Jamie Golombek, managing director of tax and estate planning at CIBC Wealth Advisory Service

Focus: Tax planning
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CHANGES TO TAX LAWS SLATED FOR THIS YEAR

  • Boutique tax credits continue to be eliminated
    • Tuition, textbook, fitness and arts credits gone for 2017
    • Public transit pass eliminated as of July 1, 2017
  • Some credits enhanced
  • Medical credit for infertility expenses no longer limited to those with medical infertility

TOP DEDUCTIONS/CREDITS THAT PEOPLE FORGET ABOUT

  • Disability tax credit
  • Caregiver credit
  • Child care expenses — camps
  • Reinvested dividends get added to the ACB
  • Moving expenses — e.g. students

NEWSWORTHY

  • Changes to taxes in the U.S. could affect Canada

MAIN CONCERNS AND QUESTIONS FROM CLIENTS

  • How to use extra cash effectively — TFSA/RRSP/mortgage
  • Minimizing family taxes overall in the face of increasing top marginal tax rates

WHAT PEOPLE SHOULD BE DOING AT THIS TIME OF YEAR

  • Use your tax refund wisely — RRSP/TFSA/mortgage

ADDITIONAL NOTES

  • As of this week, the CRA has only received about 10.4 million tax returns for 2016, out of an expected total of around 29 million (2015 number), so two-thirds haven’t filed yet
  • Of those who have filed so far, 67 per cent are still getting a tax refund, with the average amount refunded to date being $1,629 (15 per cent of tax returns showed a balance of tax owing for 2016, while 18% had a nil return)
  • Ideally, a refund would be used to increase net worth, by paying off debt and topping up tax-advantaged savings plans
  • If the refund isn’t enough to cover all of these strategies:
    • For clients with high-interest debts, tackle these first
    • Choosing between RRSP or TFSA, or paying down the mortgage, depends on factors such as current and expected tax rates, rate of return on investment and interest rate on debt, as well as when funds will be needed for expenses in the future