Not sure how to make a savings plan? Read on…
Latest News
How to handle a stock with a huge capital gain + MORE Jul 23rd
If you hold investments in a taxable non-registered account, then income tax considerations ought to be part of your investing decision-making process. Although capital gains tax rates in Canada are relatively low, with only 50% of a capital gain being taxable to an investor, the dollars of tax paya.... More »
What is an emergency fund and how to build one + MORE Apr 11th
Table of contents
What is an emergency fund?
Why do I need an emergency fund?
How much should I keep in an emergency fund?
What qualifies as an emergency?
What doesn’t qualify as an emergency?
How to build an emergency fund
Set a monthly budget and find out how much you can set aside
Choos.... More »
What new bare trust tax filing rules mean for Canadians Mar 12th
Ask MoneySense
I would like some clarification on the T3 tax return for the year 2023. Whom does this rule apply to and can you clarify whether all the persons on the account have to complete T3 tax returns?
—Chander
Some people set up trusts that come into effect during their lives or upon.... More »
Eight solid alternatives to the Capital One Costco Mastercard for Canadians + MORE Jun 6th
Costco wasn’t the world’s first retail warehouse club, but in the nearly 35 years since opening in Canada, it’s become a staple shopping destination for families and groups who want deep discounts on bulk buys. The way that Costco works is that it relies on membership—you can’t walk into a.... More »
Late filers: Get your back taxes sorted before year-end + MORE Dec 10th
The last day on which tax practitioners can electronically file clients’ returns for tax years 2017 to 2024, as well as amended T1 returns for 2021 to 2024 using ReFILE services, before an annual month-long pause, is January 30, 2026. But there are important reasons for late T1 filers to add tax p.... More »
Four smart things to do with your income tax refund
– thestar.com
You might be tempted to spend your refund on a new TV set, but there are financially smarter options, writes Gordon Pape.Four smart things to do with your income tax refund
– thestar.com
You might be tempted to spend your refund on a new TV set, but there are financially smarter options, writes Gordon Pape.The Big Shift in Banking that Could Hurt Your Savings Accounts and Investments
– ratesupermarket.ca
Every once in a while you may get a notice from your bank. Your account’s monthly fees are going up. It may be a modest difference, of a dollar or so. You may write it off as the cost of doing business with your financial institution.
But right now, that fee hike may be a symptom of a broader economic phenomenon. It affects almost everything about your money, from how much you may pay for a mortgage to how much return you get on your savings.
What is it? The yield curve, which in Canada is teetering between flat and inverted. An inverted yield curve is uncommon, and it has ripple effects throughout the financial industry.
What is the Yield Curve?
The yield curve shows the relationship between expected returns on short-term versus long-term fixed income instruments. We’re talking here about how much banks make on the purchase of government treasury bonds.
When things are normal, the curve plots upwards. Typically, longer term vehicles bring in a greater return…
How to calculate capital gains and losses on rental property
– moneysense.ca
Q. I am selling my rental property, which I lived in for six years before renting it out the last five years. I do not own another home and I am selling this one for less than market value because some horrible renters caused the property to become run down. My mortgage principal is $263,000 and I am selling privately (to avoid real estate commission costs) for $325,000. What do I need to know in regards to capital gains reporting and taxes?
– Chris
A. When you convert a home that is your principal residence into a rental property, this is considered a change in use. You are deemed to dispose of the property at the fair market value at that time, and immediately reacquire it. Future capital gains may then apply based upon subsequent growth in the property’s value.
Under subsection 45(2) of the Income Tax Act, it’s possible to continue treating a principal residence converted to a rental property as your principal residence for up to four years. There are, however, several conditions:
1) You must report the subsequent rental income;
2) You cannot claim depreciation (capital cost allowance) on the property as a tax deduction;
3) You cannot designate another property as your principal residence;
4) You must be a Canadian resident…
– Chris
A. When you convert a home that is your principal residence into a rental property, this is considered a change in use. You are deemed to dispose of the property at the fair market value at that time, and immediately reacquire it. Future capital gains may then apply based upon subsequent growth in the property’s value.
Under subsection 45(2) of the Income Tax Act, it’s possible to continue treating a principal residence converted to a rental property as your principal residence for up to four years. There are, however, several conditions:
1) You must report the subsequent rental income;
2) You cannot claim depreciation (capital cost allowance) on the property as a tax deduction;
3) You cannot designate another property as your principal residence;
4) You must be a Canadian resident…
