a question you must answer on your tax return.  If you say yes, you have to complete T1135 which outlines the value of the foreign property and the income derived from them.

Failure to report your worldwide income and assets will trigger a hefty penalty. The penalty for a late filed T1135 is $25 per day to a max of $2,500.  Ouch!

If you haven’t and should have filed a T1135, you can make a voluntary disclosure and beg for forgiveness by asking for the penalty to be waived.

Here is the link to the voluntary disclosure form.

Good Luck!

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