2013 Combined Personal Tax Rates

For those of us interested in getting a head start on preparing for our 2013 taxes, we are pleased to be able to provide a chart which outlines the tax rates for all levels of taxable income as well as personal Federal and Ontario basic credits and equivalent to spouse.  This chart also includes a tax update for Dividends.  To access the chart and other tax information please use the link provided, and as always I am only a phone call away for personal help:  Jacques Liwanpo CA Website

Did you buy a home in 2012? Check out this tax information

Did you know?

If you bought a home in 2012, you may be able to save on your taxes through the first-time homebuyers’ tax credit.

 This information is not necessarily “new”, but very well may still be “news” for some first time homebuyers. However, we are providing the following updated reminder to those who may have purchased a home in 2012. 

To qualify for the homebuyer’s tax amount:

•You or your spouse or common-law partner must have purchased a qualifying home; and

•You did not live in another home owned by you or your spouse or common-law partner that year or in any of the four preceding years.

 

If you would like more detail about this and other tax credits currently available to you, please visit our website http://liwanpo.com/taxes_personal.php

 

Canada Pension Changes: CPP, OAS, GIS Summary

It has been some time since we have had significant news from the Government of Canada, but as you may have heard, they are currently proposing to make changes to eligibility for OAS and GIS. In addition to this we have recently seen the implementation of changes to the Canada Pension Plan which I wrote about earlier.  I felt that this was important enough to write about again, so I have created a Newsletter with as much relevant detail as possible for both the CPP and OAS/GIS changes.  The February 2013 Newsletter is posted  on our website and you can use the links below to read the full article.

CPP Summary:

1. If you are under age 65 and already collecting CPP, but continuing to work you and your employer must now continue to pay CPP until age 65. 
2. If you are between ages 65 and 70 and continuing to work but elect to stop contributing to the CPP you must complete a form CPT30 for your employer AND SEND A COPY TO REVENUE CANADA.    If you do not elect to stop, you and your employer must continue to pay CPP until age 70.  (A copy of the CPT30 form is attached to the end of the Newsletter for your information)

OAS/GIS Summary:

The Old Age Security (OAS) Pension is a monthly benefit available to Canadian applicants 65 years of age who meet the Canadian legal status and residence requirements.  However, the Government of Canada is proposing to change the eligibility rules for the Old Age Security and Guaranteed Income Supplement payments.  If you were born before 1957 this will not affect you, but for the rest of us it may mean changing the way we plan our retirement years.    

As usual, we have posted this under the red banner on our website homepage. You can read this and other relevant articles using the link to the website homepage or our "Library" page for more details:

http://liwanpo.com/
http://liwanpo.com/resources_newsletter.php

As you know, I am always happy to hear from you so if you would like to discuss this or other issues, please feel free to call me.

Government of Canada is changing OAS eligibility

Currently the Old Age Security (OAS) Pension is a monthly benefit available to Canadian applicants 65 years of age who meet the Canadian legal status and residence requirements.  However, the Government of Canada is proposing to change the eligibility rules for the Old Age Security and Guaranteed Income Supplement payments.  If you were born before 1957 this will not affect you, but for the rest of us it may mean changing the way we plan our retirement years.

The Government of Canada has introduced measures to gradually increase the age of eligibility for the Old Age Security (OAS) pension and the Guaranteed Income Supplement (GIS) between the years 2023 and 2029, from 65 to 67. However, those currently receiving OAS benefits will not be affected by the changes.  These and other changes will affect those born after 1957.  To find out more about these proposed changes use this link to read the entire article posted on the "Library" page of our website in the Newsletters section.

Government of Canada Proposed OAS and GIS Changes

2012 Ontario Healthy Homes Renovation Tax Credit

At last, seniors are getting a tax break on home renovations required to assist living at home.  And the good news is, this is not one of those one year only deals, this tax break is here to stay for now.  Here is the best part though, the 2012 Ontario Healthy Homes Renovation Tax Credit is not just for seniors with disabilities.  Any person over the age of 65 either as a tenant or a homeowner can make eligible renovations to their residences and qualify for this tax credit.   In addition, there is no income test to qualify and 100% of eligible expenses qualify.  Finally, this is good news for all seniors who want to live in their own homes longer, improve accessibility or be more functional or mobile at home.

IMPORTANT NOTE: For the 2012 tax year only, eligible expenses cover fifteen months from October of 2011 through December of 2012.  If you want to take advantage of the first year of this tax credit, you will need to do so before the end of 2012 if you have not already done so.

I have prepared a more detailed newsletter on this subject, and you can read the full article in detail using this link.  Look for the red banner on the lower left hand side of the home page and click on the article "2012 Ontario Healthy Homes Renovation Tax Credit".

http://www.liwanpo.com/

Be Mortgage Free Faster!

Yes, it really is possible to pay off your mortgage faster using these tried and true smart-money strategies provided by the money lenders themselves.  Reduce your Amortization period.  Make more frequent payments. Use your prepayment options.  To get more details on how this works in your favour, use the following link to read the full article, "Be Mortgage Free Faster 2012":
http://www.liwanpo.com/fin_personal_personal.php

This site also contains many other articles of interest on personal and business finance tips, tax tips and more.  Well worth your time to investigate what's available free to read. Jacques

2012 Taxes: Income Splitting and Attribution

Admittedly, not an easy tax subject to get your head around, but in the end can be well worth taking the time to understand and apply if the conditions are right for you.

In short, the Income Tax Act contains rules designed to eliminate the ability for a taxpayer in a high tax bracket to shift income to a lower-bracket taxpayer.  Knowing the rules and working within the restrictions can be beneficial but in general it requires the assistance of a tax professional to work out the details.  If you think you might benefit from income sharing, we can help you to work through any options that might apply.  For more details on this and other relevant tax subjects, please visit our website, Taxes pages. http://www.liwanpo.com/taxes_personal.php