The Liberals proposed the ‘First Home Savings Account’ (FHSA) as part of their 2021 election platform to help Canadians under the age of 40 save for a down payment on their first home.
The account will be a combination of an RRSP and a TFSA. Contributions to the FHSA will provide the taxpayer with a deduction that can be used to reduce their income for the year. The maximum contribution is $40,000, and account funds will grow tax-free. When the funds are withdrawn, the growth won’t be taxable if the funds are used to purchase the taxpayer’s first home. Read more…
The Canada Revenue Agency (CRA) is extending the payment due date for current-year individual, corporate and trust income tax returns — including instalment payments — from Sept. 1 to Sept. 30.
The CRA said Monday that it will not charge penalties and interest if payments are made by the extended deadline of Sept. 30. This includes the late-filing penalty as long as the return is filed by Sept. 30. Read more
Half of Canadians say they don’t have a Will… Having a Will and POA documents are of utmost importance. Also once you have a Will look at it periodically and as your life changes do the necessary updates. It’s not that difficult to be prepared and will spare others a lot of unnecessary grief and undue burden…read more
One of an executor’s most important jobs is to obtain the clearance certificate: written confirmation from the Canada Revenue Agency that the deceased (and the deceased’s estate) has paid all taxes and associated interest and penalties up to the date the certificate is issued. How does an executor obtain one and why is it so important? …Read more
Tax-free savings accounts were introduced in 2009. These accounts allow you to save money, without paying any tax on the interest you earn or when the money is withdrawn. However, if your TFSA carries on a business, according to subsection 146.2(6) of Canada’s Income Tax Act, the income earned is taxable. Read more…