How the federal budget will affect income tax + MORE Mar 23rd

brightcove.createExperiences();

On Tuesday, Federal Finance Minister Bill Morneau stood up in the House of Commons to table his first federal budget. While the big numbers will grab the biggest headlines (and it doesn’t get much bigger than that $29.4 billion deficit), many families wonder just how this budget will affect them. Here are six key changes that will impact Canadian parents:
No. 1: The introduction of the Canada Child Benefit
Starting in July, the Universal Child Care Benefit (UCCB) and the Canada Child Tax Benefit (CCTB) will be replaced with one non-taxable Canada Child Benefit. The Budget declares that the Canada Child Benefit will be simpler, tax-free, better-targeted and “much more generous.”
An example: Under the current system, families with one child and with annual earnings of $30,000 would receive $4,852, after tax, if their child is under age six, or $3,916 if their child is aged six to 17…

SAN DIEGO – A judge has granted a Southern California yoga instructor’s request to withdraw from a federal class-action lawsuit against Trump University after her attorneys said the Republican presidential front-runner and his lawyers put her “through the wringer.”
Tarla Makaeff’s (MAY’-koff’s) withdrawal from the case would leave three other plaintiffs as the six-year-old case nears trial in San Diego.
U.S. District Judge Gonzalo Curiel ruling published late Monday allows Trump’s attorneys to do an additional deposition of another plaintiff and recover some attorney costs to be determined later. The plaintiffs have a week to decide whether to accept the terms.
The skirmish came in one of three lawsuits that claim Trump University deceived customers with empty promises to teach them secrets to real estate success.
The post Judge grants woman’s request to quit Trump University suit appeared first on Canadian Business – Your Source For Business News.

The Federal Budget made some important tax changes for families.  The good news is that the much rumoured increase to the capital gains inclusions rate did not come to fruition in this budget,  and the anticipated changes to stock option benefits have been deferred for now.  But  If you’ve invested in corporate class mutual funds, you ‘ll want to do any switching between funds on a tax-free basis now until September as that special tax-free treatment will disappear.
Charities will also wince at the cancellation of a provision expected to begin in 2017, introduced in the last Budget.  That is, the donation of sales  proceeds from a qualifying private corporate or real estate dispositions will no longer qualify for a capital gains exemption if proceeds are donated to charity.
Families will be happy with the introduction of the Canada Child Benefit, which is a refundable credit based on family net income.  Specifically, the new CCB provides a maximum benefit of $6400 per child under age of six and $5400 per child age six to 17…

Learn, save, invest and prosper with My Own Advisor.
Welcome to my first financial goals update for 2016.

I like this napkin-drawing from Carl Richards, because it’s very true.  All plans are basically a set of assumptions (since nobody knows what the future will bring).  This doesn’t mean plans or planning in general is not important, but it’s the process of planning and re-planning that’s relevant for success.  I live this reality every day in my Project Manager role and it applies to personal finances and investing as well.
We feel goal setting and monitoring every year help us get to where we want to be – financially. These goals for 2016 are not sophisticated.  They’re not overly impressive.  In fact, our goals are downright boring and I could fit them on the back of my business card.  However, when it comes to personal finance and investing I’ve learned that simple and boring is exactly the approach you should take to be successful.
Let’s recap our goals and see where we’re at as of this month…

With budget 2016, we are starting to see a commitment to the process of tax simplification. As promised, the Liberals made changes to the federal income tax brackets. Starting in 2016, the middle class income tax bracket will drop from 22% to 20.5%. That means if your taxable income is between $45,282 and $90,563, you’ll pay less tax. However, those earning more than $200,000 a year can expect to pay more income tax, with the introduction of a new 33% tax bracket.
Those counting on a boost to their income from stock options and were worried about possible changes and caps on stock option gains need not worry. Even though a cap of $100,000 on this favourable tax treatment was anticipated, no changes were made. At present, investors and employees are taxed on 50% of the gains of stock options.
 
 
The post How the federal budget will affect income tax appeared first on MoneySense.