Power of attorney and taxes: What you need to know + MORE Oct 13th

If you faithfully pay your loans, mortgage or credit card each month, you’ve probably gotten a call or letter from your bank telling you that you’ve been pre-approved for a credit increase or a line of credit.
But if you’re not currently using all the credit that you have available, you might not think you need it. Guess what? Turning down pre-approved credit increases might actually hurt your credit. This post will walk you through why you get offered these credit increases, how it can improve your credit score and when you should turn an increase down.
Why They’re Offering The Increase
If a bank that you have an account with already tells you that you’ve been pre-approved for a credit increase or new line of credit it’s because they see you as a good customer. Whether you diligently pay off your card every month or you stay current on your loans, they’re offering you an increase because they trust that you will pay them back.
No Hard Check
One of the best things about these pre-approved credit increases is that they often don’t perform a hard credit check on your file…

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Q: If we have a client in Nova Scotia that has power of attorney for their mother who is in a nursing home and both children with POA own a home, will they be responsible for any capital gains on the sale of their mother’s home?
 — David
A: People who are acting as power of attorney have a fiduciary responsibility to manage the grantor’s financial affairs. This includes the responsibility to file income tax returns as well as to pay the associated income tax liabilities using the grantor’s assets.
An attorney can be personally liable for any damages that result from their negligence, so it’s important to act with care, but also to consult with professionals in the management of someone else’s financial affairs.
Every Canadian is eligible to claim a principal residence exemption on the sale of their principal residence. Your concern, David, relates to whether or not the attorneys are deemed to own a second home while acting as attorney for their mother…

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We’re in the final week of the federal election campaign and all three major political party leaders have finally unveiled their full campaign platforms. Here’s an overview of what NDP leader Tom Mulcair, Liberal leader Justin Trudeau and Conservative leader Stephen Harper have promised as it relates to your personal finances. For details on other important election issues and campaign promises that go beyond your pocketbook, visit Vote Canada 2015. Election day is Oct. 19.
Taxes
NDP: Cancel income splitting for families with kids under the age of 18 but keep it for seniors; eliminate the CEO stock option loophole that allows wealthy CEOs to avoid taxes on 50% of income received from cashing in company stock (with proceeds invested into eliminating child poverty); increase investment in the Working Income Tax Benefit (WITB) by 15% to further support working Canadians who live below the poverty line; introduce income averaging for artists…