Robert Lee & Associates

03/27/2016

There is 1 month left to file your 2015 T1 Income Tax Return. Consult with us today, at Not Charge, regarding Your Return!

http://www.leeandassociates.ca/tax-returns.html

03/10/2016

The 3 D's of Tax Planning: Deduct, Defer, and Divide:

Deduct All Possible Credits:

1) Spousal credits, dependent credits (children under 18 and/or with disabilities)

2) Charitable Donations

3) Childcare Expenses

4) Medical Expenses

5) Interest charges on student loans, investments, advisor fees

6) Moving expenses for work

Defer Strategically:

1) One can make RRSP contributions in any year up to the contribution limit, but that doesn't mean one should take the entire deduction in the same year. Defer claiming RRSP contributions if income will increase substantially in the following year, hence being placed into a higher tax bracket.

2) Charitable donations can be pooled and deferred for up to 5 years.

3) Medical expenses can be claimed in any 12-month period ending in the filing tax year.

4) Always keep track of, and utilize the rolling Education Tax Credit balance.

Divide and Conquer:

1) The higher income earner should pay for household expenses, and the lower income earner should invest household's free cashflow. This way, the investment income is taxed at a lower bracket.

2) Due to Income Attribution rules, it is harder to split income today. However, there is a trending method in Spousal Loans. Charge interest close to the market rate for the spouse to purchase or finance property, investments, etc.

These are only a few simple tips that can save from hundreds to thousands when filing your Income Tax Return!

01/03/2016

Here's a good summary of some major changes in Canadian Tax Laws that Individuals should be aware of for 2016:

1) Federal tax rate drops to 20.5% (22% last year) for income earners between $45,282 and $90,563. This translates to a maximum of $680 in savings for those with income at the top of the range, but on average, one can expect tax savings of $330 for an individual or $540 for a couple.

2) There's a new Federal tax bracket of 33% for individuals earning $200,000 and greater

3) The Canadian government is aiming to eliminate all efforts possible for income splitting by Q3 2016. This should be an important strategic note for filing 2015 Tax Returns, for individuals with Trusts and Hold Co.'s, who are looking to withdraw or allocate earnings.

4) The Tax Free Savings Account contribution limit decreases back to $5,500. The accumulated contribution limit including 2016 is $46,500. The Government states that the contribution limit is indexed and is subject to change based on inflation rates. Remember not to over-contribute or double-dip funds after withdrawing!

5) The Canadian Taxpayer's Federation has analyzed changes to child benefits. It could be as high as $2,000 for some households.

A two-income household with two children earning $60,000 could save between $1,600 and $2,000.

A single earner making $60,000 could save up to $100 and $250.

5) Non-Tax Related News:

Winter Tire Tax Breaks:

More details should follow regarding a specific amount in savings. Under new Liberal legislation, Automotive Insurance companies would be required to give discounts to drivers with winter tires.

Rent Increase:

Landlords will be permitted to increase rent across Ontario by a maximum of 2.0 per cent. The rate increase is applicable to lease agreements signed between Jan. 1 and Dec. 31, 2016.

Hydro Bills:

Residential hydro customers will see a fee of about $5.60 a month removed from their bills

http://www.ctvnews.ca/canada/new-laws-and-policies-coming-into-effect-on-january-1-1.2711793

Several new laws, government policies, and modifications to existing laws come into effect on Jan. 1, 2016, so here’s a rundown of the provincial and federal changes likely to impact your life – in a large or small way – in the new year.