Tax Planning

We consider the tax implications of individual or business decisions throughout the year, with the goal of minimizing your tax liability. We recognize that tax planning is not a simple matter and understand that the Canada Revenue Agency (“CRA”) is constantly changing its rules, so by staying abreast of the many areas of the CRA, we are able to make sure that you are not paying more than your fair share in taxes by recommending all available opportunities.

A TFSA is an account that provides tax benefits for saving. Investment income, including capital gains and dividends, earning in a TFSA is not taxed in most cases, even when withdrawn. TFSA with substantial gain could be taxed. Contributions to a TFSA are not deductible for income tax purposes, unlike contributions to a Registered Retirement Savings Plan (RRSP). A TFSA may contain cash and/or other investments such as mutual funds, certain stocks, bonds or guaranteed investment certificates (GICs).

BENEFITS OF TAX FREE SAVINGS ACCOUNT (TFSA)

  • Individuals can contribute up to $6,500.00 tax-free

  • Individuals are not required to have earned income to contribute

  • Individuals can withdraw money for any reason – without being taxed

  • Individuals can choose from a variety of investment options such as mutual funds, GICs and savings deposits

  • Individuals don't lose the contribution room if they make a withdrawal, but they do need to wait until the next year to re-contribute the money

  • Individuals can provide funds to their spouse for him or her to contribute to a Tax-Free Savings Account without being subjected to income attribution rules

  • If an individual does not contribute the maximum amount, they can carry forward their unused contribution room indefinitely. For example, if an individual contributed $2,500.00 to their TFSA in 2016, their contribution room for 2017 would be $7,500.00 ($2,500.00 carried forward from 2016 plus $5,000.00 for 2017)

  • Contributions are not tax-deductible, but investment returns (i.e. capital gains, interest and dividends) earned in a TFSA are not taxed, even when they are withdrawn