Advisorsavvy Blog

Part of getting older is planning what will happen to your estate when you pass away. Most people want to ensure their loved ones do not have to deal with a financial burden upon death. After all, grieving is a difficult enough process on its own. You may be wondering if there is an inheritance tax in Canada. In short, there is no specific inheritance tax in Canada, but taxes on an estate may still be applicable when you pass on. If you’re on the receiving end of an inheritance, you may also be curious about the effect on your personal taxes. So, let’s answer some of your biggest questions about how estate taxes and inheritance works in Canada. What is an estate? An estate is an individual’s collection of assets at the time of death. For example, this could include savings, real estate, artwork, or any other asset of value. These assets are distributed according to the person’s will.

We Canadians are a lucky bunch. We have access to a variety of government resources and benefits. Moreover, Canada’s tax system is designed to redistribute wealth across the nation. One of the most common tax benefits available? The GST/HST tax credit. Administered by the Canada Revenue Agency (CRA), this benefit supports low to moderate-income families. In this article, we look at how to enroll, payment amounts, and corresponding provincial/territorial programs. What is the GST/HST credit? As mentioned above, the GST/HST credit is a federal tax benefit. It’s available to individuals and families with low to modest incomes. The purpose of the GST/HST tax credit is to help taxpayers offset the sales tax they pay. The benefit is paid quarterly. Related Reading: Guide To Tax Credits —How To Get A Bigger Tax Refund What is the difference between GST and HST? Both GST and HST are sales taxes. This means it’s charged on the sale of most goods and services sold

Tax season. Time to get out your financial records, turn off Netflix for an evening, and file your taxes. Are you prepared? Even more, are you looking for free income tax software in Canada? If so, this guide is definitely for you! Before getting into the best options for income tax software in Canada, let’s cover some of the basics of Canadian taxes you need to know. Who has to file taxes in Canada? The short answer is that everyone has to file taxes in Canada. However, personal taxes are only one aspect of the Canadian taxation system. Here are all entities that should file taxes annually with the Canada Revenue Agency (CRA): Related Reading: Marginal Tax vs Average Tax: Understanding Canadian Tax Brackets What is the deadline for filing taxes? The deadlines vary based on the entity. Here are all the deadlines for filing and paying taxes in Canada. Tax Return Filing Deadline Payment Deadline T1 Income Tax Return

Financial troubles happen. You might not be expecting them, but life happens. And if it feels like you’re alone in it, you’re most certainly not. A recent survey from Equifax found that the average Canadian’s debt is sitting at just over $20,000. When you’re in over your head, and cannot shake your debt, it’s likely that the first thing you’ll think of is bankruptcy. But there’s an alternative that’ll stop creditor phone calls and put you on the path to rebuilding. Meet consumer proposals. What is a consumer proposal? Consumer proposals are an often-overlooked alternative to bankruptcy. In a nutshell, it’s a negotiated settlement with creditors. With a professional, you’ll negotiate a manageable monthly payment schedule (typically over a one- to five-year period) so your creditors are able to recover at least some of what they’re owed. Consumer proposals do not involve your assets/possessions, though they do affect your credit score. They’re also a legal process that will stop creditor

Credit cards are how many Canadians buy everything from groceries to new clothes to dinners out, and everything in between. While there are many types of credit cards out there, one of the best is surely cash back credit cards. Getting a portion of what you spend back is a huge benefit! But what is the best cashback credit card in Canada? After all, just about every financial institution will offer one. This guide takes a closer look at cash back credit cards and explores some of the best options in Canada. What is a cash back credit card? A cash back credit card is a certain type of rewards card. It allows you to earn cash back on some purchases. They are very simple to understand, and you will simply earn a percentage of what you spend back. Typical amounts are 3%, 2%, or even 0.5%, it all depends on the particular card you decide to get. These are

