Jamie Golombek is Managing Director, Tax and Estate Planning at CIBC Private Wealth Management, where he works closely with advisors and clients from CIBC Private Wealth Management, Wood Gundy, Imperial Service and other CIBC partners to deliver integrated financial planning and strong advisory solutions. Jamie is quoted frequently in the national media as an expert on taxation.
Pension splitting allows you to split up to half of your pension income with a spouse or partner. This can result in substantial tax savings if your spouse is in a lower tax bracket.
Beware the temptation to have profits on securities transactions taxed as capital gains, rather than as business income.
You can deduct various business expenses for income tax purposes. But be warned: CRA is looking for people who push the limit.
Appeal court rules taxpayer didn’t provide enough information to bank
Aside from using RRSPs for a first home, you can also use the funds to invest in Canadian real estate.
You need to hire an assistant. And after interviewing several candidates, you realize your spouse is best suited for the role. As long as he actually works for you and is paid a reasonable salary, you can deduct the wages you pay him from your business income.
A recent court ruling clarifies what qualifies, and what doesn’t
Be careful what expenses you write off, especially when they could be considered personal.
Don’t become a landlord before learning about the tax rules.
What constitutes a gift? That was the subject of a Tax Court of Canada decision released in November 2013.