After an aggressive rate hiking cycle in both Canada in the United States during 2022, inflation data showed that the rate hikes have been effective. After peaking in the ~9% range, inflation has come down significantly and the Bank of Canada announced recently that inflation is now back at it’s 2% mandated target. The Bank… Read More
The You First Blog
On August 12th, the Department of Finance offered some additional relief to the bare trust reporting requirements. Many individuals who were captured by the original 2023 rules will now be exempt from filing. Specifically, any situation where parent and child are joint owners of a home or investment account is now exempt from filing. We… Read More
In our September 2023 newsletter, one of our articles talked about the new FHSA account, which was created to help people save for their first home. By now, most of the major details are well-known: You can contribute $8,000 a year to the FHSA You can contribute $40,000 lifetime to the FHSA Contributions are tax-deductible… Read More
On Wednesday June 5th, Bank of Canada Governor Tiff Macklem announced a policy rate reduction of 25 basis points to 4.75%, down from 5.00%. In the announcement, Macklem cited easing inflation (April 2024 CPI at 2.7% y/y), core inflation measures slowing, and lower-than-expected first quarter GDP growth. BoC’s three-month measures suggest continued downward momentum. Macklem… Read More
Are you on title on a parent’s or child’s home for estate or gifting purposes? Do you have an in-trust-for (ITF) investment account for a minor-aged child? Do you have a jointly-held bank account with a child or parent? As of the 2023 tax filing year, such arrangements may now require filing a T3 Trust… Read More
The 2023 RRSP deadline is Thursday February 29, 2024. Contributions made up to this date are included on your 2023 tax return and can be deducted against your 2023 income. Depending on your marginal tax bracket, you could see a tax savings as high as 53.5% on your contribution. Roughly speaking, if you earn more… Read More