Families

With the tax filing due April 30, we've included new tax highlights for the 2016 taxation year.

This tax-filing season, many important changes and improvements were made to services, benefits and credits for Canadians. Here’s what you need to know:

New and Improved Benefits and Credits

  • Canada Child Benefit: The Canada child benefit is a tax free monthly payment to help eligible families with the cost of raising children.

Other Changes

  • Income Splitting Tax Credit: The family tax cut has been eliminated for the 2016 year and future tax years.
  • Children’s Fitness Tax credit: For 2016, claim up to $500 eligible fees for your child’s prescribed program of physical activity.
  • Children’s Art Tax Credit: For 2016 claim up to $250 eligible fees for your child’s prescribed program of artistic, cultural, recreational or developmental activity.
  • Home Accessibility Tax Credit: For 2017 and subsequent tax years, you can claim a non-refundable tax credit for eligible expenses incurred for work performed for a qualifying renovation of eligible dwelling of a qualifying individual.
  • Reporting the Sale of Your Principal Residence: Starting 2016, you are required to report basic information on your tax return when you sell your principal residence to claim the full principal residence exemption.

If you have any questions, please contact us and we can connect you with a tax professional.

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BC Finance Minister, Michael de Jong delivered the province's 2017 budget on Feb. 21, 2017. Learn what the budget means for small business owners and individuals.

BC Finance Minister Michael de Jong delivered the province’s 2017 budget on Feb. 21, 2017. The budget anticipates a surplus of $295 million for the current year, $244 million in 2018-2019 and $223 million in 2019-2020.

Corporate Income Tax Measures

Reduction in Corporate income Tax Rate from 2.5% to 2.0% effective April 1, 2017

Corporate Income Tax Rates- As of January 1, 2017
British Columbia Combined Federal & BC
  General 11% 28%
  M&P 11% 26%
  Small Business* 2.5%/2.0%** 13.0%/12.5%**
  *on first $500,000 of active business income **effective April 1, 2017

Personal

Increase in the personal tax rate from 40.61% to 40.95% for ineligible dividends effective January 1, 2017.

 Personal Combined Federal/Provincial Top Marginal Rates
2017
  Interest and regular income 47.70%
  Capital gains 23.85%
  Eligible dividends 31.30%
  Non-eligible dividends 40.95%

Medical Services Plan Premiums: Rate will remain at $75/month/adult. Effective Jan 1, 2018: 50% MSP premium reduction for households with annual net incomes up to $120,000.

Firefighter & Search & Rescue Volunteer Tax Credit: Non-refundable tax credit of up to $3,000 for 2017.

Back to School Tax Credit: Non-refundable tax credit of $250 per child (ages 5 to 17) for 2016 to 2018. Effective Jan 1, 2018, the education tax credit will be eliminated.

Electricity- Provincial Sales Tax Act: Effective Oct 1, 2017, the tax rate is reduced to 3.5% of the purchase price.

Property transfer tax: For first time home buyers to save property transfer tax on the purchase of their property the partial exemption has been increased to $500,000 from $475,000.

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The importance of a financial plan. Working with us to create your financial plan helps you identify your long and short term life goals. When you have a plan, it’s easer to make decisions that align with your goals. We outline 8 key areas of financial planning.

The importance of a financial plan. Working with us to create your financial plan helps you identify your long and short term life goals. When you have a plan, it’s easer to make decisions that align with your goals. We outline 8 key areas of financial planning:

  • Income: learn to manage your income effectively through planning
  • Cash Flow: monitoring your cash flow, will help you keep more of your cash
  • Understanding: understanding provides you an effective way to make financial decisions that align with your goals
  • Family Security: having proper coverage will provide peace of mind for your family
  • Investment: proper planning guides you in choosing the investments that fit your goals
  • Assets: learn the true value of your assets. (Assets – Liabilities)
  • Savings: life happens, it’s important to have access to an emergency fund
  • Review: reviewing on a regular basis is important to make sure your plan continues to meet your goal

Contact us for a complimentary review.

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If you have a mortgage on your home, chances are good you also have mortgage insurance. The idea is that if you should become seriously ill or die before paying off the mortgage, the coverage will kick in and pay it off for you. It's meant to offer peace of mind and to reassure you that your family will be able to stay in your home if anything should happen to you.

If you have a mortgage on your home, chances are good you also have mortgage insurance. The idea is that if you should become seriously ill or die before paying off the mortgage, the coverage will kick in and pay it off for you. It’s meant to offer peace of mind and to reassure you that your family will be able to stay in your home if anything should happen to you.

The reality falls a little short of that. In this week’s Marketplace investigation, we meet two families who bought the coverage and thought they were protected, only to have their claims denied when they became sick or died. In each case, the insurer said the applicant person had lied on their initial application form.

It turns out a routine test at the doctor could be reason to deny your claim, if you don’t mention it. Had a cuff inflated on your bicep? That counts as being tested for high blood pressure.

As Erica Johnson reports, the bank staffers selling mortgage insurance are unlicenced and rarely trained to explain the details and legalities of those insurance products. The result is people who pay premiums and think they are covered, only to realize later that they are not.

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