Federal Budget Impacts Investment Taxation
Posted on:The recent Federal Budget included measures to close a favorable tax rule for investors in investment accounts or through corporations, trusts and holding companies, who have proposed rules to curb the tax advantages of “corporate class” mutual fund shares. Corporate class funds are organized as “switch funds” that offer different types of asset exposure such as Canadian equities, global equities…
Read MoreAsset or a Liability?
Posted on:Do you have a separate recreational property or a rental property? If so this may apply to you: Some years ago, Roy and Mary bought a cottage at the lake in their home province for about $50,000 and today it is worth about $750,000. Over the years, they have spent about $100,000 on improvements to the property and they kept all receipts to prove it. Roy and Mary, like many, think that it will be…
Read MoreTFSA Designations Matter
Posted on:The method that you use to name a successor, owner or beneficiary of a TFSA makes a big difference to your estate, not only for a TFSA to maintain its tax-exempt status but also to ensure that the assets are distributed to the intended recipients. You can name your spouse or common-law partner as a successor-holder or anyone else as a beneficiary. The successor-holder and beneficiary designations…
Read MoreInsuring Your Mortgage Through Lenders
Posted on:Marc and Lorna just bought a house and, like most home buyers, they needed a mortgage. During the financing process, they were offered mortgage insurance by the lender. They wanted to know more before taking the coverage. Do we control the policy? Because the coverage is usually a group plan, the agreement is actually between the lender and the insurance company. Marc and Lorna would be insured…
Read MoreConsumer Impact of Low Interest Rates
Posted on:While the Bank of Canada publicly muses about adopting negative interest rates on Government Bonds as a policy tool to stimulate economic growth, the Bank of Japan recently cut its benchmark interest rate below zero, joining several others including the European Central Bank in the negative interest rate club. According to the February 6th issue of The Economist, almost one quarter of the world’s…
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