The OAS clawback ceiling isn’t as firm as you thought — and here’s how you can take advantage
There is a ceiling that many retirees reach when generating income from OAS accounts that can reach up to fifteen cents on the dollar in “clawback” or money owed in returns. There are ways however, that even those who have reached well above the ceiling can save some money. You could restructure your income flows […]
Read MoreAvoiding tax is okay, but know the boundaries
Under Canadian law, there is legal precedent for being allowed to order your financial affairs in such a way to minimize or even eliminate any taxes you would otherwise owe. However, the government passed a law, called the General Anti Avoidance Rule (GAAR), as an attempt to draw a line between use and abuse of […]
Read MoreWhy saving too much for retirement is just as risky as saving too little
The concept of retirement planning is to ensure that when you’re not working, and the flow of money coming in slows or stops entirely, your life doesn’t stop as well. Many focus on reducing, or even eliminating, the financial risk that might threaten their retirement portfolio. And while safeguarding your end of life nest egg […]
Read More32% of Canadians don’t know difference between TFSA and RRSP, survey shows – BNNBloomberg.ca
When trying to figure out their financial planning for retirement, 69 percent of Canadians say they would choose a TFSA over an RRSP. However, there’s a problem. About a third of all Canadians don’t have the financial knowledge to be able to distinguish between them. A TFSA is a savings account where investment income is […]
Read MoreThe best way to transfer investments to your spouse
There are tax implications when transferring investments to your spouse. A straight transfer of a capital asset doesn’t mean the capital gains are also transferred, and the taxes on the capital gain or dividend would still be your responsibility. Depending on your goals for transferring investments, there are a number of ways to do it. […]
Read MoreLoan interest is still deductible on your tax return, even if your investment or business goes belly up
There is a little known rule in Canadian Law that allows one to deduct loan interest even if the entity that received the loan money goes bankrupt or doesn’t exist anymore. This could be either an investment or a business. This rule has been part of the Income Tax Act since 1994. The rule essentially […]
Read MoreHave foreign property? The CRA issues harsh penalties if you don’t file this form
If you own foreign property, in most cases, you will need to fill out the Foreign Income Verification Statement Form (T1135) if the value of the property exceeds $100,000 (at any point during the tax year in question). If you do not do so, the CRA may issue harsh penalties. Failure-to-file charges are $25 for […]
Read MoreTax tip – Warning: Buyer beware when it comes to Health Spending Accounts
Canada Revenue Agency (CRA) is cautioning business about Health Spending Accounts (HSA) tax schemes. In particular, they are warning people to be aware of invalid HSA deductions. Any business that is incorporated can offer this plan to their employees and shareholders so long as the latter also earns a T4 income. A sole proprietorship is […]
Read MoreA primer on keeping your tax records
Just because you’ve filed your tax return doesn’t mean you’re over and done with the process. Everyone who pays taxes in Canada has a legal obligation to retain records relating to their tax return for six years. This means that the 2018 tax year records should be kept until the end of 2024. For business […]
Read MoreHow to renegotiate your pay and treat your career as a financial asset – BNNBloomberg.ca
Financial planning needs to go beyond your investments and should be focused on the source of financing these investments, your job. Negotiating a salary before you even begin working could cost you a million dollars over time. When you have been with a company for a while, you need to be strategic when asking for […]
Read MoreTax Tables
Ask Our Experts
Quadrant is dedicated to your financial success. Get expert advice and insights to grow your business and plan for your future.