RRSP and TFSA reminders
The deadline to contribute to your RRSP for the 2019 tax year is Monday, March 2, 2020. The maximum contribution amount for 2019 is $26,500, or 18% of earned income in 2018, whichever is the lesser amount. Your Notice of Assessment from CRA will indicate if you have any additional contribution room.
In 2020, the annual amount that can be contributed to a Tax-Free Savings Account (TFSA) is $6,000.
Earnings — where art thou?
Saying 2020 has been a news-filled year so far is probably an understatement. We have had an escalation of conflict between the U.S. and Iran, the signing of a trade deal (Phase 1), an impeachment acquittal, and the rise of the coronavirus. Add it all together and we have markets near all time highs… long live the bull.
Sale of a business
There are two basic methods of structuring the sale of an incorporated business. You can either sell the net assets of the business or sell the shares of the incorporated entity. The decision as to the structure of the transaction will depend on the circumstances surrounding the sale as well as the negotiating ability of the vendor and purchaser.
Changing how we think about retirement
What does retirement mean to you? For some, it’s travelling or spending more time with family, while others believe semi-retirement, or a gradual transition from work, best suits them.
In this episode, host Sarah Widmeyer speaks with Maureen Glenn, Vice President of Tax & Estate Planning, highlighting strategies to ensure you maintain adequate sources of income during retirement. It’s vital to be prepared for this phase — financially and otherwise — so that you continue to enjoy your life, no matter what your definition of retirement is.
Hurry up and wait! It’s that time of year again…
We understand that many of our clients like to get their taxes done early and avoid that end of April chaos. We know that your accountants would like that too. However, CRA doesn’t make that possible for many of us. Why? Because the information needed to produce some tax slips isn't available until as late as March 31st. Remember, companies and funds must complete year end audits before they can provide the information to us and to you.
The majority of Richardson GMP tax slips will be mailed to clients late February/early March. However, the deadline for T3 (Statement of Trust Income) and T5013 (Statement of Partnership Income) mailings is not until March 31. Also, if you had any sells, maturities or redemptions in your non-registered accounts, the Trading Disposition Summaries are not mailed until early April. This is to make sure that the summaries accurately capture any Return of Capital transactions.
So set your expectations accordingly, and when you get your Tax Slip Checklist from us, make sure you and your accountant wait for all the slips before filing your return. As always, feel free to contact us with any questions.