Correction: There is no negative change to the lifetime capital gains exemption. 2024 budget has been released and there is a lot to unpack. As expected, Canadians will have to pay more taxes and this change will have the most impact. #budget2024 #Canadiantax #tax #taxtok #canada #taxstrategy #taxplanning #taxadvice #cpa #big4 #pwc #deloitte #kpmg #ey #mnp #tfsa #rrsp #fhsa #business #smallbusiness

Bonus tip: A similar concept applies to Canadian-Controlled Private Corporations (CCPCs). However, the non-taxable portion of a capital gain increases the Capital Dividend Account balance. The corporation can then pay a capital dividend up to the balance in the Capital Dividend Account, and that dividend is not subject to personal tax. #Canadiantax #tax #taxtok #canada #taxstrategy #taxplanning #taxadvice #cpa #big4 #pwc #deloitte #kpmg #ey #mnp #tfsa #rrsp #fhsa #business #entrepreneur #smallbusiness

Bonus Tips: To maximize the benefit of the RRSP, you can contribute during the periods when you're in a higher tax bracket and make withdrawals when you are in a lower tax bracket. Even if your investment income is zero, you will still benefit from the difference in marginal tax rates. Also, the RRSP offers a range of benefits, including the First Home Buyers Plan (HBP). This program allows you to withdraw up to $35,000 tax-free to purchase a first home. The amount withdrawn under the HBP must be repaid to the RRSP within a 15-year period, effectively allowing individuals to loan money to themselves interest-free to finance a first home purchase. #Canadiantax #tax #taxtok #canada #taxstrategy #taxplanning #taxadvice #cpa #big4 #pwc #deloitte #kpmg #ey #mnp #tfsa #rrsp #fhsa #business #entrepreneur #smallbusiness

Bonus Fact: Important: If each partner holds exactly 50% of the operating corporation, neither has control, allowing the operating entity to has its own $500,000 small business deduction. In this scenario, all three corporations — each partner's holding corporation and the operating corporation — can claim their own $500,000 small business deduction, totaling $1,500,000 combined. #Canadiantax #tax #taxtok #canada #taxstrategy #taxplanning #taxadvice #cpa #big4 #pwc #deloitte #kpmg #ey #mnp #tfsa #rrsp #fhsa #business #entrepreneur #smallbusiness

How to maximize this credit: If you have a spouse or a common-law partner, all medical expenses should be reported on the tax return of the person with the lower net income. This is because you must subtract the lesser of $2,635 or 3% of the net income, so it’s more beneficial if that net income is lower. For example, if one person has a net income of $100,000 and another has $50,000, you will only need to subtract $1,500 from medical expenses, instead of $2,635. Do not report medical expenses individually, as this would result in subtracting that amount (either $2,635 or 3% of net income) twice. #Canadiantax #tax #taxtok #canada #taxstrategy #taxplanning #taxadvice #cpa #big4 #pwc #deloitte #kpmg #ey #mnp #tfsa #rrsp #fhsa #business #entrepreneur #smallbusiness