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Feb 26, 2019

2019 Registered Account Information & Tax Tips

2019-02-26T14:48:14+00:00February 26th, 2019|Financial Planning & Tax|

With the arrival of 2019, we thought it would be useful to remind you of the contribution limits for the various registered accounts you may wish to fund. CRA My Account If you haven't already done so, take the time to register for your CRA My Account.  The account allows you to track your tax refund, view or change your return, check your benefit and credit payments, view your RRSP & TFSA limits, set up direct deposit, receive online mail, and more.  Start the process or access your account here. RRSPs Yearly limits for RRSP contributions are equal to 18% [...]

Feb 8, 2019

Does Your Financial Advisor Need To Act In Your Best Interest? The Answer May Surprise You

2019-02-08T15:08:11+00:00February 8th, 2019|Wealth Planning|

A recent proposal tabled by the Ontario Securities Commission (OSC) that was designed to hold investment advisers who work for bank-owned investment dealers, mutual fund and insurance companies to a higher standard of client care was recently rejected by the Canada’s provincial securities regulators. The quashed “best-interest standard”—an overarching rule stating that investment advisers must put their clients’ interests first—did succeed in bringing to light many conflicts of interest clients face when dealing with financial advisers. Importantly, independent portfolio managers like Bridgeport Asset Management sit outside this debate because they already owe a “fiduciary duty” to their clients: they are [...]

Oct 18, 2018

Individual Pension Plans: A Way for Entrepreneurs to Manage the New Passive Income Tax Rules

2018-10-19T18:05:30+00:00October 18th, 2018|Financial Planning & Tax|

Considering the historically favourable tax-deferral strategy of retaining and investing corporate earnings vs paying dividends, accumulating assets in a company has long been the default retirement plan for many business owners.  Recent changes to how passive corporate income is taxed has renewed interest in a favourable but lesser-known alternative to retained corporate earnings and RRSPs, namely, the Individual Pension Plan (IPP). Most of us are familiar with the common defined benefit pension plan.  Based on a formula involving matching ratios, employee service with the company and income level, employees and their employer make regular contributions to the plan.  In turn, [...]

Jun 18, 2018

Are You Prepared for the New Passive Income Tax Rules for Private Corporations?

2018-06-20T12:59:59+00:00June 18th, 2018|Financial Planning & Tax|

As many of you are aware, the Canadian government announced new rules in February concerning the taxation of passive income in Canadian controlled private corporations (CCPCs). The Liberals’ original draft legislation proposed to target tax strategies that have been used by small businesses and professionals since the early 1970s so naturally the initial announcement in July 2017 drew widespread condemnation. The government’s concern with the accumulation of passive income-generating investments in private companies stems from the fact that CCPCs pay a blended federal and provincial small business tax rate of 13.5% (in Ontario) on active business income up to the [...]

Jun 12, 2018

Down Payment Dilemma Part II: To Gift or Not To Gift?

2018-06-12T20:42:41+00:00June 12th, 2018|Financial Planning & Tax|

Previously, we wrote about the risks of gifting your children a down payment in today’s housing market. Stifling mortgage payments, rising interest costs and house price corrections all need to be considered, particularly in hot Canadian real estate markets like Toronto and Vancouver where even modest housing price corrections can wipe-out generous gifts.  Still, providing financial assistance to loved ones remains at the top of many parental wish lists, with down-payment support ranking about as highly as the desire to help with education costs.  Options like these are also often preferred to cash gifts if there’s any doubt about an [...]