Investment

2025 Federal Budget Highlights

November 5, 20252025, Blog, Business Owners, Estate Planning, Family, Financial Planning, incorporated professionals, Individuals, Investment, mortgage, personal finances, Professional Corporations, Professionals, Retirees, Retirement, Tax

The 2025 Federal Budget focuses on stability and long-term growth, with no new broad tax increases. Key updates include GST relief for first-time home buyers, new credits for caregivers, and expanded incentives for clean-tech and manufacturing investment. The budget also clarifies how the 21-year rule applies to trusts and delays the new bare-trust reporting requirements to 2026. Overall, the plan aims to balance fiscal discipline with practical support for Canadians and small businesses.

What You Need to Know About RRIFs

October 1, 20252025, Blog, Investment, pension plan, Retirees, Retirement

RRIFs come with required annual withdrawals that increase over time. Learn how much you must take out, how it’s taxed, and how to make the most of your retirement income.

OAS Clawback 2025: What Retirees Need to Know About the Recovery Tax

July 3, 20252025, Blog, Investment, pension plan, Retirees, Retirement

The OAS recovery tax in 2025 is based on Line 23400 income and can quietly claw back your benefit. Learn how the clawback works, how much you could receive, and what strategies can help reduce or avoid it—like pension splitting, using a TFSA, managing RRIF withdrawals, and tax-efficient investing.

Tax Tips for Filing Your 2024 Income Tax Return

March 31, 20252025, Blog, financial advice, incorporated professionals, Individuals, Investment, pension plan, personal finances, Professionals, Tax

Get ahead of tax season! Discover what’s new for 2024—from increased CPP contributions and Home Buyers’ Plan changes to key deductions and credits. Maximize your refund and avoid costly mistakes.

Bank of Canada Announces Interest Rate Cut Amid Economic Uncertainty

March 12, 20252025, Blog, Government Budget, Investment, Tax

The Bank of Canada has cut interest rates to 2.75%, reflecting ongoing economic challenges and trade uncertainties.
Market volatility is normal, but staying disciplined and diversified helps manage risk over the long term.
If you have questions or concerns, please reach out—we’re here to help.
#BankOfCanada #InterestRates #MarketVolatility #FinancialWellbeing

TFSA vs RRSP 2025

February 6, 2025Blog, Investment, RRSP, Tax Free Savings Account

When looking to save money in a tax-efficient manner, Tax-Free Savings Accounts (TFSA) and Registered Retirement Savings Plans (RRSP) can offer significant tax benefits. The main difference between the two is that TFSAs are ideal for short-term goals, such as saving for a down payment on a house or a vacation, as its growth is entirely tax-free, while RRSPs are more suitable for long-term goals such as retirement. When comparing deposit differences, TFSAs have a limit of $7,000 for the current year, while RRSPs have a limit of 18% of your pre-tax income from the previous year, with a maximum limit of $32,490. In terms of withdrawals, TFSAs have no conversion requirements and withdrawals are tax-free, while RRSPs must be converted to a Registered Retirement Income Fund (RRIF) at age 71 and withdrawals are taxed as income.

Getting Ready for Money Emergencies

July 2, 2024Blog, Debt, Family, financial advice, Financial Planning, incorporated professionals, Individuals, Investment, personal finances, Professionals

Facing unexpected financial emergencies? An emergency fund acts as your financial safety net, ensuring peace of mind without dipping into savings or incurring debt. Start small, build steadily.

Stay Ahead in 2024: A Comprehensive Checklist for Federal Tax Updates

April 22, 20242024, Blog, Business Owners, Family, financial advice, Financial Planning, Individuals, Investment, Retirees, Retirement

Explore the upcoming 2024 Canadian tax changes affecting investors, business owners, and high-net-worth individuals. From capital gains adjustments to new incentives, stay informed with our comprehensive checklist.

2024 Federal Budget Highlights

April 17, 2024Blog, Business Owners, Estate Planning, Family, Financial Planning, incorporated professionals, Individuals, Investment, mortgage, personal finances, Professional Corporations, Professionals, Retirees, Retirement, Tax

On April 16, 2024, Canada’s Deputy Prime Minister and Finance Minister, Chrystia Freeland, presented the federal budget.
While there are no changes to federal personal or corporate tax rates, the budget introduces:

• An increase in the portion of capital gains subject to tax, rising from 50% to 66.67%, starting June 25, 2024. However, individual gains up to $250,000 annually will retain the 50% rate.
• The lifetime exemption limit for capital gains has been raised to $1.25 million. Additionally, a new one-third inclusion rate is set for up to $2 million in capital gains for entrepreneurs.
• The budget confirms the alternative minimum tax changes planned for January 1, 2024 but lessens their impact on charitable contributions.
• This year’s budget emphasizes making housing more affordable. It provides incentives for building rental properties specifically designed for long-term tenants.
• Introduces new support measures to aid people buying their first homes.
• Costs for specific patents and tech equipment and software can now be written off immediately.
• Canada carbon rebate for small business

TFSA vs RRSP – 2024

February 1, 20242024, Blog, Business Owners, Estate Planning, Family, financial advice, Financial Planning, Individuals, Investment, personal finances, Professionals, Retirement, RRSP, Tax Free Savings Account

When looking to save money in a tax-efficient manner, Tax-Free Savings Accounts (TFSA) and Registered Retirement Savings Plans (RRSP) can offer significant tax benefits. The main difference between the two is that TFSAs are ideal for short-term goals, such as saving for a down payment on a house or a vacation, as its growth is entirely tax-free, while RRSPs are more suitable for long-term goals such as retirement. When comparing deposit differences, TFSAs have a limit of $7,000 for the current year, while RRSPs have a limit of 18% of your pre-tax income from the previous year, with a maximum limit of $31,560. In terms of withdrawals, TFSAs have no conversion requirements and withdrawals are tax-free, while RRSPs must be converted to a Registered Retirement Income Fund (RRIF) at age 71 and withdrawals are taxed as income.

Category: Investment

2025 Federal Budget Highlights

What You Need to Know About RRIFs

OAS Clawback 2025: What Retirees Need to Know About the Recovery Tax

Tax Tips for Filing Your 2024 Income Tax Return

Bank of Canada Announces Interest Rate Cut Amid Economic Uncertainty

TFSA vs RRSP 2025

Getting Ready for Money Emergencies

Stay Ahead in 2024: A Comprehensive Checklist for Federal Tax Updates

2024 Federal Budget Highlights

TFSA vs RRSP – 2024

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Derrick Lee-Shanok

derrick@abilitygroup.ca

margareth@abilitygroup.ca

416-875-1836

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