Having a rewards credit card is a great way to get something in return for the many things you buy every day on a credit card. You can earn fantastic rewards, deals, and benefits simply by shopping normally at many of your favourite stores. However, with nearly every bank offering its own rewards card, it can be hard to choose which is the best for you. While you may think that all of these rewards programs are created equally, that is not the case. Some pale in comparison to others when it comes to what type of rewards you can get, how many rewards you get, and how long it takes to get them. If you want to learn more about some of the very best rewards credit cards in Canada, you’ve come to the right place. This guide is going to go over some of the best, and help you choose which is right for you. What is a

Self-employed individuals contribute a lot to Canada. Without them — all 2.6 million of them — we wouldn’t have the boutique shops or customized services we know and love. Are you self-employed? You probably enjoy the freedom of your job and pursuing your passion. On the contrary, you might wince at the thought of tax season. Compared to an employed individual, annual returns are more taxing – pun intended! Not where to start with filing your self-employed income tax in Canada? Our guide answers your top questions. Personal tax: types of employment in Canada In Canada, there are various types of employment. The distinction is important because it affects how to calculate your tax payable. Before diving into personal taxation, let’s review the definition of self-employed for tax purposes versus an employee:  How it Works: Self-employed Taxes in Canada  Self-employed individuals must track their income and expenses. The great thing about being self-employed is that expenses are deducted against income. On

Deciding where to do your banking is a big decision. It’s where you will keep your hard-earned money, and that is a lot of trust to put in an institution. Whether banking online or going into a branch, you will be interacting with this bank plenty of times. To ensure you have the best experience possible, you want to choose the best bank. But what is the best bank in Canada? Well, that is exactly what this guide is going to take a closer look at. Keep reading to learn more about the best banks in Canada, and how to choose the right one for your needs. Canada’s banking system: an overview Before we take a closer look at the best banks in the country, it is important to understand the basics of the Canadian banking system. The banking system in Canada is often seen as one of the safest in the world and is very accessible. In fact, according

What do you do when you get a credit card statement? Take a quick look and either delete it or toss it in the recycling? What about when you’re ready to roll up to your accountant’s office. Do you have a few folders with neatly-stacked stapled receipts or a shoebox of wrinkled papers you had to scramble around to find in the first place? You might even have your own system worked out for your financial records, proudly declaring that there’s a ‘method to your madness.’ Whether you stick to paper records, have migrated to folders in the cloud, or use a hybrid system, there are guidelines for both what financial documents to keep and for how long. Get your paper stacks ready and plug in your shredder! Let’s look at how long you need to keep financial records, and what you can recycle. One thing to keep in mind: If you’re a business owner, your guidelines might be a

“I just want my child to succeed,” is probably something almost every parent has said at one time or another. And a big part of setting up a solid foundation is by teaching your kids about money. Now, you certainly don’t have to get them investing when they’re still in diapers. But the fact of the matter is, money kinda really does make the world go-’round —and schools are only just starting to include basic financial skills into their curriculum. Chances are, your entire k-12 school experience didn’t cover the basics, let alone information like investing or mortgages. Weaving money management lessons into everyday life can give your kids a foundational understanding of concepts like saving and smart budgeting. Financial literacy, for the win! Let’s look at age-appropriate financial lessons for kids, and how you can integrate these into your daily activities. What is financial literacy? The simplest definition of financial literacy? Knowing how to manage your money. But you

A chequing account is an easy place to deposit and withdraw money for your day-to-day life. It’s great for daily transactions, paying bills, sending money, and making payments. This guide outlines some of the best chequing accounts in Canada, and how you can choose the right one for you. What is a chequing account, and what do I use it for? As mentioned above, a chequing account is essentially a deposit account that allows people to easily and quickly withdraw and deposit money for whatever they need. Many people get their paychecks deposited into their chequing account, and many use it to pay their bills, pay off their credit cards, withdraw cash, and more. You may also be wondering whether chequing accounts earn interest. Chequing accounts often don’t pay interest, but there are some that do — although the interest is often less than savings accounts. If your chequing account pays you interest, that money earned will indeed be taxable.